Ferro-Alloy Resources Limited First sale of ferro-molybdenum (8586R)
10 November 2021 - 6:00PM
UK Regulatory
TIDMFAR
RNS Number : 8586R
Ferro-Alloy Resources Limited
10 November 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018
10 November 2021
Ferro-Alloy Resources Limited ('FAR' or the 'Company' or the
'Group')
First sale of ferro-molybdenum and completion of testing of
ferro-vanadium
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan, is pleased to announce it has made its first
commercial sale of ferro-molybdenum and has completed testing of
the production of ferro-vanadium.
As announced on 22 September 2021, the Company had started
conversion of its calcium molybdate product into the higher value
ferro-molybdenum. FAR are now pleased to announce that the first
commercial contract for sale has been signed.
The Company is now recovering around 4.5 tonnes per month of
ferro-molybdenum as a by-product from its recovery of vanadium from
bought-in concentrates and this is expected to grow as throughput
of the plant increases. The molybdenum is initially recovered as
calcium molybdate which was previously sold at a discount to
prevailing molybdenum prices, but this is now being converted and
sold as ferro-molybdenum, avoiding the discount.
In addition, the Company is pleased to announce that testing of
the production of ferro-vanadium using a similar process to
ferro-molybdenum has been successfully completed, allowing the
Company to choose in future whether to sell its vanadium production
as vanadium pentoxide or ferro-vanadium, depending on which is the
most profitable taking account of pricing and costs. Ferro-vanadium
typically sells for some US$3-$4 per kilogramme more than for the
same quantity of vanadium in vanadium pentoxide, roughly reflecting
conversion costs, but the ability to make ferro-vanadium opens up a
wider range of customers and, in particular, customers in
Kazakhstan which minimise transport costs and provide other fiscal
advantages.
The Company's full range of products available for sale now
consist of:
-- Ammonium metavanadate (AMV)
-- Vanadium pentoxide
-- Ferro-vanadium
-- Ferro-molybdenum
-- Nickel concentrates
Nick Bridgen, CEO, commented : "These are two important steps
towards maximising the value we get from our exiting operation, and
further demonstrates our growing technical expertise.
"With vanadium prices at a relatively high and stable level, and
with our growing production, our existing operations now fulfil
their objective of providing cash flows to support our feasibility
study and ongoing development of the Balasausqandiq deposit."
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited
+44 207 408 4090
Shore Capital Jerry Keen/Toby Gibbs
(Corporate Broker) +44 (0)203 005
VSA Capital Andrew Monk/Simon Barton 5000
St Brides Partners
Limited
(Financial PR & IR
Adviser) Catherine Leftley +44 207 236 1177
About Ferro Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskaya Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. In the system of reserve
estimation used in Kazakhstan the reserves are estimated to be over
70m tonnes in ore-bodies 1 to 5 but this does not include the full
depth of ore-bodies 2 to 5.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then adapted to treat concentrates and expanded. Further
expansion is being undertaken which is expected to result in
annualised production capacity of around 1,500 tonnes of contained
vanadium pentoxide plus significant by-product molybdenum.
The strategy of the Company is to develop both the Project and
the Existing Operation in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
separate operations.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DISFZMGMNLMGMZM
(END) Dow Jones Newswires
November 10, 2021 02:00 ET (07:00 GMT)
Ferro-alloy Resources (LSE:FAR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ferro-alloy Resources (LSE:FAR)
Historical Stock Chart
From Apr 2023 to Apr 2024