Ferro-Alloy Resources remains a buy with a price target of 38p at house broker Liberum even though the timeline for the huge Balusa vanadium project has been pushed back six months.
Balusa, in Kazakhstan, should have its feasibility study published in the fourth quarter of this year, with first production now likely to be in 2026 instead of late 2025.
In the meantime, revenues from the existing vanadium operations are tipped to climb strongly in 2023 thanks to higher recoveries of vanadium and other metals, while higher vanadium prices and lower transport costs will give earnings a lift.
“Given developments to date, we are reasonably confident that 2023 will prove to be FAR’s year of delivery,” said the note.
Shares were unchanged at 11.25p.