Ferro-Alloy Resources revenue in 2023 was in line with estimates, says house broker Liberum, though losses were higher due to supplier and logistical issues.
Key going forward is the feasibility study of the primary vanadium deposit (Balasausqandiq), said Liberum, where the scope has been increased to include evaluation of the proposed Phase 2 expansion of up to 4Mtpa of treated ore, producing 22.4kt of vanadium pentoxide (V2O5).
Completion of the Phase 1 feasibility study (1.1Mtpa of treated ore) remains the main focus and scheduled for the fourth quarter following delays in lead times for study workflows and consultant constraints.
Balasausqandiq is a best-in-class vanadium deposit with significant by-product credits capable of generating negative costs of production that underpin FAR’s compelling investment case, said the broker, which has a risked fair value estimate of 33p.
Shares rose 5% today to 5.2p.