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Ferro-Alloy Resources set for significant increase in revenue following first commercial sales of calcium molybdate

Ferro-Alloy Resources has to date been focussed primarily on vanadium production

Ferro-Alloy Resources Group -

Ferro-Alloy Resources Ltd (LON:FAR) has made its first commercial production and sale of calcium molybdate. 

Calcium molybdate (CaMoO4) is used in the production of ferromolybdenum, molybdenum-containing alloys, ceramics and direct alloying of steel and alloys with molybdenum in electric arc furnaces. The molybdenum content of calcium molybdate is sold on the pricing basis of molybdic oxide less a small discount.

The molybdenum will be extracted as a by-product from the same raw materials that the company buys for the extraction of vanadium so there will be no additional raw-material costs. 

The quantity which the group can produce is dependent upon the grades of material being treated but is expected to be up to 14 tonnes of calcium molybdate (containing around 10 tonnes of molybdic oxide) per month.

Some interruptions to production in the next few months are expected due to on-going coronavirus restrictions and until the new connection to the adjacent high-voltage power line is made. This is likely to be in the spring of 2021 and is expected to reduce downtime caused by power outages and instability.

Although the immediate target is to produce calcium molybdate as a by-product from existing raw-materials, Ferro-Alloy Resources now has the option to source molybdenum-bearing raw-materials with molybdenum the primary metal where it is more profitable to do so.

The company said it is in discussions with potential off-takers and expects to sign a long-term contract shortly.

"I am extremely pleased with the speed at which we have been able to make our first commercial production and sale of calcium molybdate,” said Ferro-Alloy’s chief executive Nick Bridgen in a statement.

“This is another step in our plan for the development of the current small-scale operation while plans for the development of the Balasausqandiq project continue. It will bring a significant increase in revenue with only a small impact on costs and will be highly complementary to the record levels of production seen in recent months."

Quick facts: Ferro-Alloy Resources Group

Price: 9.9 GBX

LSE:FAR
Market: LSE
Market Cap: £30.98 m
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Ferro-Alloy Resources 'extremely active' after first commercial sale of...

Ferro-Alloy Resources Ltd's (LON:FAR) Nick Bridgen talks to Proactive London about their first commercial production and sale of calcium molybdate. Bridgen explains what the product is used for, the production of ferromolybdenum, molybdenum-containing alloys, ceramics and direct alloying of...

on 27/10/20

2 min read