Ferro-Alloy Resources Ltd (LSE:FAR, FRA:5PE) told investors it started the production of ferro-molybdenum and vanadium pentoxide.
In October 2020, the company started to recover molybdenum in the form of calcium molybdate as a by-product during the recovery of vanadium from bought-in raw-material concentrates – and that calcium molybdate was priced at a discount to the price of the contained molybdenum.
It is now converting the calcium molybdate into ferro-molybdenum, which will see better prices and avoid discount.
Additionally, the company said it also commissioned equipment to convert ammonium metavanadate (AMV) into vanadium pentoxide. AMV similarly was sold at a small discount to the price of the contained vanadium pentoxide.
Some AMV volumes will continue in order to satisfy existing contracts but increasing amounts of vanadium pentoxide will be produced to eliminate discounts.