THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT
FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
24 October 2024
Ferro-Alloy Resources
Limited
("Ferro-Alloy" or the "Group" or the "Company")
Q3 2024 Production
Results
Ferro-Alloy Resources Limited
(LSE:FAR), the vanadium producer and
developer of the large Balasausqandiq vanadium deposit in Southern
Kazakhstan, announces the production
results of the Group's existing operation for Q3 2024.
Q3
Production Results
|
|
2023
|
2024
|
|
|
Q1
2023
|
Q2
2023
|
Q3
2023
|
TOTAL Q1, Q2 &
Q3
|
Q1
2024
|
Q2
2024
|
Q3
2024
|
% change vs
Q2
|
TOTAL Q1, Q2 &
Q3
|
% change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes of concentrate processed
|
194.1
|
1,016.6
|
314.0
|
1,524.7
|
668.6
|
777.5
|
1,227.8
|
+57.9%
|
2,673.9
|
+75.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes of vanadium pentoxide produced*
|
31.3
|
141.4
|
47.3
|
220.0
|
81.6
|
87.6
|
52.3
|
-40.3%
|
221.5
|
+0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes of molybdenum produced**
|
6.5
|
14.1
|
6.4
|
27.0
|
7.1
|
6.9
|
7.1
|
+2.9%
|
21.1
|
-21.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes of nickel produced***
|
9.7
|
50.8
|
15.7
|
76.2
|
33.4
|
38.8
|
63.9
|
+64.7%
|
136.1
|
+78.6%
|
* partly
contained in ammonium metavanadate
** in
ferro-molybdenum
*** in nickel concentrate
Commentary
As first announced in July, the Company
undertook test processing of stockpiled nickel-rich residues held
at the plant site during Q3. The nickel residues contained lower
levels of vanadium than historic bought-in catalysts, resulting in
40.3% less vanadium production in Q3 than Q2, but this was offset
by having minimal raw material costs. Overall, molybdenum
output remained consistent between the quarters. The metallurgical
recoveries of vanadium and molybdenum from the nickel residues in
the testing period did not sufficiently replicate the results
achieved in the laboratory and the Company has decided to revert to
the treatment of standard concentrate raw materials, although this
decision might change in future when different metal prices
prevail.
Production of vanadium pentoxide for the year
to date is similar to that of 2023 while molybdenum output has
decreased by 21.9%, comparatively, mainly as result of metal
content variations within the concentrates treated.
During Q3 2024 the average prices of vanadium
pentoxide and molybdenum were US$5.3/lb (Q3 2023: US$7.4/lb) and
US$51.2/kg (Q3 2023: 54.1/kg), respectively.
Production
Outlook
Following the outcome of the commercial scale
testing of the nickel-rich residues the Company has reverted to
processing bought-in catalysts on a non-tolling basis.
The Company has sufficient catalysts for
processing during Q4 2024 either already at the plant site or on
order.
Research and development are ongoing to
determine whether the Company can process the upgraded nickel
concentrates to produce ferro-nickel.
Commenting on the production results, Nick Bridgen, CEO of
Ferro-Alloy Resources said:
"Current trading conditions are difficult, but the operation
continues to make a contribution to overheads whilst we complete
the main project feasibility study."
ENDS
For further
information, visit www.ferro-alloy.com or contact:
|
Ferro-Alloy Resources Limited
|
Nick Bridgen (CEO) / William
Callewaert (CFO)
|
info@ferro-alloy.com
|
|
Shore Capital
(Joint Corporate
Broker)
Panmure Liberum Limited
(Joint Corporate Broker)
BlytheRay (Financial
PR)
|
Toby Gibbs/Lucy Bowden
Scott Mathieson/John More
Tim Blythe/Will Jones
|
+44 207 408 4090
+44 20 3100 2000
+44 20 7138 3204
|
Notes to
Editors
About
Ferro-Alloy Resources Limited:
The Company's operations are all located at the
Balasausqandiq deposit in Kyzylordinskoye 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.
The most recent mineral resource estimate for
ore-body one (of seven) provided an Indicated Mineral Resource of
32.9 million tonnes at a mean grade of 0.62%
V2O5 equating to 203,364 contained tonnes of
vanadium pentoxide ("V2O5"). 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 or the remaining ore-bodies
which remain substantially unexplored.
The Project will be developed in two phases,
Phase 1 and Phase 2, with Phase 1 treating 1.65m tonnes per
year.
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 expanded and adapted to recover
vanadium, molybdenum and nickel from purchased
concentrates.
The existing operation is located on the same
site and uses some of the same infrastructure as the Project, but
is a separate operation which will continue in parallel with the
development and operation of the Project.