The latest research note from Panmure Liberum has highlighted continued progress at Ferro-Alloy Resources (LON:FAR) as the company moves forward with development plans for its Balasausqandiq Vanadium Project in Kazakhstan.
Analysts Duncan Hay and Tom Price maintained their BUY recommendation and 30p target price following the company’s 2025 results and project updates.
The broker noted that Ferro-Alloy Resources reported US$4.5 million in revenue for 2025, broadly in line with the previous year’s US$4.7 million, as the existing plant continued to operate primarily for research and development purposes. The net loss for the period narrowed slightly to US$8.4 million compared with a US$9.4 million loss in 2024.
One of the most significant developments over the past year was the publication of the feasibility study for Phase 1 of the Balasausqandiq Project. The study outlined plans for an enlarged 1.65 million tonnes per annum processing facility, up from the previously planned 1 million tonnes per annum operation.
Importantly, the project economics include revenue streams from both vanadium pentoxide and carbon black substitute products. According to Panmure Liberum, more than 40% of projected revenue is expected to come from carbon black substitute sales, highlighting the project’s diversified commercial potential.
The analysts stated: “Pre-production capex was estimated at US$564m and cash costs at US$4.35/lb V2O5 eq. (lowest decile of global producers).” The research note also pointed to a post-tax net present value of US$748 million and an internal rate of return of 22%.
Further encouraging investors was the subsequent capital cost update announced in November 2025. Ferro-Alloy Resources revealed that China National Chemical Engineering Sixth Construction Co., Ltd had provided an indicative EPC cost estimate significantly below the original feasibility study assumptions.
Panmure Liberum highlighted that estimated total development capex fell to around US$356 million, representing a reduction of approximately 37% compared with the earlier US$564 million estimate. The broker added that the revised economics increased the project’s estimated post-tax NPV to US$931.6 million while boosting the projected IRR to 31%.
The report stated: “FAR estimates total development capex of c. US$356m, US$208m or 37% less than the FS estimate of US$564m.”
The company is now progressing discussions with potential funding partners and strategic investors. Ferro-Alloy Resources is also advancing offtake discussions for both existing and future carbon black substitute products, while negotiations continue around financing support from Chinese banking and insurance institutions.
Highlights from the research note included:
• 2025 revenue of US$4.5 million
• Net loss improved to US$8.4 million from US$9.4 million
• Balasausqandiq feasibility study completed in October 2025
• Project throughput increased to 1.65mtpa
• Estimated development capex reduced from US$564 million to US$356 million
• Post-tax project NPV increased to US$931.6 million
• Project IRR improved from 22% to 31%
• Ongoing discussions with strategic investors and debt providers
• BUY recommendation maintained with 30p target price
Looking ahead, the broker outlined a development timeline that could see financing, FEED completion and final investment decisions during 2026, followed by construction activities in 2027 and commissioning targeted for 2028.
The note also referenced opportunities for further optimisation, including improved vanadium recoveries, enhanced reagent efficiencies and additional carbon black substitute production streams from tailings material.
Ferro-Alloy Resources continues to make progress on transforming the Balasausqandiq Project into a large-scale, low-cost vanadium and carbon product operation. With updated project economics showing materially lower capital requirements and stronger returns, the latest research note from Panmure Liberum suggests the company remains focused on securing funding and advancing towards development milestones over the coming years.
