Ferro-Alloy Resources Limited (LON:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, has announced its final results for the year ended 31 December 2025.
Operational Highlights
· During the Period, the Company announced the results of its feasibility study on Phase 1 of the Balasausqandiq vanadium deposit. The Feasibility Study identified the strategic nature of the Project and its potential to become one of the largest and lowest cost vanadium producers globally.
· The results of the Feasibility Study confirmed a net present value for the Phase 1 of the Project of US$748 million (after tax, discount rate of 8%), an internal rate of return of 22% and a funding requirement of US$520 million to enter production.
· Following the signing of a framework agreement in June 2025, the Company subsequently announced in November 2025 that it had received an indicative cost estimate of US$261 million from China National Chemical Engineering Sixth Construction Co., Ltd for the engineering, procurement and construction for the Project (excluding the relatively minor costs of the equipment relating to uranium and molybdenum sorption).
· Taking into account the CC6 EPC cost estimate and the results of the Feasibility Study, the revised compelling headline economics for Phase 1 of the Project are as follows:
| US$m | |
| Capital expenditure (including working capital, strategic spares, owner’s costs, insurance etc.) | 313.2 |
| Contingency | 42.4 |
| Pre-production income, less costs | (43.7) |
| Revised funding required to get into production | 311.9 |
| Net Present Value (after tax, discount rate of 8%) | 931.6 |
| Project Internal Rate of Return | 31% |
| Cash cost of production (V2O5 equivalent basis) | US$4.35/lb |
| Cash cost of production net of by-products | US$0.36/lb |
| Annual production of V2O5 (tonnes) | 8,500 |
| Annual production of carbon black substitute (tonnes) | 247,000 |
| Mine life (ore-body 1 only, out of seven) | 20 years |
Financial and Corporate Summary
· Group revenues of US$4.53 million (2024: US$4.72 million), in line with management expectations and the Group’s strategy for the existing plant to act primarily as a research and development centre for vanadium and carbon black substitute (“CBS”) products.
· Cost of sales decreased to US$6.3 million (2024: US$7.6 million), driven by reductions in the costs of raw materials processed, wages and general operating costs at the existing plant, leading to a gross loss of US$1.7 million (2024: US$2.8 million).
· Continued capitalisation of the Group’s feasibility study costs incurred during the year as an exploration and evaluation asset, resulting in recognised asset of US$10.5 million (2024: US$8.0 million).
· The Company completed a number of equity placings during the year to support the Group’s ongoing activities, resulting in the issue of 75,907,391 shares and a gross cash benefit to the Company of US$6,142,125 (comprised of a combination of cash receipts and suppliers, as well as certain directors, accepting Company shares in lieu of cash for balances owed).
· The Group made an overall net loss for the year of US$8.42 million (2024: loss of US$9.43 million).
· Cash in the bank at 31 December 2025 was US$1.68 million (2024:US$3.78 million). Cash in the bank at 31 March 2026 was US$2.16 million, following an issue of equity in March 2026.
· During the Period, the Group appointed Northcott Capital Limited, in partnership with Oval Advisory Limited, as lead financial adviser with respect to the financing of the Project.
Research and Development Summary
During the Period, the Group progressed several ongoing research and development initiatives, summarised as:
· Electrolyte for vanadium redox flow batteries
Successful development and testing of the technology for producing vanadium mixed oxides, which would enable the production of vanadium electrolyte for battery energy storage. The technological process has been defined and sample products of sufficient high purity have been made. The Group is planning to participate in a new Kazakhstan Science Fund project, which is aiming to produce a 25 kW vanadium redox flow battery, by supplying high purity vanadium pentoxide or vanadium trioxide for the purpose of producing the vanadium electrolyte.
· Carbon black substitute
Continued development of the new form of CBS. Ongoing laboratory testing, in conjunction with Qingdao Master Tyre Co., Ltd (see announcement dated 19 January 2026), has shown good results, demonstrating that this CBS can be successfully partially substituted in a standard rubber tyre sidewall mix.
· Ferro-nickel
Development of a treatment process and preparation of an internal concept study for the production of ferro-nickel in an electric arc furnace, utilising the stockpiles of nickel-rich residues from the vanadium and molybdenum extraction process held on site. This is a low-cost project, and discussions are ongoing with potential customers to provide prepayment sufficient to cover the cost of construction. The electric arc furnace will be available for ferro-vanadium production following commissioning of the Project.
· Ferro-tungsten
Development and testing of a technological process for the production of ferro-tungsten from tungsten concentrate. Negotiations are ongoing for the sourcing of tungsten concentrates, with a view to starting production if sufficiently attractive terms can be agreed.
· Roasting process
New technological process adopted to improve the current roasting process at the existing plant. The new technology increases output by around 30% and lowers the consumption of gas.
Commenting on the results, Nick Bridgen, CEO of Ferro-Alloy Resources said:
“The highlight of the year was the positive Feasibility Study, which showcased the Balasausqandiq Project’s highly compelling financial characteristics. Whilst the study only covers Phase 1 of the Project, it serves as an indication of the scale of the opportunity, with further phases primed to supply the world shortage of vanadium that the roll out of vanadium redox flow batteries is expected to create.
Meanwhile, the existing plant, acting primarily as a research and development centre, has developed technologies that are going to be invaluable when production starts. This early developmental work provides the Group with an experienced workforce, high-quality specialists, and the technology to produce high-purity vanadium oxides for electrolyte production.
I look forward to building on these successes through the remainder of the year.”
Publication of Annual Report
The Company’s Annual Report will be available shortly on the Company’s website at www.ferro-alloy.com
