# Ferro-Alloy Resources reports FY2025 results with upgraded project economics

- Link: https://www.directorstalkinterviews.com/ferro-alloy-resources-reports-fy2025-results-with-upgraded-project-economics/4121250226
- Published: 2026-04-30T07:20:34+01:00
- Author: Amilia Stone

**[Ferro-Alloy Resources Limited](https://www.directorstalkinterviews.com/company/ferro-alloy-resources/far.l)**(
[LON:FAR](https://www.directorstalkinterviews.com/company/ferro-alloy-resources/far.l)),
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 (V_(2)O_(5) equivalent basis) | US$4.35/lb | 
| Cash cost of production net of by-products | US$0.36/lb | 
| Annual production of V_(2)O_(5) (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

[FAR News (1)](https://www.directorstalkinterviews.com/wp-content/uploads/2026/04/FAR-News-1.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2026/04/FAR-News-1.pdf)

Share on: