Ferro-Alloy To Ramp Up Production In Second Half Of 2023

Ferro-Alloy Resources Ltd (LSE:FAR), the vanadium miner, is expected to increase production at the Balasausqandiq project in the second half of 2023 following plant modifications and “improved operating efficiencies”, a research note by Shore Capital said in the wake of this morning’s progress report from Kazakhstan.
On Monday, the group said second-quarter production of vanadium pentoxide, molybdenum and nickel reached its highest levels ever.
In the note, stockbroker Shore Capital said production of the valuable elements will increase throughout 2023, over the first half of the year when the company was optimising its processing plant.
“The primary Balasausqandiq project is a world-class vanadium deposit with significant by-product credits capable of generating negative costs of production that underpin [Ferro Alloy’s] investment case,” said the capital markets company.
The Southern Kazak project is of “sedimentary origin”, which Shore Capital thinks will allow “low-cost vanadium extraction through leaching”.
More common “vanadium-bearing magnetite deposits” are often more expensive requiring pre-concentration or roasting to extract the elements, the UK investment group added.
Additionally, vanadium pentoxide prices, despite falling from recent highs of US$10.2/lb to US$7.5/lb, are expected to “remain well supported” as the demand for vanadium flow batteries increase.
Shares in Ferro Alloy dropped by 4.2% on Monday, having opened at 12p.
www.ferroalloynet.com
Subscribe to receive daily Vanadium price and news

This will close in 0 seconds