Ferro-Alloy Resources Limited (LSE:FAR) reported major progress on its Balasausqandiq vanadium project, revealing that capital costs have been trimmed by 40% after completing a detailed feasibility study. The company has finalized terms for front-end engineering and design with China National Chemical Engineering Sixth Construction Co., Ltd, which estimated construction expenses at approximately US$261 million. This substantial reduction boosts the project’s internal rate of return to 31% and raises its net present value to around US$931.6 million.
Further financial momentum comes from a conditional loan proposal by the Bank of Communication and the potential inclusion of Chinese insurance support, both of which could lower overall financing costs. These developments are expected to strengthen the project’s economic appeal and benefit stakeholders.
Despite these positive updates, Ferro-Alloy Resources Ltd. continues to face financial strain. The company’s weak financial performance and ongoing lack of profitability have weighed on investor confidence, with technical indicators pointing toward continued bearish momentum. The absence of dividend payouts further dampens its market outlook.
More about Ferro-Alloy Resources Ltd.
Ferro-Alloy Resources Limited is a mining company focused on developing the extensive Balasausqandiq vanadium deposit in southern Kazakhstan. The project’s ore body allows for comparatively low capital and operating expenses, supporting the company’s long-term production goals. In addition to vanadium, Ferro-Alloy also produces carbon black substitutes and other valuable by-products.
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