Ferro-Alloy Resources (LSE:FAR) has raised £1.57 million through the issuance of 28.6 million new ordinary shares priced at 5.5p each, representing a 21.4% discount to the company’s previous closing share price. The funds will be used to support front-end engineering and design activities for the Balasausqandiq vanadium project in Kazakhstan. Existing strategic investor Vision Blue Resources participated in the placing as a related party, increasing its holding to around 22.5% of the company’s enlarged share capital. The newly issued shares are expected to commence trading in London on 13 March 2026, bringing the company’s total issued share count to approximately 587.8 million.
Despite the capital raise, the company’s outlook continues to be weighed down by weak financial performance, including ongoing losses, negative cash flow, and negative equity. Technical indicators provide some positive signals, with the share price trading above key moving averages and showing strong momentum, although overbought conditions may pose short-term risks. Valuation metrics remain limited given the company’s loss-making position and the absence of dividend support.
More about Ferro-Alloy Resources Ltd.
Ferro-Alloy Resources Limited is a vanadium producer focused on advancing the large Balasausqandiq deposit in southern Kazakhstan. At the project, vanadium is expected to be the primary product, alongside a carbon black substitute and several additional by-products. The company operates a concentrate processing plant and research and development facility at the site, aiming to leverage relatively low capital and operating costs to compete in global vanadium and carbon materials markets.
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