Ferro-Alloy Resources (LSE:FAR) reported its 2025 final results, underscoring progress on the Phase 1 feasibility study for its Balasausqandiq vanadium project. The study indicates the potential for the project to become one of the largest and lowest-cost vanadium operations globally.
Updated project economics, incorporating an indicative EPC cost from China National Chemical Engineering Sixth Construction, point to a post-tax net present value of approximately US$932 million and an internal rate of return of 31%. The company also expects funding requirements to be significantly reduced to around US$312 million to reach production.
R&D operations continue to support future growth
The company’s existing processing plant remained primarily focused on research and development, generating limited revenue while advancing several key technologies. These include vanadium electrolyte production, carbon black substitutes, and ferro-nickel and ferro-tungsten processes, all of which are expected to contribute to future commercial output.
For 2025, Ferro-Alloy Resources reported revenue of US$4.53 million and a reduced net loss of US$8.42 million. The group also completed multiple equity raises during the year to fund its activities and appointed Northcott Capital and Oval Advisory as lead advisers to support project financing efforts. These steps aim to position the company to benefit from rising demand linked to vanadium redox flow batteries.
Financial weakness and valuation remain key constraints
Despite progress on the project side, the company’s outlook continues to be weighed down by weak financial metrics, including ongoing losses, negative cash flow, and negative equity.
From a technical perspective, the stock shows some positive momentum, trading above key moving averages. However, overbought signals suggest elevated short-term risk. Valuation remains limited, given the company’s loss-making status and absence of a dividend.
More about Ferro-Alloy Resources Ltd.
Ferro-Alloy Resources Limited is a vanadium producer and project developer focused on the large Balasausqandiq deposit in southern Kazakhstan. Vanadium is its primary product, alongside a carbon black substitute and various by-products. The project benefits from relatively low capital and operating costs due to the characteristics of the ore, and the company operates an on-site processing plant and laboratory to support technology development and future large-scale production.
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