RNS Number : 1247D
Ferro-Alloy Resources Limited
26 October 2020
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Ferro-Alloy Resources Limited / EPIC: FAR.L/ Market: LSE/
26 October 2020
Ferro-Alloy Resources Limited ('the 'Company')
First Commercial Production and Sales of Calcium Molybdate
Ferro-Alloy Resources Limited (LSE: FAR), the vanadium mining
and processing company with operations based in Southern
Kazakhstan, is pleased to announce that it has made its first
commercial production and sale of calcium molybdate.
Calcium molybdate (CaMoO 4 ) is used in the production of
ferromolybdenum, molybdenum-containing alloys, ceramics and direct
alloying of steel and alloys with molybdenum in electric arc
furnaces. The molybdenum content of calcium molybdate is sold on
the pricing basis of molybdic oxide less a small discount.
The molybdenum will be extracted as a by-product from the same
raw materials that the Company buys for the extraction of vanadium
so there will be no additional raw-material costs. The quantity
which the group can produce is dependent upon the grades of
material being treated but is expected to be up to 14 tonnes of
calcium molybdate (containing around 10 tonnes of molybdic oxide)
per month. Some interruptions to production in the next few months
are expected due to on-going Covid-19 restrictions and until the
new connection to the adjacent high-voltage power line is made,
expected in Spring of 2021, which is expected to significantly
reduce down-time caused by power outages and instability.
Nevertheless, the impact on revenues and earnings will be
significant in the context of the current processing operation.
Although the immediate target is to produce calcium molybdate as
a by-product from existing raw-materials, the Company now has the
option to source molybdenum-bearing raw-materials with molybdenum
is the primary metal where it is more profitable to do so.
The Company is in discussions with potential off-takers and
expects to sign a long-term contract shortly.
Nick Bridgen, CEO, said : "I am extremely pleased with the speed
at which we have been able to make our first commercial production
and sale of calcium molybdate. This is another step in our plan for
the development of the current small-scale operation while plans
for the development of the Balasausqandiq project continue. It will
bring a significant increase in revenue with only a small impact on
costs and will be highly complementary to the record levels of
production seen in recent months."
For further information, visit www.ferro-alloy.com or
Ferro-Alloy Resources Limited
Nick Bridgen, Chief Executive Officer email@example.com
Shore Capital (Broker)
Corporate Advisory: Toby Gibbs / Mark Percy / John More Tel: +44 (0)207 408 4090
Corporate Broking: Jerry Keen
VSA Capital (Financial Adviser) Tel: +44 (0)203 005 5000
Andrew Monk / Simon Barton
St Brides Partners Limited (Financial PR & IR Adviser)
Catherine Leftley / Megan Dennison Tel: +44 (0)207 236 1177
Further information about Ferro-Alloy Resources Limited
The Company's operations are all located at the Balasausqandiq
Deposit in Kyzylordinskaya Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq Vanadium Project (the "Project"); and
b) an existing profitable vanadium concentrate processing operation (the "Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product, together with by-products of carbon, molybdenum,
uranium, rare earth metals, potassium, and aluminium. Owing the
nature of the ore, the capital and operating costs of development
are very much lower than for other projects.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. In the system of reserve
estimation used in Kazakhstan the reserves are estimated to be over
70m tonnes in ore-bodies 1 to 5 but this does not include the full
depth of ore-bodies 2-5.
There is an existing concentrate processing operation at the
site of the Balasausqandiq Deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then adapted to treat low-grade concentrates and is now in the
process of being expanded and further adapted to treat a wider
variety of raw materials.
The Company has already completed the first steps of a
development plan for the existing operation which is expected to
result in annualised production capacity increasing gradually to
around 1,500 tonnes of contained vanadium pentoxide. The
development plan includes upgrades to infrastructure, an extension
to the existing factory and the installation of equipment to
increase the throughput and to add the facilities to convert AMV
into vanadium pentoxide.
The strategy of the Company is to develop both the Existing
Operation and the Project in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
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(END) Dow Jones Newswires
October 26, 2020 03:00 ET (07:00 GMT)