Ferro Alloy Resources (FAR) H2 2025 earnings summary

Executive summary

• Focused on developing the Balasausqandiq vanadium deposit in Kazakhstan, aiming to become a leading low-cost vanadium producer with significant by-product carbon potential.

• Phase 1 feasibility study completed, targeting 8,500 tonnes of vanadium pentoxide annually, with plans for further expansion.

• Ongoing R&D and pilot operations, with successful production of vanadium, molybdenum, and carbon black substitute (CBS) products.

Financial highlights

• Revenue for 2025 was $4.5m, slightly down from $4.7m in 2024, reflecting R&D focus and opportunistic concentrate processing.

• Cost of sales decreased to $6.3m (2024: $7.6m), mainly due to lower raw material and operating costs.

• Administrative expenses rose to $3.6m (2024: $3.0m), driven by fundraising and advisory costs.

• Net loss for the year was $8.4m, improved from a $9.4m loss in 2024.

• Cash at year-end was $1.68m, down from $3.78m, with net cash outflows from operations of $0.9m.

Outlook and guidance

• Balasausqandiq Phase 1 expected to deliver industry-leading low cash costs ($0.36/lb net of by-products) and strong project economics (NPV $931.6m, IRR 31%).

• Anticipated vanadium market deficit from 2026, supporting robust pricing outlook.

• Further phases planned, leveraging additional ore bodies for significant production scale-up.