Ferro-Alloy Resources Ltd (LON:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, has announced the production results of the Group’s existing operation for Q2 2024.
Q2 Production Results
| 2023 | 2024 | ||||||||
| Q12023 | Q22023 | H12023 | FY 2023 | Q12024 | Q22024 | Q1 / Q2 % change | H12024 | H1 % change | |
| Tonnes of concentrate processed | 194.1 | 1,016.6 | 1,210.7 | 2,228.0 | 668.6 | 777.5 | +16.3% | 1,446.1 | +19.4% |
| Tonnes of vanadium pentoxide produced* | 31.3 | 141.4 | 172.7 | 310.5 | 81.6 | 87.6 | +7.4% | 169.2 | -2.0% |
| Tonnes of molybdenum produced** | 6.5 | 14.1 | 20.6 | 34.4 | 7.1 | 6.9 | -2.8% | 14.0 | -32.0% |
| Tonnes of nickel produced*** | 9.7 | 50.8 | 60.5 | 111.4 | 33.4 | 38.8 | +16.2% | 72.2 | +19.3% |
* partly contained in ammonium metavanadate
** in ferro-molybdenum
*** in nickel concentrate
Commentary
During the quarter the Company continued to build on the improvements made to the plant in Q1 2024, in order to enhance its processing capabilities, including the expansion of the solution ponds which will allow the Company to increase the purity of its vanadium pentoxide product and, therefore, improve resulting selling prices.
Production of vanadium pentoxide during Q2 2024 was 7% greater than Q1 2024, largely driven by a higher tonnage of concentrate processed during the period. H1 2024 vanadium pentoxide production was at similar levels to H1 2023 but, as a result of different grades of concentrate being treated, a 32% reduction in molybdenum output.
Production Outlook
The Company will continue to treat raw materials partly on a trading basis and partly on a tolling basis, eliminating the risk of price movements between the time of purchase of concentrates and the sale of the product.
Ferro-Alloy Resources has been stockpiling nickel-rich concentrates which are the residues from the prior production of vanadium and molybdenum from concentrates. Some 4,000 tonnes are now on site. These residues can be sold at low prices as low-grade nickel concentrates. However, the Company has developed new technology to upgrade these residues to standard nickel grades and to recover further amounts of vanadium and molybdenum which were not recovered in the initial processing. Laboratory testing has showed good results and trial processing at a commercial scale has commenced. After a period of optimisation of operating regimes, and provided the results are in line with laboratory test-work, the Company will commence full production during Q3 2024.
Processing of these residues will use the full capacity of the plant for several months, with monthly production of vanadium and molybdenum expected to be only a little lower than that achieved from the treatment of bought-in concentrates.
Once the stockpile of nickel-rich concentrates is used up, the treatment of concentrates will resume, with periodic treatment of the resultant nickel-rich residues. Overall recovery of vanadium and molybdenum from the bought-in concentrates will therefore rise as well as yielding the increased revenue from the nickel concentrates.
Commenting on the production results, Nick Bridgen, CEO of Ferro-Alloy Resources said:
“Current trading conditions are difficult but the innovative approach of our technical team to find alternative routes to profitability are bearing fruit and we look forward to seeing the results come through.”
