Business
Trading & Operational Update and Grant Funding
Trading & Operational Update and Grant Funding.
About this update from Ferro-alloy Resources Ltd.
[{"type":"text","content":"\n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\").\n \n \n \n \n \n \n 30 January 2023\n \n \n \n Ferro-Alloy Resources Limited\n \n \n \n \n (\"Ferro-Alloy\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n Trading update, operational update and receipt of grant funding for electrolyte\n \n \n \n \n \n \n \n \n Ferro-Alloy Resources Limited (LSE:FAR),\n the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan\n , announces a general trading update, an update on the planned expansion of the existing processing plant treating purchased concentrates and the receipt of Kazakhstan grant funding for a vanadium electrolyte project\n \n \n \n Trading Update\n \n \n \n During Q4 2022 and primarily in December, the Company experienced delays in the delivery of concentrates to the processing plant which resulted in reduced output. The Company therefore focused on the initiation of nickel concentrate production which partially mitigated the impact but did not fully make up the shortfall. Consequently, the trading results for the final quarter of 2022 and the first half of January 2023 have been lower than anticipated.\n \n \n Concentrate deliveries have now started to arrive at the plant site in significant quantities and, to help avoid repetition of the shortfall, the Company has signed a new regular concentrate delivery contract with an additional supplier, the first consignment of which is scheduled for delivery at the plant site in March 2023.\n \n \n Nevertheless, the shortfall of production experienced during the final quarter of 2022, and in particular December, will negatively impact the Company's 2022 financial results. Gross revenue for the year ended 31 December 2022 is expected to be in the region of US$6.8m with a net loss expected to be in the region of US$3.3m, lower than current market expectations, subject to the finalisation of the year end accounts. The Company's cash position at 31 December 2022 was US$4.2m (2021: US$2.8m).\n \n \n \n Existing Processing Plant Update\n \n \n \n \n Vanadium pentoxide circuit\n \n \n \n The design of the Company's new dissociatio...