Ferro-Alloy Resources Ltd. · LSE:FAR
Ferro-Alloy Resources — Investor Presentation (March 2021)
30 slides from Ferro-Alloy Resources's investor presentation, Mar 28, 2021
Slide 1: Corporate Presentation Q1 2021
CORPORATE PRESENTATION Q1 2021
Slide 2: Overview
Overview Vanadium producer in Kazakhstan with the world’s most prospective deposit Legend Capital Major towns Kyzylorda FAR Project Corporate Aktobe • Listed on London Stock Exchange and Karaganda Astana International Exchange • Operations: Kazakhstan Astana Activities Almaty • Existing production –
Slide 3: Strategic Investment
Strategic Investment Vision Blue Resources has made a long-term strategic investment Led by Sir Mick Davis, former Xstrata CEO, Vision Blue has made a multi-stage strategic investment into FAR: $3.1m initial investment, $1.5m in equity & Construction Funding Rights: To invest $1.6m in convertible lo
Slide 4: The Vanadium Market
The Vanadium Market Corporate Presentation | Q1 2021 4
Slide 5: Vanadium
Vanadium Used in established industries and emerging green technology Uses: 3.5% 1.2% 4.3% Steel Alloy Titanium Alloy 90% consumed by global Vanadium Flow Vanadium steel industry Batteries end-use Chemical catalyst Other 91.0% Titanium alloys - e.g. Ceramics and jet engine and aircraft chemicals ind
Slide 6: Vanadium is a battery metal
Vanadium is a battery metal An entirely new major market for vanadium Projected annual demand in 2050 for Energy Technologies as a percentage of 2018 Production Levels under 2DS Cobalt Source: presentation to Vanitec 2020 Corporate Presentation | Q1 2021 6
Slide 7: Vanadium Price History
Vanadium Price History Metal Bulletin V2O5 Monthly Midpoint Average Real Price Jan. 2004 - Dec. 2020 Inflated to Nov. 2020 US$ $40.00 May ‘05: $37.10 $35.00 $30.00 US$/Pound V2O5 Nov ’18: $28.42 Mean $9.03 Median $7.24 $25.00 Current $7.63 (4 March 2021) US$/Pound V2O5 $20.00 Jun ’08: $17.53 $15.00
Slide 8: The vanadium price is volatile
The vanadium price is volatile The average price is much higher than the usual price – impacted by periodic spikes to very high levels Source: Metal Bulletin, TTP Squared, Inc. Corporate Presentation | Q1 2021 8
Slide 9: World Market for Vanadium is growing strong
World Market for Vanadium is growing strong Deficit forecast for 2021 V Consumption 2019 2020e 2021e Ex China Steel Production (million MT) 848,075 757,354 815,000 KgV/MT Steel 0.0554 0.0572 0.0590 Total Vanadium (MTV) 47,000 43,363 48,085 China Steel Production 994,166 1,060,981 1,077,886 KgV/MT St
Slide 10: Two operations
Two operations A: Existing processing operation B: Balasausqandiq project Corporate Presentation | Q1 2021 10
Slide 11: Two Operations
Two Operations Two Projects operating on the same site: A. EXISTING OPERATION B. BALASAUSQANDIQ PROJECT • Treating purchased secondary material • A huge deposit with economic potential to recover vanadium pentoxide in a class of its own • Existing capacity around 700 tonnes per • Upgrade of existing
Slide 12: Existing operation
Existing operation Corporate Presentation | Q1 2021 12
Slide 13: Existing Process Plant - Today
Existing Process Plant - Today • Recovers vanadium and molybdenum from recycled raw-materials • Good road access to site • Motorway and rail in Shieli, 70 km from site • Already grid connected, and connecting onto adjacent high voltage power-line in Q2 Corporate Presentation | Q1 2021 13
Slide 14: Existing Production
Existing Production The existing process plant production of V2O5: • Treating secondary materials to extract V2O5 in the form of AMV and molybdenum as molybdenum calcite • Capacity now around 60 tonnes per month V2O5 and growing • Planned to increase capacity in 2021 to 125 tonnes per month with the
Slide 15: Existing process plant
Existing process plant Roasting Ovens Corporate Presentation | Q1 2021 15
Slide 16: Laboratory
Laboratory Ferro - Alloy has a well-equipped laboratory with highly qualified technical staff Technical director Mr A A Fofanov – one of the world’s foremost vanadium specialists Corporate Presentation | Q1 2021 16
Slide 17: Balasausqandiq deposit
Balasausqandiq deposit Corporate Presentation | Q1 2021 17
Slide 18: Balasausqandiq deposit: a unique type of ore
Balasausqandiq deposit: a unique type of ore • The ore at Balasausqandiq is a sedimentary deposit, with high grade of vanadium and negligible iron – a significant advantage • It is not the usual vanadiferous titano-magnetite type of deposit of which there are many but which are high cost to develop
Slide 19: Balasausqandiq – why a huge cost advantage over other producers
Balasausqandiq – why a huge cost advantage over other producers and projects? Crucially not a titano-vanadiferous magnetite deposit WHY THIS MATTERS: • No need for high temperature roasting • Reduces capital and operating costs by around 60% • No need to pre-concentrate ore • Reduces operating costs
Slide 20: Balasausqandiq – Other advantages
Balasausqandiq – Other advantages FAVOURABLE GEOLOGY • Outcrops at surface, open pit, • Very large deposit • Total resource plus exploration potential 126m tonnes (middle of estimated range) • Visible geological cut-off, low stripping ratio EXISTING INFRASTRUCTURE AND TRANSPORT LINKS • Surfaced road
Slide 21: Balasausqandiq – Economics
Balasausqandiq – Economics These cost advantages translate into what is destined to become the world’s lowest cost and most profitable vanadium producer WORLD’S LOWEST COST PRODUCER Balasausqandiq forecast cash cost of production: • $1.54/lb expected (costs apportioned between products) • $(1.20) (n
Slide 22: Development plan
Development plan Corporate Presentation | Q1 2021 22
Slide 23: Development plan
Development plan Expansion of existing operation to Now 1,500 tpa and feasibility study for Ongoing Balasausqandiq Mining and processing 1 Mtpa of ore Phase 1 Production 5,600 tpa Capex (to be funded from existing operations, debt, and $100m strategic partner) Expansion to 4 Mtpa of ore Phase 2 Cape
Slide 24: Appendix
Appendix Corporate Presentation | Q1 2021 24
Slide 25: Kazakhstan
Kazakhstan An attractive operating environment • An upper-middle income country (World Bank) • Smooth transition to a new President in 2019 (World Bank) • 25th (of 191) in ease of doing business (World Bank 2020) • 10% income tax, 20% profits tax • No requirement for government free-carry or local o
Slide 26: Appendix: Valuable by-products
Appendix: Valuable by-products Valuable by-products produced as part of the single processing route Carbon-silica flux Concentrated to make carbon black, used in the manufacture of rubber – a Projected revenue Product per tonne of ore ($/t) $12bn global market, Carbon-silica mix can be briquetted to
Slide 27: Appendix: Board & Management
Appendix: Board & Management Experienced team with proven capability BOARD MANAGEMENT Sir Mick Davis Chairman (designate, to be appointed after the Initial Investment is completed) Alexandar Fofanov Technical Director A highly successful mining executive accredited with building Xstrata plc into Che
Slide 28: Appendix: Straightforward process
Appendix: Straightforward process Process flowsheet tested in 15,000 tpa pilot plant Thickening Autoclave Crushing & De-Carbonisation and Filtration Leaching Absorption Desorption Grinding Circuit Ammonia Precipitation, Ferro Vanadium Metavanadate Crystallisation Dissociation Vanadium Pentoxide (75-
Slide 29: Appendix: Balasausqandiq
Appendix: Balasausqandiq Resources and potential JORC resource based on only one orebody Category Tonnes V2O5 V2O5 Orebody (JORC 2012) (Mt) (%) (tonnes) OB1 Indicated Primary1 21.4 0.67 143,380 OB1 Inferred Oxide2 1.3 0.89 11,570 OB1 Inferred Primary1 1.6 0.67 10,720 Total 24.3 0.68 165,670 OB2-OB5
Slide 30: Disclaimer
Disclaimer This document (the “Document”) has been prepared by Ferro-Alloy Resources Limited (the “Company”) based on Company information and publicly available information provided by sources that the Company believes to be reliable. This Document is for distribution in the UK only to persons who:
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