Ferro-Alloy Resources Ltd. · LSE:FAR
Ferro-Alloy Resources — Investor Presentation (2023)
26 slides from Ferro-Alloy Resources's investor presentation, 2023
Slide 1: Corporate Presentation Q2 2023
CORPORATE PRESENTATION Q2 2023
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by Ferro-Alloy Resources Limited (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an au
Slide 3: Overview
Overview Kyzylorda Vanadium producer in Kazakhstan Aktobe Corporate Astana • Listed on London Stock Exchange and Astana International Exchange Almaty • Operations: Kazakhstan Motorway and rail in Shieli CHINA Activities Shymkent • Producing vanadium, molybdenum and nickel from purchased concentrates
Slide 4: Strategic Investment
Strategic Investment Led by Sir Mick Davis, former Xstrata CEO, Vision Blue has made a multi-stage strategic investment into FAR: • $15.5m already invested (including $1.1m by co-investors and $5.4m subscription during September 2022 equity fundraise Further options: • $2.5m - option to subscribe wi
Slide 5: Share capital
Share capital Major shareholders Shareholder Current shares (m) After conversion of VBR loan notes (m) Vision Blue Resources 77.6 (17.3%) 111.1 (23.0%) Andrey Kuznetsov 68.5 (15.2%) 68.5 (14.2%) Nicholas Bridgen 59.5 (13.2%) 59.5 (12.3%) Other shareholders 244.1 244.1 Total 449.7 483.2 Vision Blue R
Slide 6: The Vanadium Market
The Vanadium Market Corporate Presentation | Q2 2023 5
Slide 7: Global vanadium consumption by application
Global vanadium consumption by application 140,000 120,000 100,000 80,000 Energy Storage MTV Chemcials 60,000 Titanium Steel 40,000 20,000 - Source: VANITEC 2016 2017 2018 2019 2020 2021 2022 Corporate Presentation | Q2 2023 6
Slide 8: Sources of new demand 2002-2030
Sources of new demand 2002-2030 120,000 Not including energy storage 100,000 80,000 MTV 60,000 40,000 20,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Change in Steel Production Change in
Slide 9: Global vanadium consumption - speciality uses
Global vanadium consumption - speciality uses Global Vanadium Consumption by Application 6,000 5,000 4,000 Titanium MTV 3,000 Chemcials Energy Storage 2,000 1,000 - 2016 2017 2018 2019 2020 2021 2022 Source: VANITEC Corporate Presentation | Q2 2023 8
Slide 10: Two operations
Two operations A: Balasausqandiq project – approximately 96% of NPV B: Existing processing operation – approximately 4% of NPV Balasausqandiq Corporate Presentation | Q2 2023 9
Slide 11: Balasausqandiq deposit
Balasausqandiq deposit (96% of FAR’s NPV) Corporate Presentation | Q2 2023 10
Slide 12: Balasausqandiq deposit: An unusual type of ore
Balasausqandiq deposit: An unusual type of ore Nearly all the vanadium produced in the world is from titano-vanadiferous magnetite, a form of iron ore. Extraction of vanadium from this material is energy intensive and expensive. The ore at Balasausqandiq is different. It is a sedimentary deposit, wi
Slide 13: Balasausqandiq – why a huge cost advantage over other producers and projects?
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 • Significantly reduces capital costs • No need to pre-concentrate ore • Significantly reduces operating costs
Slide 14: Balasausqandiq – other advantages
Balasausqandiq – other advantages FAVOURABLE GEOLOGY • Outcrops at surface, open pit • Very large deposit • Total resource plus exploration potential 115m tonnes (middle of estimated range) • Visible geological cut-off, low stripping ratio EXISTING INFRASTRUCTURE AND TRANSPORT LINKS • Surfaced road
Slide 15: Balasausqandiq – economics
Balasausqandiq – economics LOWEST COST PRODUCER Balasausqandiq forecast cash cost of production: • $1.54/lb expected (costs apportioned between products) • $(1.20) if by-product revenues are deducted from costs EXCEPTIONAL FINANCIAL STATISTICS (Phases 1 and 2 combined) • NPV of $2 billion (10% disco
Slide 16: Feasibility study highlights
Feasibility study highlights Resource • 2022 exploration programme completed on OB1 - 4 • OB 1 Indicated mineral resource: 33m tonnes, 0.62% V2O5, 203,000 V2O5 content • OBs 2 – 4: Mineral resource estimate expected around July 2023 Metallurgy • Full metallurgical test results expected in Q3 2023 •
Slide 17: Balasausqandiq – mineral resource estimate
Balasausqandiq – mineral resource estimate Ore-body 1 (SRK 2023) Classification Zone Tonnage (Mt) % V2O5 Tonnes V2O5 contained Indicated Oxide 1.57 0.67 1.25 0.66 Transitional 30.08 0.61 Fresh (Sulphide) Total 32.90 0.62 203,364 Ore-bodies 2 – 5 (GBM – Competent Person’s Report 2018) Classification
Slide 18: Existing operation
Existing operation (4% of FAR’s NPV) Corporate Presentation | Q2 2023 17
Slide 19: Existing process plant - today
Existing process plant - today • Recovers vanadium, molybdenum and nickel from recycled raw-materials • Based on expanded pilot/test plant for the Balasausqandiq project Corporate Presentation | Q2 2023 18
Slide 20: Existing operation
Existing operation Existing operation • Treating purchased vanadium-containing concentrates – usually catalysts from the de-metalisation of oil in refineries • Products: • Vanadium pentoxide • Ferro-molybdenum • Nickel concentrates • All the valuable materials contained in the raw materials are reco
Slide 21: Existing operation – target production
Existing operation – target production Tonnes treated/produced Projected monthly sales revenue 2023 at current prices and discounts $m (% of total) Tonnes treated 500 Production: Vanadium pentoxide 35 – 50 $0.7m - $0.95m (70%) Molybdenum in FeMo 7-9 $0.3m - $0.4m (30%) Nickel in concentrate 4 - 15 $
Slide 22: Existing process plant – why?
Existing process plant – why? Advantages: • Useful cash flow • Retains an experienced management team o Technical experience o Four PhD’s within technical team o Enables informed input to design of Balasausqandiq project o Capability in-house to develop needed technology • Operating management ready
Slide 23: Development plan
Development plan Corporate Presentation | Q2 2023 22
Slide 24: Development plan
Development plan Now Existing operation and feasibility study for Balasausqandiq Mining and processing 1 Mtpa of ore Production 5,600 tpa Capex Phase 1 (to be funded from existing operations, debt, and exercise of options $100mby strategic partner) Expansion to 4 Mtpa of ore Cax Phase 2 Production i
Slide 25: Timeline – post feasibility study
Timeline – post feasibility study Approximate timeline of development plan Front end Finance for Commissioning Commissioning engineering Phase 1 Phase 1 Phase 2 Phase 1 Q1 2024 Q4 2025 Q2 2028 Q1 2024 Corporate Presentation | Q2 2023 24
Slide 26: Q&A
Q&A Corporate Presentation | Q2 2023 25