Ferro-alloy Resources Ltd. · LSE:FAR
Ferro-alloy Resources — Investor Presentation (October 2019)
21 slides from Ferro-alloy Resources's investor presentation, October 2019
Slide 1: Corporate Presentation October 2019
CORPORATE PRESENTATION OCTOBER 2019
Slide 2: Overview
Overview An emerging vanadium producer located in Kazakhstan Established Excellent Outstanding Vanadium Producer Project Potential Project Economics Current production 144 tpa 5 known ore bodies – 1st has NPV of $2 billion; V2O5 an estimated JORC reserve of 60% lower cost than standard; 23 million t
Slide 3: Operational Highlights
Operational Highlights Two projects operating simultaneously on the same site: 1. EXISTING OPERATION 2. BALASAUSQANDIQ PROJECT o Treating purchased secondary o A huge deposit with economic material potential in a class of its own o Currently producing 144 tonnes o Development of project on- V2O5 per
Slide 4: The Balasausqandiq Project
The Balasausqandiq Project Balasausquandiq has the potential to be one of the world’s largest vanadium producers, at the lowest cost of production o New standalone plant to be operated in parallel with the existing profitable processing operation o Phased expansion in two stages: 1 Capex Mining & Pr
Slide 5: Balasausqandiq – A Unique Project
Balasausqandiq – A Unique Project Crucially not a titano-vanadiferous magnetite deposit The ore contains very low levels of acid consuming components such as iron oxide and carbonates. WHY THIS MATTERS: 1. Smaller quantity of acid required 1. Reduces capital and operating for leaching costs by ~60%
Slide 6: Balasausquandiq Vanadium Project
Balasausquandiq Vanadium Project Potential to be an industry leading, low cost, giant source of supply FAVOURABLE GEOLOGY AND PROCESSING o Outcrops at surface, open pit with no pre-strip required o Very large, with huge exploration potential o Constant grade with little tectonic alteration, visible
Slide 7: Best in class
Best in class Size of bubble represents post tax profit Source: Shore Capital Corporate Presentation | July 2019 7
Slide 8: Geographical Advantage
Geographical Advantage Excellent regional infrastructure and access to end markets Brownfield: existing operating vanadium plant and therefore significant site infrastructure is already in place Logistics: excellent links to China, Russia and Europe Power: connected to grid, now connecting to nearby
Slide 9: Kazakhstan
Kazakhstan An attractive operating environment ◦ Stable democratic, business-friendly government ◦ Already a major exporter of metals and minerals ◦ Attractive fiscal regime – low tax and royalties ◦ No requirement for government free-carry or local ownership ◦ Subsoil use law updated in 2018 based
Slide 10: Existing Processing Operation
Existing Processing Operation Small scale processing plant in operation at project site • Operates a vanadium processing plant which treats purchased vanadium-containing concentrates and raw materials Current production 144 tpa V2O5 • $10m expansion of the current operation is underway • Ten-fold ex
Slide 11: Vanadium
Vanadium Used in established industries and emerging green technology ◦ One of the highest strength to weight ratios of A soft grey ductile transition metal all metals Main products: ◦ Adds corrosion and heat resistance ◦ Vanadium Pentoxide (V2O5) ◦ Ability to exist in multiple oxidation states ◦ Fe
Slide 12: Vanadium
Vanadium Demand drivers in traditional and emerging uses STEEL REDOX FLOW BATTERIES Steel demand remains robust Replacement of fossil fuels with solar and wind power ◦ Demand for structural steel and speciality steels in the automotive & requires energy storage to cope with intermittency. aerospace
Slide 13: Vanadium
Vanadium Supply issues increase demand for stable source of production Supply is extremely concentrated: 72% of global production FAR is one of the few global pure play vanadium developers derived as a co-product from steel plants Not enough mine development: Few economic primary FAR’s has potential
Slide 14: Upcoming Work Programme
Upcoming Work Programme Established, staged development plan Balasausqandiq Balasausqandiq Expansion of Current Stage 1 Stage 2 current operation 1Mtpa 4Mtpa Additional 1,356 tpa V2O5 5,600 tpa V2O5 16,400 tpa V2O5 production: Total production: 144 tpa V2O5 1,500 tpa V2O5 7,100 tpa V2O5 23,500 tpa V
Slide 15: Funding
Funding Owing to the limited capital requirements and excellent financial returns available from the project, the Company will be able to seek extensive non-equity funding – minimising shareholder dilution STAGE 1 STAGE 2 The Company will seek non-equity The company intends to fund the Stage funding
Slide 16: Investment Case
Investment Case An excellent opportunity centred on a world class project 23.5 tpa 23 Mt Established producer Large asset with JORC Reserve for one with low-cost expansion Annual production by significant exploration (of five) orebody plan underway 2023 potential 60% 0% Potential to be one of Lower
Slide 17: Appendix: Valuable by-products
Appendix: Valuable by-products Opportunity to further boost revenue through sale of by-products Carbon-silica flux Projected revenue Product Concentrated to make carbon black, used in the manufacture of rubber – a per tonne of ore ($/t) $12bn global market, selling for several thousand dollars per t
Slide 18: Appendix: Board and Management
Appendix: Board and Management Experienced team with proven capability and understanding BOARD MANAGEMENT Nicholas Bridgen Chief Executive Chartered accountant, lives in Kazakhstan and speaks fluent Russian. 14 years with Rio Tinto group in various roles and 25 Alexandar Fofanov years’ board level e
Slide 19: Appendix: Straightforward Process
Appendix: Straightforward Process Process flowsheet tested in 15,000 tpa pilot plant De- Thickening Autoclave Crushing & Carbonisation and Filtration Leaching Absorption Desorption Grinding Circuit Ammonia Precipitation, Ferro- Vanadium Metavanadate Crystallisation Dissociation (75-75% Vanadium Pent
Slide 20: Appendix: Balasausquandiq
Appendix: Balasausquandiq 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 21: 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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