Ferro-Alloy Resources expects to be operationally profitable in 2023
Ferro-Alloy Resources Ltd (LSE:FAR), the vanadium producer and developer of the Balasausqandiq deposit in Southern Kazakhstan, said it expects to be ‘operationally profitable’ this year.
Progress will be driven by an increase in the quantity of concentrates to be treated, and higher recoveries of vanadium, molybdenum and nickel. Increased prices expected for vanadium, and a return to more normal levels of transport, fuel and reagent costs will also help, the company said.
“The impact on 2023 should be substantial,” noted Ferro-Alloy chief executive Nick Bridgen in a statement.
Looking back to the end of 2022, Ferro-Alloy said it experienced delays in concentrate deliveries to its plant during the fourth quarter and December in particular.
This will negatively impact its financial results for 2022 with gross revenue of US$6.8mln and a net loss of $3.3mln forecast. The company exited the year with cash of US$4.2mln.
Looking ahead, CEO Bridgen said: “The company’s main activity for 2023 will be the completion of the feasibility study into the Balasausqandiq vanadium project, which is expected in the fourth quarter of 2023.”