Ferro-Alloy Resources Ltd. · LSE:FAR
Ferro-Alloy Resources — Investor Presentation (July 2020)
16 slides from Ferro-Alloy Resources's investor presentation, July 2020
Slide 1: Corporate Presentation July 2020
CORPORATE PRESENTATION July 2020
Slide 2: Overview – a vanadium producer in Kazakhstan
Overview – a vanadium producer in Kazakhstan Corporate: • Listed on London Stock Exchange and Astana International Exchange • Headquarters: Guernsey • Operations: Kazakhstan Activities • Vanadium pentoxide production – expanding to 1,500 tonnes per year • Balasausqandiq vanadium project – 22,400 ton
Slide 3: Vanadium
Vanadium Used in established industries and emerging green technology Main products: ◦ Adds strength and corrosion resistance to ◦ Vanadium Pentoxide (V2O5) steel ◦ Ferro-vanadium (FeV) ◦ Better high temperature performance ◦ Battery electrolyte ◦ Ability to exist in multiple oxidation states VANADI
Slide 4: Corporate Presentation | July 2020
Corporate Presentation | July 2020 4
Slide 5: Vanadium price distribution
The vanadium price distribution chart shows a clear peak at US$5.00-$6.00/lb V2O5 reflecting the historical equilibrium market clearing price when supply exceeds demand and the cost of production drives the market. A secondary peak occurs at $14.00-$15.00/lb V2O5 representing a point of price stabil
Slide 6: Two operations
Two operations Two projects operating on the same site: A. EXISTING OPERATION B. BALASAUSQANDIQ PROJECT o Treating purchased secondary o A huge deposit with economic material to recover vanadium potential in a class of its own pentoxide o Development in parallel with the o Existing capacity 700 tonn
Slide 7: 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 Production 5,600 tpa Capex 1 (to be funded from existing operations, debt, and $100m other non-equity sources) Phase Expansion to 4 Mtpa of ore
Slide 8: Balasausqandiq – why a huge cost advantage?
Balasausqandiq – why a huge cost advantage? 1. Crucially not a titano-vanadiferous magnetite (“TVM”) deposit WHY THIS MATTERS: • No need for high temperature • Reduces capital and operating roasting costs by ~60% • No need to pre-concentrate ore • Potential to become the world’s lowest cost producer
Slide 9: Balasausqandiq – other advantages
Balasausqandiq – other advantages FAVOURABLE GEOLOGY o Outcrops at surface, open pit, o Very large: JORC reserve of 23m tonnes from the first of five orebodies; local GKZ reserve of 71m tonnes o Total resource plus exploration potential 126m tonnes (middle of estimated range) o Visible geological cu
Slide 10: Balasausqandiq - economics
Balasausqandiq - economics These cost advantages translate into what is destined to become the world’s lowest cost and most profitable vanadium producer LOWEST COST PRODUCER o Balasausqandiq forecast cash cost of production: • $1.54/lb expected (costs apportioned between products) • $(1.20) (negativ
Slide 11: Kazakhstan
Kazakhstan An attractive operating environment ◦ An upper-middle income country (World Bank) ◦ Smooth transition to a new President in 2019 (World Bank) ◦ 25th (of 191) in ease of doing business (World Bank 2020) ◦ 10% income tax, 20% profits tax ◦ No requirement for government free-carry or local o
Slide 12: Appendix: Valuable by-products
Appendix: Valuable by-products Valuable by-products produced as part of the single processing route Carbon-silica flux Projected revenue Product Concentrated to make carbon black, used in the manufacture of rubber – a per tonne of ore ($/t) $12bn global market, Carbon-silica mix can be briquetted to
Slide 13: Appendix: Board and management
Appendix: Board and management Experienced team with proven capability BOARD MANAGEMENT Nicholas Bridgen Chief Executive Chartered accountant, lives in Kazakhstan and speaks Russian. 14 years with Rio Tinto group in various roles and 26 years’ board level experience with companies operating in the F
Slide 14: 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 Vanadium Pentoxide (7
Slide 15: 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 16: 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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