Member Info for GloucesterR

This share requires patience. We all know the potential but it is a slow build up. The company , on the ground, is proving the resource and 3rd party analysing the generic electrolyte and Carbon Black to complete the BFS, Externally with the financial and professional support of VB the company structure is being reconfigured to streamline and prepare itself for what is to come, that is to be the wrolds largest and cheapest producer of Vanadium and generic electrolyte. The free float is tiny and we are under the radar which means share price swings will be magnified. I genuinely believe Ukraine is a red herring. without getting into the politics, Ukraine is looking West and as shown recently Kazakhstan is looking East.

The next two to three months should see the building blocks to confirm FAR's belief that it will become the one of, if not the, largest and by significant margin the cheapest producer of Vanadium for the conventional steel market and the largest and lowest cost generic electrolyte producer too. Add the significant value of co products such as Carbon Black etc... FAR will have the huge advantage of an array of separate income streams. I am really hoping that management will take the plunge post BFS to announce stage 2 will become the base case and knock out competition and allow the Vanadium (electrolyte) price to fall somewhat to underpin the nascent Battery storage market. Yesterday I saw two conflicting articles one announcing a doubling of UK's offshore wind capacity with auction in Scotland and at the same time a drop in over wind speeds , pushing even harder the case for some form of storage. Absolutely breathtaking potential here.!

Good to see a bit of sense and confidence returning!

At a guess I would say 20% or so.

The free float is tiny, which punishes falls, as someone else pointed out, but benefits when confidence and sense returns.
The key is the drilling results and then the Black Carbon feedback to really give a flavour of confirming potential. I think the original $1bn and $2bn NAV,s will be revised considerably upwards and also I cannot see management waiting to self fund stage 2 when the market is crying out for low cost Vanadium to support the early stage Battery market. Stage 2 production will also have the benefit of knocking out competitors with considerably higher cost bases.!

Kaz isn,t a stable democracy that is suddenly facing a civil revolution with the intention to nationalise all private assets. It has been a pseudo dictatorship since time began. To employ Tony Blair as your PR guru just illustrates how low it has to go to gain credibility!! Kaz is rich in primary resources. It supplies 40% of the world's uranium. It has a significant number of global multinational companies invested. The key is any communication from the company that drilling operations have been suspended. FAR is fortunate that the Mine is some significant distance from its nearest city (70km). The BFS as we know will be eyewatering and regardless of political risk the ROC makes this a lifechanging investment.

I don,t think they suspended Apple or Tesla shares after the Capital Riots in the US a year ago!! Kaz has a long history of corruption and repression. Sadly much of the world is going that way. The key is that FAR is able to continue its operations and particularly Resource drilling and that the second team are able to enter the country (RC drilling) in February safe and unhindered. KAZ is a huge country and underpopulated. The Mine is in the wilderness 70km from the nearest civilisation.! This is not a short term share but one that will see multiples over the next 12 to 18 months regardless sadly of the human rights abuses.

Agree Cyber. The funding I understand will be circa $70m with equity circa $40m with cost increases for Stage 1. The key to the funding will be Sir M and Vision Blue. I suspect the BFS will show that the ROC is potentially 100% on stage 1 which will mitigate any political risk. Key is not the funding but the non disruption of drilling and BFS planning which , due to the remote location should be isolated. Sadly it is a general fact that most raw materials are found in undesirable political places! Including the US!

As someone mentioned earlier the free float is absolutely tiny.

Agreed with your comments. Really interesting interviews with MB over recent weeks. BFS for phase 1 I think will come in qtr3 as opposed to Qtr 4, as MB was expecting drilling to take 6 to 9 months but looks to be completing end of Q1. The co products such as Carbon look to be really valuable, As MB says the project looks attractive without Vanadium!. So I suspect that the cost of production could indeed be highly negative. The key issue with Battery development and role out is cost . If FAR's Electrolyte production cost is highly negative through co and bi products it can supply the naseant industry and knock out all competition. I think that $1bn and $2bn for the 2 phases will end up being really conservative!!

Daisy Its Directors Talk

https://*************.net/ferro-alloy-resources-making-good-progress-on-balasausqandiq-vanadium-deposit-interview

Another informative ( but sadly bit mind numbing for new investors ) interview. Key takeaway for me is that Phase 1 BFS is going to come out a short time before Phase 2 BFS, which is great as staggered . Also Significant amount of work and confidence in Bi and co- products, so very methodical. Good news that drilling campaign will be short with quick turnaround and only aiming to prove up enough to support phase 2 for 20 years. So very reassuring interview , I have a gut feeling that stage 1 BFS will be out 3rd qtr 2022 and management sensible tempering expectations as to time horizons. I would be very worried for any competitors in the Vanadium space!

A really "Thinking man's" interview ! Think Zac Mir fell asleep halfway through or went off to make a cuppa! For those in the "know" it just really confirms all expectations that this will become a monster, steady and absolutely massive. The introduction of Carbon as a co- product is just a really nice addition. Great to hear reconfirmation that BFS will fully incorporate phase 2 as opposed to partial.

https://www.**********.co.uk/articles/traders-cafe-with-zak-mir-nick-bridgen-ceo-ferro-alloy-resources-e479c41

Thanks Trojan. Really good interview. MB incredibly upbeat (for him!). So Carbon and other Bi Products represent approximately 20 to 30% of anticipated turnover. This will absolutely transform and already unique BFS. The Vanadium cost of production of approximately $1.50 will , with offset by bi Product become a negative. Meaning , simply that any revenue from Vanadium will be Profit! FAR can set the Vanadium price and still be in Profit! It seems that the combination of MB.s technical and step by step approach combined with VB's financial muscle and contacts could make FAR an absolute life changer for investors. I think the old NAV figure of $1bn and $2bn will be revised upwards quite considerably with the input of Bi Product revenue, particularly Carbon. It will be interesting re funding for the equity portion of phase 2, which I believe will become the new phase 1 post BFS, My hope is that , with such a huge Gross profit margin, FAR will go back to MB's original plan of an offtake agreement or even streaming to negate the additional dillution risk. To have such potential combined with financial support already in place is pretty unique. Just the proverbial patience required, but with drilling now underway timelines are on track!

M5. I agree entirely with your figures . The production cost is circa $1.50 so an 80% gross profit. This is without taking into account the revenue from Bi Products which could negate the actual cost of production.

The key takeaway for me apart from confirmation of time lines now with the expanded BFS is the clarification that a full phase 2 is included as oppose to partial. I believe post COP26 FAR will decide to frog leap phase 1 and make the commitment to phase 2. The significant cost advantage over competitors allows for a huge undercutting of other primary producers , allows stable and attractive offtakes for both steel suppliers and the VFRB.s. The current share price reflects the hiatus we will be in for the next 6 to 9 months , but I think we can all live with that for the imminent $2bn plus NAV post BFS this time next year. Add the fact that all infrastructure in place should be (in mining terms) a relatively short period to first production.

What we have been waiting for! Couldn,t be better! Drilling started and comprehensive testing of process and wide range of Bi Products. Excellent!

Just had email correspondence re Drilling. Have had reply that formal announcement shortly. So really good news.

Dan, Apologies but I believe BFS more likely 2nd half of 2022, but will now, it seems incorpoerate phase 2 as opposed to phase 1 and parts of phase 2. The delay is slightly frustrating but the prize will be that much bigger. As SP28 has pointed out on a number of occasions the Gross profit will likely be circa $350m and NAV well in excess of $2bn or around £2.50 per share. Having said that this valuation is on very conservative multiples and Vanadium price. The key consideration is the very low cost of production which I suspect with the work being undertaken with bi products should come in at zero or even negative. This is huge and not acknowledged by the market. FAR will become the swing Vanadium producer and could go all out and produce excess product and basically decimating the profitability of competitors. Sir Mick is well known for not taking prisoners and I suspect this will be very much on his mind as he looks beyond the immediate demand for Steel and towards a low cost supply to support the bourgeoning VFRB market.

Well worth a read. This is the quote that got me " If Britain bought all the batteries the world produced in the last 10 years it would only supply electricity for two days before the lights went out!".. One of key conclusions is massive investment in battery storage.