RE: Bargain5 Nov 2025 11:21
Posted yesterday and nothing changes - 40-50p zone easy.
Level 2 fully primed and placing price cannot be hit given the demand from II's, Directors and VBR.
‼️ Copy and Paste from ADVFN ‼️
FAR announced that their giant vanadium mine in Kazakhstan (called Balasausqandiq) is suddenly cheaper to build, more profitable, and easier to finance than anyone thought a month ago.
Here’s what each bullet of the RNS means:
FEED deal with CC6
They hired China National Chemical Engineering Sixth Construction (CC6) – a huge Chinese builder that has already constructed >50 vanadium plants worldwide.
“FEED” = the detailed blueprint stage (think architect’s final plans before digging starts).
This locks in the builder early and gives confidence the numbers are real.
Construction price slashed to US$261m
Old plan (Feasibility Study, Oct 2025): total build = US$520 m.
New Chinese quote: US$261 m for the same plant (minus two tiny uranium/moly bits).
Add the missing bits → you only need US$311.9 m in total.
40 % cheaper overnight → far less new shares or debt needed.
Profit numbers now look amazing
IRR 31 % = every $100 invested returns $31 profit per year (after tax, no debt).
NPV US$932 m = the mine is worth almost $1 billion in today’s money (8 % discount).
Compare: old study had IRR 22 % and NPV $748 m. Chinese savings = +$184 m value.
85 % of the build is already pre-financed
A Chinese bank (Bank of Communication, Hubei) wrote a letter offering US$221.8 m loan to CC6. That’s 85 % of the $261 m construction bill. Loan is “conditional” (needs final sign-off), but it’s basically a green light.
Sinosure could make the loan almost free
Sinosure = China’s government export-credit insurer.
If they back the loan, interest rates drop to ~2-3 % and the bank takes zero risk.
Think of it as Beijing subsidising the project because it exports Chinese steel/jobs.
Dare I say - a megabagger in the making here?
🔚
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