🔥 RNS broken down - 10 bagger - you decide 🔥4 Nov 2025 14:04
Copied 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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