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Morning all,
Results very much as I expected and clarifies the need for the recent placing / Bond issue. Still promising " Jam tomorrow ", but that is in reality further down the line than they have cared to admit. The current pilot scale operation which produced 152t of lower value ammonium metavanadate in 2019, is yet to convert to V2O5 sales, which with improving Vanadium spot pricing would improve income, but the relatively high cost of raw material "concentrate" feedstock,will continue to squeeze margins. They urgently need to get the 110Kv power installed to have any chance of completing the pilot ramp up, so as well as achieving the required Project Financing, my view is to expect further Equity raises in the short term ( which I would expect to be at the recent 6.5p per share level ). The real "jam" here will only come with the main Balasa Project, which could imo take 2 years to achieve stage 1 of that. Disappointing to find out that the current DFS only covers stage 1 of that project. So for me, still like the resource but has to be bottom drawer, with no further buying above 7p until pilot ramp up completed.
Morning all,
The 2019 year end figures have to be published before the end of this month ( 1/5/20 RNS ), but the issue of Bonds required an RNS sooner. Obviously good news getting back on track now that both Pyro and Hydromet circuits are back on line. What remains annoying as always is what is not mentioned in the RNS's :- what progress on Kv line installation, why were the bonds issued on the Astana (AIX) and not on LSE? These last 2 raises are imo to keep the lights on, but if so why not explain that. I for one would have liked the opportunity to subscribe for the Bonds and get a 7.5% coupon in doing so. I intend to email the Company to query this, and to answer your question Hazbeen, I normally email the Company direct and St Brides who as PR advisers, should ensure that investors enquiries are answered. I continue to hold as I believe in the assets but the performance of the "Management", leaves a lot to be desired imo.
Afternoon Hazbeen, you are correct the current prices are :-
FeV = U$ 28.0/kg China and U$ 24.5/kg Europe
V2O5 = U$ 6.50/lb China and U$ 5.45/lb Europe.
With regards to your query about which values FAR use in their forecasts, I'm not sure if it is mentioned anywhere to check. I'm still trying to get a progress update on the pilot ramp up, without much luck. I have never been in a share that treats investors as bad as this one, when it comes to keeping P I's informed, and I know that is saying something, however for the time being I continue to live in hope more than expectation.
Good afternoon all,
Thank you for the link turnkey17, I thought it was an excellent write up. I've only recently added HUM to my portfolio alongside my other "goldie" (PUR), but having researched it and watched the Crux Investor interview with our CEO, I think that the potential here is excellent going forward. I'm looking forward to contributing on here, regards Roy.
Morning Hazbeen,
If I remember correctly, I think NB has mentioned all 3 possibilities in recent interviews, particularly because the Company are not encumbered with any existing debt/royalties or offtake agreements. My view is that because of the relatively low ~ U$ 5 million requirement, it could be any one of those. Especially when you consider the resource location ;- on the alluvial plain south of the Great Karatau Range ( nearest village - Aksumbe) refer Fig 3-2 page 33, Competent Persons Report. The location ( via gravelled 800m access road ) is close to the main Kyzlorda - Shymkent highway, which puts it in a good location for trading into China as well as Russia and Europe ( Belt and Road Initiative ).
Good Afternoon all,
Just bought in a small amount and looking forward to contributing here when I get to know more.
Hi all,
I have to agree L2, the search for a reason leads to the obvious conclusion in my opinion, that as T2B says there is probably something else in the background, hopefully an off-taker for the V2O5 / Ferrovanadium, or even someone interested in the future co-products. Interesting times here and hopefully we wont have to wait long to findout.
Afternoon all,
I can't see a logical reason for such a small raise at such a heavily discounted price. If the balance required $4.75M to complete the initial ramp up is to be via an offtake partner, then fine. If it is to be via another Equity raise, then has this discounted price set the raise level - I hope not as we are obviously worth more than that. Time will tell, but I'm hoping that it's by the offtake route. So much for my buy yesterday at 10.5p, good job I'm in for the long haul here.
afternoon all,
Looking positive at the moment, we need to get the 110kv power connected asap to enable the pilot ramp up to the 1500t/yr rate asap, and announcement of a strategic "Partner" in June should see some sort of re-rate ahead of the FS. The metrics of the projected operating costs and the potential of the co-product credits in the deposit make this an attractive investment in my opinion. Added another 10k shares to the portfolio, GLA.
Afternoon all,
Interesting Vanadium market analysis report ( with thanks to Drifter on BMN ) :-
https://media-exp1.licdn.com/dms/document/C4E1FAQHq1EvS_4PRAQ/feedshare-document-pdf-analyzed/0?e=1589277600&v=beta&t=-3GjH8Qq8aUVEfv1jezkzD9vwVnzMsSsF7GYtv7_DMM
Afternoon all,
I came across this Proactive interview with Mining Capital's Alastair Ford, which may be of interest :-
https://www.proactiveinvestors.co.uk/companies/news/919084/ferro-alloy-resources-advancing-full-feasibility-study-on--highly-attractive--vanadium-project-919084.html
afternoon all,
I am another Bushie who has now bought in here also, primarily as part of the " vertical integration" strategy. I have to say, that having listened to, and been impressed with all the webinars / presentations by Larry and Matt, I believe that Invinity has got itself quality Management to take this forward ( like BMN ). I also think that further additions to the vertically integrated "club" in the coming months / years will strengthen the position of Invinity Energy as a major supplier of Energy Storage solutions.
Good afternoon T2B,
Thanks for that info, I read that on the BMN QI update. Good news as FAR has sold into China previously. Todays Vanadium pricing :- V2O5 - EUR $6.75/lb, China $6.30/lb.
FeV80 - EUR $26.5/kg, China $27.5/kg.
Afternoon all,
Good to see a response this morning. On the whole, it could have been a lot worse. Whilst progress has not been to schedule, it is understandable given the Covid situation, especially the lack of electricity contractors on site. Whilst this connection is vital to complete the ramp up to 1500 t/yr from the pilot plant, at least the high grade concentrate circuit continued at increasing rate, putting much needed $ into the coffers to keep things going. The shift team who stayed on site deserve thanks for that effort. Financing progresses towards a revised June deadline, with NB re-iterating the desire to minimize dilution for shareholders. Once the Uranium testing returns in May, our samples will then be able to be dispatched for testing, which enables the DFS to resume progress. For anyone investing in this Company, this is not a get rich quick trader's share, as realistically it still requires 2-3 years to get to full production assuming financing is available, however imo, the resource base and cost structure of the process, make the wait acceptable. In the meantime the Company like many others out there need to vastly improve communications and Investor Relations by employing someone to do it properly. A couple more little top ups for me today at these low prices, Keep the faith Hazbeen, it will come good imo.
Morning all,
Having sent an email to Crux Investor to see if they could elicit a progress update from the Company, they have posted the following article which you may find interesting :-
https://cruxinvestor.com/opinions/ferro-alloy-resources-group-lon-far-time-to-roll-up-your-sleeves-and-show-us-what-youre-made-of/?unapproved=673&moderation-hash=21526ab734f757836773a36cb38af9a1#comment-673.
Morning Hazbeen,
Hope everything ok with you also. With regards to the lack of information or progress report, I agree with you, it is easy to become cynical and they must do some PR work soon, or they will lose the retail investor share-base they already have. The current "management style" is totally unacceptable it is the resource potential that is keeping me here. Ignoring my emails requesting an update is poor form in my book. I feel inclined not to add anymore here, until they get their act together, the one redeeming fact at the moment, is the stability of the share price. I'll continue to watch regularly, more in hope than expectation. Hope everyone on here keeps well.
Morning Hazbeen, thnks for the link to the article. The price of Vanadium products is now back to the area where it has typically been over a number of years according to NB in his Crux interview. Vanadium Redox Flow Batteries have a number of advantages over mixed metal variants as well as more safe than Li-ion types. In my opinion, the near term niche for this Company, will be to get to significant V2O5 and FeV80 production capacity, because with the co-product credits once online, we will have a considerable cost advantage over other suppliers, especially if China start to play games with substitution of other products to reduce costs, as they did with Nickel Pig Iron vs Ferro Nickel a few years ago. To be fully competitive in the VRFB market, they would need to be fully integrated with Battery manufacturers/suppliers as well as pure grade V-electrolyte production. This space is already extensively covered by Bushveld and to a lesser extent Largo, who are already several years ahead in the game. However, my view is that this Company has a great future supplying products into the steel industry as well as capitalising on the various by-products from this unique deposit.
Morning all,
It is about time we had an update on ramp up progress and effects of covid virus (if any). I have tried on several occasions to elicit a response via email to both Company and it's PR advisors?, without any luck, so if either of them visit this BB, then silence is not golden in this PI's view. Good Companies keep their investors informed.