Ferro-alloy Resources Share Discussion Threads

[jailbird] 23/9/2022 08:41

That sounds plausible Let's see ....but either way NB needs to go eventually

[ttlance] 23/9/2022 08:25

Totally agree he needs to be replaced however will VBR see this as a lost cause and cut their losses. Probably not, as they wouldn't want to do anything drastic prior to the works currently being done to the pilot plant and the FS. It really hangs in the balance, as they have invested an amount which isn't significant but then isn't chicken feed. My feeling is that if the pilot plant isn't profitable by the time the FS results are announced then VBR will call it a day. If it is profitable then VBR will continue with the investment but replace NB soon after the FS results.

[jailbird] 23/9/2022 07:54

VBR must be fuming as NB sold millions at 30pIt has in effect gone back to pre-VBR prices NB cannot deliver a pilot plant , what chance a big main plant can be constructed to production , and in 2 phases We are talking years away Need NB off this company's board .His track record for failure of progression causing dilution is known

[ttlance] 23/9/2022 07:38

VBR still have an option to invest at 9p which they didn't take up, they instead took the option to dilute their holding which to me doesn't show confidence. VBR certainly aren't going to throw money at this if they see it as a lame duck whilst trying to get to the point of production. This text was taken from Sept 2021 RNS, which clearly states that there was sufficient funding 1 year ago to get the pilot plant profitable and complete the FS(b) Financing risk:

The Company is in stronger financing position relative to the prior year. In March of 2021 the Company signed an investment agreement with Vision Blue Resources. Under the terms of this agreement, investment of US$10.1m has already been made which is expected to be sufficient to finance the completion of the expansion of the existing plant and the feasibility study.

[jailbird] 22/9/2022 17:35

Correct if I'm wrong, but weren't VBR supposed to give more money by means of a 9p subscription as part of the agreement?

Because as you also say, this did not happen.

This funding has already diluted their existing holding now, so VBR took little part in this raise and decided against averaging down...

A big red flag for me, and you maybe right VBR are losing confidence in the venture.

NB likes to talk about the by-products, but these all his pie in the sky overblown ideas

[ttlance] 22/9/2022 15:23

NB was never one for coming across particularly well when answering questions however his whole demeanour has changed in this latest interview, he appears less confident. Probably due to getting a rocket from VBR to get his act together and also due to the supply issues being much worse than anticipated. With the Ukraine war likely to drag on probably post 2023 this could potentially derail any profitability. I see Andrey Kuznetsov's title changed a few months ago on Linkedin to Commercial Director, obviously a drive to improve the supply issues they have been experiencing. There has been a lot of shares changing hands since the RNS which is also a little concerning. The more I look into this the more I'm thinking the negatives outweigh the positives. We all know the vanadium is there and this will come out in the drilling results next year, so this is already baked into the price. I remember NB bigging the RE elements not long ago and this was knocked on the head, will the same happen to the carbon, who knows. But for me the focus is on the pilot plant being profitable, if it's not then there will be further dilution and VBR won't entertain the investment going forward. I feel VBR are already feeling cautious about FAR's future, as if they were that confident, they would have stumped up the cash themselves. I've been following Nextsource Materials (Canadian Miner) VBR have also invested in and their progress seems to be much more advanced from a profitability point of view. They are likely to generate a small profit from the phase 1 mine they are currently commissioning which will fund the larger phase 2.

[jailbird] 21/9/2022 11:44

@SOS - Depressing commentary from NB as always...


@TTL - good points in post 167

Mick Davies only there as an investor..not much input on Executive Board level it seems

They will sell up if NB does not pull his finger out

His has blown $10m and still has a cashflow negative plant and not close to FS completion yet

[ttlance] 16/9/2022 10:21

Welcome Megaman. The current share price is a very good risk reward price. If VBR are still invested in 2 years' time, then I believe the price would be at least double from where it is now. I sense having read the RNS a number of times that VBR is losing patience with NB and his team as they have been promising profitability now for some time (especially after considerable capital investment), this hasn't materialised hence the fund raise. I can't imagine VBR would be happy with further dilution in 9 months' time resulting in their potential future investment being further eroded. Bearing in mind there is already a planned dilution based on VBR's original agreement which takes the number of shares in issue to circa 500million, that was before yesterday's announcement of a further 60 million shares being issued. This board is a little more balanced compared to LSE, there are quite a few investors there that think this is a road to riches just because of Mick Davis. As I'm sure you are aware his company has invested in numerous companies and not all of them will be successful

[megaman2] 16/9/2022 09:05

Bought in here today having sold out of bmn a few weeks back. Not sure I believe the company about its $1.4 MTV per lb v2o5 but directors and nick are putting their hands in the pocket which is more than as ever happened at bmn...funded now for the immediate future I can see 18p Gain short term and who knows what in the future ..clearky geopolitical territorial risks but it's backed by a n aspirational story and directors with their own skin 8n the game and the ability and history to deliver funding . Good luck all.

[ttlance] 15/9/2022 21:18

hxxps://eurasianet.org/china-warns-against-meddling-in-kazakhstan-ahead-of-putin-meeting

[jailbird] 15/9/2022 20:45

I am totally confused now. Looks like VB did not take another right to subscribe and inject money at 9p.

Instead a fund raising took place and VB only taking up if it falls short.

It has become a bit of typical process, as I expected it would.

The current crop of money invested by VB was supposed to used to complete the FS.

We are still some way off that, and who to see there may not be further delays, Covid still and war being used as excuses I see.

FFS the FS should not be impacted by all this much.
I guess the impact of the war because on raw materials routing was already mentioned as a problem, so no surprise there.

Not impressed much by the pilot plant either....talk of it being cashflow positive has been ongoing of few years now. It is embarrassing really.

Not buying any here for some time yet. See what unfolds next year.

Dilution not all in safe hands this time, so will be some churning I am sure

Have I called this right over the last 2 years?...I think so

[jailbird] 15/9/2022 20:38

All Shares issued as part of this transaction will rank pari passu with the existing ordinary shares.

Further investment rights to VBR of up to US$9.5m

VBR has also been granted rights, at its election, to acquire up to a further US$9.5m of shares at the Issue Price of 9p per share through the extension of the CLN or issuance of Shares by the Company (the "Further Investment Rights"), based on the following terms:

a) Up to US$7.0m within a 3 month period following the later of the receipt of certain consents in Kazakhstan and Admission ("Further Investment")

b) Up to a further US$2.5m after completion of the FS ("FS Investment")
In the event that VBR acquires the full US$9.5m of shares under the Further Investment Rights outlined above, a further 75,819,248 shares will be issued to VBR and VBR's shareholding would increase to 91,781,196 shares in FAR, equating to a final investment shareholding of 21.29% of FAR's enlarged total issued share capital at that time.


Construction funding rights:

In addition to the Initial Investment and Further Investment Rights outlined above, VBR will retain the right to further invest up to US$30m in FAR based on pre-agreed share prices. These rights will only be triggered in the event that FAR launches a process to raise capital for the construction of the Balausa Project and where the Initial Investment and the Further Investment have been exercised.

A summary of the terms are outlined below:

a) Right to purchase US$10m of additional shares in FAR at a share price of 25.0 pence per share, equating to a pre-money market valuation of US$150m, at the agreed exchange rate

b) Right to purchase US$20m of additional shares in FAR at a share price of 78.0 pence per share, equating to a pre-money market valuation of US$500m, at the agreed exchange rate

This structure will support FAR in raising the appropriate balance of debt and equity capital to advance the Balausa Project to construction and production and allows VBR the certainty that it will have the ability to ensure the potential equity investment necessary for the Balausa Project to enter construction would be in place for the Company at the time that an investment decision is taken to proceed with its development.

[cyberbub] 15/9/2022 20:16

I'm not entirely surprised to see a further fundraise. Personally I'm a LTH so if they need the money to make us all rich, they need the money....Good news:VBR still standing by us and investing a good amount.Only 70M shares, not great but hardly a disaster.Directors participating with £0.5M, which is not chickenfeed.Bad news(?):The placing RNS says they are going to amend the terms of the VBR 2021 agreement, but it's all a bit complicated/unclear, can anyone work it out?

[ferrochelli] 15/9/2022 17:50

Pleased with the rapid process of events of today.
Sir Mick Davis on twitter is very confident.

background link on this company




If you participated, well done.
Far will end up £1.00-£1.50 in the future

[hubert18] 15/9/2022 12:44

Sounds to me like they cannot get enough of these shares. Very short window of opportunity. Subscription closes at 2.00pm.

Finish above 14p.

[hubert18] 15/9/2022 12:42

Result of Placing and Subscriptions
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium mining and processing company with operations based in Southern Kazakhstan, is pleased to announce that, following the announcement earlier today (the "Launch Announcement") regarding the launch of a proposed placing (the "Placing") and direct subscriptions (the "Subscriptions"), the Company has raised gross proceeds of GBP8.2 million (approximately US$9.5 million) through the issue of an aggregate of 68,424,084 new ordinary shares of no par value ("Ordinary Shares") in the capital of the Company at a price of 12.0 pence per Ordinary Share (the "Issue Price"). The Placing and Subscriptions were supported by both existing shareholders and new investors.

Earlier today the Company also announced the launch of a PrimaryBid Offer for up to GBP0.4 million (approximately $0.5 million) which is expected to close at 2.00 p.m. today.

[hubert18] 15/9/2022 12:25

RNS OUT 12.20pm

Fast tracked
Placing completed successfully.
£8m raised......:)))

[hubert18] 15/9/2022 09:19

If the Ukrainians continue and start to gain further ground. 40% chance the war ends by end of the year, according to reports, I mean the special operation.

Putin could be displaced. Looking weak compared to 6months ago.

[hubert18] 15/9/2022 09:06

Added 91k and will add more at 12.5p:))

Confident Far is going back to 30-40p-50p.

Solid business

[ttlance] 15/9/2022 08:54

There's a lot of inconsistencies with these recent releases when compared to previous ones. I can't see how Covid can be used as an excuse anymore. I understand the war in Ukraine impacting the business, but again previous announcements stated they are looking for alternative supplies outside of Russia which won't impact the business. NB is starting to lose credibility.

[mesb48] 15/9/2022 08:41

Well at least we know VB are standing by the company, so that answers that question. But the narrative is quite clear some of the supply chain issues are not yet resolved, so it’s hard to make any sense as to when the company will generate cash flow.

[jailbird] 15/9/2022 07:41

Oh dear !A long time before this will over 20pMight see sub 10p firstThe pilot plant forecasted revenues is not saying buy me either .Can they even achieve break even for full year

[cyberbub] 13/9/2022 11:45

President Tokayev seems to be trying to liberalise the political and economic situation in Kaz, which has to be good for business if he succeeds. As you say, the big question is whether Putin will see a more liberal and democratic government, as with Ukraine, as a direct threat to his power.I also expect that VBR will probably renegotiate their planned 75p investment tranche down to say 40p, given the share price progress in recent months. But it will make little difference to shareholders in the scheme of things, assuming the project does go ahead. I'd much rather they renegotiated than walked away, let's put it that way!Remember, the ultra-cheap vanadium is still there in the ground!NAI etc