Share Name Share Symbol Market Type Share ISIN Share Description
Ferro-alloy Resources Limited LSE:FAR London Ordinary Share GG00BGDYDZ69 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 36.70p 35.60p 37.40p - - - 1,322 10:09:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining - - - - 115

Ferro-alloy Resources Share Discussion Threads

Showing 1426 to 1447 of 1450 messages
Chat Pages: 58  57  56  55  54  53  52  51  50  49  48  47  Older
DateSubjectAuthorDiscuss
16/7/2019
09:28
Good update today, but no news on funding. I've said before that I suspect timing of the next development phase will slip relative to plans, that's the norm for large mining projects.
tim000
19/6/2019
11:25
Very valuable and scarce resources, current share price is dirt cheap
ntbb
18/6/2019
19:46
A net 240k sales today but the share price goes up! Must be a significant buy order being filled.
tim000
18/6/2019
10:56
Tim - thanks for useful posts
njl53
17/6/2019
18:45
I've mentioned that FAR might benefit from a China effect (ie a boost in its share price due to producing outside China), which our one-time poster Ken Chung seemed to take offence at. This website (referred to before here, and which usefully shows the latest vanadium prices) mentions that vanadium prices are likely to move up on stockpiling, just as rare earths are being stockpiled. That might explain the current uptrend in the share price. And it should help with financing Phase 1 too. hxxps://www.vanadiumprice.com/
tim000
16/6/2019
07:21
I've had a reply now: Dear Tim, Thank you for your email and interest in our Company. I can confirm that our Group owns 100% of the Balasausquandiq concession via its 100% owned subsidiary, TOO Firma Balausa. We will be providing regular updates on progress and also on expected timelines as soon as we have any definite information to divulge. I’m sorry I can’t be more specific right now but if it is of interest you may certainly quote me in your forum. Kind regards Nick Bridgen
tim000
13/6/2019
08:25
I've heard nothing in response to my email to the company. That's the first time this has happened to me. It is possible that the company is busy negotiating equity and debt funding, which would explain its silence. (That might also be a factor in the share price decline since listing.) Or of course they might just be poor at IR! I tend towards the former explanation.
tim000
10/6/2019
12:07
Kazakhstan is very similar to Russia politically... A sham democracy which doesn't hesitate to beat or lock people up for their political views. I get the feeling that its leaders are slightly less nakedly kleptocratic than Putin and his cronies, and Kaz doesn't seem to be actively working to destabilise its neighbours. Nevertheless I wonder whether investors might be concerned about political risk in the country? https://www.theguardian.com/world/2019/jun/09/hundreds-arrested-as-kazakhs-protest-against-rigged-election
cyberbub
07/6/2019
10:49
From a fundamentals perspective, the Vanadium price looks like it may well be in the process of bottoming but we need further evidence to be sure that this has turned the corner finally. Should we see sharply higher Vanadium prices I would expect the price to respond accordingly.
jc2706
07/6/2019
10:48
If there was a longer trading history I would say that this is looking like a bear flag. However, I think that this would be unfair given the fact that the IPO was only a couple of months ago and it is impossible to draw any (technical) conclusions based on the data available. Just goes to show how abysmal the IPO pricing was though.
jc2706
06/6/2019
22:16
Awful. Lemmings and mushrooms only now.
ken chung
05/6/2019
23:35
If they need $100M for Phase 1, then on the normal debt/equity split of 70/30 they would need to raise $30M through equity. However, taking into account that the expanded existing operation is likely to generate several million USD per year in clear profit, perhaps the banks will allow them to go to 80/20? That would mean only $20M to raise = £15M, if that was at 25p then it would be only 60M extra shares or a 20% dilution. Minimal really. When Phase 1 is complete it is planned for 1Mtpa and FAR reckon they will make $100 gross profit (cash costs plus G&A) per ton = $100M gross profit p.a. They would be able to pay back the bank debt in less than 2 years! And then it would be all jam... and IMO there would be zero requirement for any equity funding of Phase 2, if they had that much money coming in? I think the investment case here is compelling. There is still a certain level of management/execution risk, political risk, and of course the V price... Have I miscalculated anything above? I need to read the admission document to understand what the situation is with DFS/BFS etc. Is this maybe why they might have had difficulty raising money?
cyberbub
05/6/2019
23:23
One small query I did have, is whether FAR own 100% of the Balu mining concession? I haven't seen anything to suggest otherwise, but I haven't seen anything to say it's 100% either. Might you be able to ask them to confirm this? Thanks!
cyberbub
05/6/2019
23:15
I’ll email the company and post the reply.
tim000
05/6/2019
23:09
Tim, they've been considering listing for probably 12-18 months. Perhaps an alternative explanation is that difficulties in getting major finance last year (along with much of the mining industry) meant that they essentially scaled back their initial fundraising and decided to raise a smaller amount to build up their cashflow, as a 'quick win' to get listed? The V price spike then rolled into town and meant they could raise the small money at a higher price = less dilution.... "spasiba bolshoi" the management will have said! (Albeit those initial investors will be hurting today). If so I would tend to agree therefore with your final point that perhaps the $100M is not super-imminent e.g. 2-3 months as I suggested. Although the presentation timeline was only published 2 months ago, it may have slipped a little. Nevertheless they will certainly be 'wanting/aiming' to raise that money in the next 3-6 months I would think. If the small rampup goes well then it will help to reassure investors that the management are reasonably competent IMO.
cyberbub
05/6/2019
23:03
Many thanks, that’s cleared up my misunderstanding of the planned development of the project. I agree with you on why the company couldn’t raise more equity capital initially. But that begs the question why didn’t they drop the price? As I mentioned, miners are struggling to raise money at the moment. I think that FAR will be able to raise the money they need, but I also think not to their desired schedule nor the desired cost.
tim000
05/6/2019
22:53
It seems to me that if there really is an 89% (!!) IRR then there should be no problem raising the money, assuming that investors trust the management to deliver. The only question is at what price will the funds be raised. A $100M market cap at the moment does seem a little excessive. Or maybe not? I suppose ya pays ya money, ya takes ya choice....
cyberbub
05/6/2019
22:35
Tim, "The strategy of the Company is to develop both the Existing Operation and the Project in parallel . Although they are located on the same site and use some of the same infrastructure, they are separate operations". (My underlines) FAR already have the money (the IPO raising) for the relatively small rampup of their existing processing facility (still a 10x volume increase but from a low base). This will continue (for now) to be based on purchasing raw materials from elsewhere, for processing. That expansion project is already underway and will be completed in the coming 6 months. Some of the works for this expansion will benefit future phases, e.g. connection to the high voltage line etc. Importantly this investment will be almost immediately cash-generative, which will financially support the bigger fundraisings. All of the documents and RNSes refer to "Phase 1" as being the first major phase of the "Project" (ie. actual mining of Balu-whatsit) - the $100M funding to ramp up to 1Mtpa (= 7,000 tons V p.a.). This is separate to the processing facility upgrade, and a lot of the money will be for setting up mining operations which don't exist yet. There will also be a full new processing circuit built from scratch. This latter might or might not eventually integrate/swallow up the existing processing facility, I'm not sure - but in any case, upgrading the existing facility won't be wasted, because it is a fully-functioning profitable unit in its own right. You can see clearly on the timeline on Page 22 that the timelines do indeed overlap, as they are independent. I initially also thought it seemed odd that they didn't raise the $100M at listing to go full steam ahead with Phase 1. I now think that perhaps there simply wasn't the appetite at the IPO price, which was clearly overcooked due to the rocketing V price? Major investors would have known that the V price was likely to drop from its spike, and just bided their time. Why should they overpay based on a silly 6-month spike? If there hadn't been that spike then perhaps FAR would have come to market at 30p fully funded for Phase 1? These are all just my thoughts/interpretations anyway. If you manage to get any clarity direct from management, it would be appreciated if you could share it. Clarification of development phases is not any price-sensitive info IMO, so I don't see why the company would have a problem with that. NAI DYOR etc
cyberbub
05/6/2019
22:07
The first stage of development is to reach 1500 tonnes per annum. That project is currently ongoing and I believe will complete over the next 9-12 months. This stage is fully funded. The next stage, “Phase 1”, will require additional funding (circa $100 mn as you say) to take production to 5600 tonnes pa. Is that your understanding too? It would be non-sensical for these two stages to overlap, especially as I believe that “Phase 1” is dependent on the initial increase in production capacity to 1500 tonnes.
tim000
05/6/2019
21:50
Thanks, that’s interesting, I’ll have to look at this again more carefully. If that’s the case, though, I’m surprised there has not been more discussion of funding in the company’s recent annual results. Moreover, it doesn’t make much sense that the company would raise so little in the IPO and then so soon after seek another funding round. I’m still inclined to believe that another funding round is some way off. I will probably seek clarification from the company directly.
tim000
05/6/2019
21:37
Tim000 I don't think you're correct.'Phase 1' is the $100M requirement, to reach 1Mtpa (though they also slightly confusingly refer to it as 'Stage 1'). On page 21 they say 2020 start date.On page 22 of the presentation this is confirmed, as they show Phase 1 design happening now (H1 2019) and then construction in "2019/2020" with commissioning in H2 2020, possibly only 15-16 months away.Therefore, if they are sticking to that timetable, they must be aiming to raise the $100M in the next 2-3 months maximum?The question is purely at what price they will raise the money, will it be at a discount, say in the 22-24p range, or will the very high IRR of over 90% (at a V price of $7.50) be enough to get it away around the current share price of 28-30p?NAI
cyberbub
05/6/2019
20:11
Page 21 of this presentation confirms next year, and by implication after the initial ramp up of production is concluded. That further suggests H2 2020 for the next round of funding. This is the very definition of a buy and hold stock, so not worth worrying about short-term volatility in the share price. Most explorers are suffering a terrible time due to a lack of funding to advance to mining. I guess however the unique properties of this project will make it an exception. And it helps a lot that they are already generating cash, and are self-financing. hxxp://www.ferro-alloy.com/en/news/FAR%20-%20Corporate%20Presentation%20-%20%20update%20March%202019.pdf
tim000
Chat Pages: 58  57  56  55  54  53  52  51  50  49  48  47  Older
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