Ferro-alloy Resources Share Discussion Threads

[cyberbub] 18/1/2021 12:15

PS the divorce settlement is irrelevant for long term holders. Last year's RNS said it was a "partial" settlement so NB may well be looking to raise only £1M say. He's more likely to sell any shares to a long-term insti as implied in that RNS, which would have no effect on the share price Even if he decides to sell say 6M shares into the market at 15p, as long as there is demand he will get that away over a week or two. We've had volume of 3M+ in the last few days. Even if liquidity is limited, selling 2% of the company would only cause a short-term dip. It's really not a problem!NAI DYOR etc

[cyberbub] 18/1/2021 11:34

It's in an RNS they issued - DYOR

No figure was mentioned as it is only the first hurdle, but it's a positive step nonetheless. I expect detailed negotiations to start soon.

[jailbird] 18/1/2021 11:28

FAR has already got first approval for a loan from the Kazakhstan Development Bank.Where has this been mentioned ?And how much is the loan ?

[cyberbub] 18/1/2021 11:12

It might sound like a lot to people who don't know mining, but $100M is a modest amount of funding for building a mine. That's because the company have already got (or will shortly have) a lot of the infrastructure already in place, because production costs are low, and because they're starting with only a medium-size 'Stage 1' mine. They've also spent several years designing the technical processing of the ores, experimenting on their current feedstock. They've even patented one of the processes!

FAR has already got first approval for a loan from the Kazakhstan Development Bank. Out of the $100M, the amount to be raised from actual equity will be probably no more than $25M = £20M. The rest will be from loans and offtake payments.

Raise £20M at 20p (pessimistically - I would expect it to be higher) and that's a maximum of 100M extra shares. No problem at all, if it kicks off development of a global-scale mine! Remember that Stage 2 is planned to be fully funded from the cashflow of Stage 1 = no further dilution.

Other big advantages are that the Kaz Govt doesn't demand a freebie equity stake in mining businesses (as they usually do in Africa), and they have got a tax holiday until 2026 I think it was. The mining licence has been extended until 2043.

NAI DYOR

[sherlockholmesuk] 18/1/2021 10:48

🤦‍a94;️. That’s a lot of if/but/maybes! FAR has
to raise $100m US in order to build main processing plant (2 year project), keep the existing pilot mine running, pay CEO his $250,000 salary and settle his divorce settlement of $5m US.

Ask yourselves this simple question:

How much money has FAR raised since its
float in LSE?

Not happening is it? Get honest!

[driver101] 18/1/2021 09:36

Still waiting for my order to be filled.

[rmart] 18/1/2021 09:06

At least its blue ! Lets have some news now to kick off the upcoming 17 bagger.

[cyberbub] 16/1/2021 21:24

It's maybe being optimistic, but frankly I would hope in the fullness of time, ie when Stage 2 is up and running in about 4 years (assuming all goes to plan which is never guaranteed in the stock market!), that the share price could be 2-3X that 171p target. If the business case remains strong then I intend to still be holding then.

And looking at the big growth in volume since October and the 'flag' chart pattern around 10p, I think there's a strong likelihood of a breakout in the coming weeks. Perhaps the catalyst could be the publication of the full BFS, expected in probably the next 2 months?

When Mr Market sees that the company is (finally!) cashflow positive from the small operation, making a few mill profit per year so no need for any ongoing funding, has its BFS and is closing in on funding for the bigger Stage 1 operation's capex, I would expect the market cap to re-rate to at least $100M (approx 25p), possibly higher.

GLA NAI

[rmart] 16/1/2021 17:01

Lets face it we would all be happy with half that ! easy peasy back to IPO of 70p from here imo.

[rmart] 16/1/2021 14:51

welcome cgod, i'm new in this share too and agree it seems extreemely cheap. Took a decent holding (in my book) and want to see it at IPO price or avove this year.

Someone said there is a broker target of £1.70 but i cannot find it. If anyone has a link please share.

[cgod] 16/1/2021 13:56

Hi guys, new to this company, I think it has mega growth going forward, looking to invest next week.

[rmart] 16/1/2021 13:47

NEW THREAD HERE KEV.

[rmart] 16/1/2021 13:47

NEW THREAD ABOVE

[rmart] 16/1/2021 13:46

NEW THREAD ABOVE

[rmart] 16/1/2021 13:46

coolhand kev go here

THIS THREAD IS CLOSED.

[rmart] 16/1/2021 13:43

cyberbub, lol, sorry about that, i dont know where my head was. Anyway here we are now and hopefully onwards and upwards.

[goodgrief] 16/1/2021 13:40

Nice work!

[cyberbub] 16/1/2021 13:05

Finally hopefully we've got a thread to centralise on?!

[cool hand kev] 16/1/2021 12:35

Hi rmart Could you possibly add a chart to the header? Thanks in advance

[driver101] 16/1/2021 12:15

Cyber

Can you go on the app please quick question
Cheers

[goodgrief] 16/1/2021 12:10

Clicking that link...

"This premium feature requires a subscription upgrade."

[driver101] 16/1/2021 10:06

rmart

Cheers for the new thread, I’m new to this stock only buying in on Fri after a heads up. I did notice there was to many threads so I’ll stick to this one.
Cheers.