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 Shares Traded Last Trade
  0.50 4.9% 10.70 3,633,348 16:35:03
Bid Price Offer Price High Price Low Price Open Price
11.00 11.20 11.45 9.95 10.15
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 1.80 -2.52 -0.83 35
Last Trade Time Trade Type Trade Size Trade Price Currency
17:08:22 O 100,000 11.19 GBX

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Ferro-alloy Resources Daily Update: Ferro-alloy Resources Limited is listed in the Mining sector of the London Stock Exchange with ticker FAR. The last closing price for Ferro-alloy Resources was 10.20p.
Ferro-alloy Resources Limited has a 4 week average price of 9p and a 12 week average price of 8.75p.
The 1 year high share price is 16p while the 1 year low share price is currently 7.50p.
There are currently 330,589,052 shares in issue and the average daily traded volume is 1,951,523 shares. The market capitalisation of Ferro-alloy Resources Limited is £35,373,028.56.
cyberbub: 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: 🤦‍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!
cyberbub: PS I would add that the insti seem to manage to dump 25M shares without crashing the share price So consider a scenario where NB decides to raise £1M ("partial payment" as per the RNS) towards his £3M divorce settlement in March. If newsflow has continued then by then we could be at 15p+, in which case he only has to sell 6M shares which would be easy enough in the market over a couple of weeks.Or as stated, if newsflow is good and we're at 15p he may be able to sell 20M in a block to an insti or HNW.I don't disagree that there is an 'overhang' on the share at present. But it makes no difference in the medium/long term *if* the company delivers its promise (which is not guaranteed of course).Personally I think we should focus on the mine development and the company's prospects, not the CEO's divorce!
cyberbub: Cool rmart. Hopefully it'll be a good investment, personally I'm expecting it to go substantially higher than the IPO price, I'm here for the duration (unless the story changes of course). The documentation on the website is encouraging, as is the fact (which you point out too) that the directors have a lot of skin in the game. My buys have started coming through delayed - all shown as sells so far!
cyberbub: Had this on my watchlist for a while, initially during its fall from the IPO price. Seems to me like it's not that far from breakeven, and then it has a sh*tload of vanadium to develop... I've bought in just now for the first time, 150k shares...GLA NAI
jailbird: I have not seen anything remotely positive for the last 12 months ..look at the share price pal tells you the story so far
burtond1: Can the Ferro-Alloy Resources share price move #FAR far away from its current level?"...with a CEO who holds over 20% of the stock...revenues forecast of over £200m a year and a share price hovering around 9p is @AlloyFerro worth a look ?..."
jailbird: Is this listing a prelude to a fund raising? review-of-vanadium-market-in-2019-and-prospect-in-2020 hxxps:// VI. Prediction and Analysis i. Price The vanadium market in 2019 can be seen as the adjustment period after the “high fever” in 2018. The market price fell from the beginning of the year to the end of the year. In this period, downstream manufacturers and high-cost raw material manufacturers suffered a lot. By the end of 2019, although the price of vanadium in the market is low, the V2O5 flake price of 93000-96000 yuan / ton was still far away from the cost price of large enterprises that used steel slag as raw materials. According to the cost of steel slag vanadium extraction of 60000 yuan / ton, large V2O5 flake enterprises still have a profit space of 30000 yuan / ton. Looking back at the price trend of vanadium in recent years, the current price is still not a safe bottom price. The pricing of large vanadium plants in the follow-up market still greatly affects the trend of vanadium price. It is estimated that the trend of vanadium price will be weak from the current price in 2020. It is possible that the market price of V2O5 flake will fall below 90000 yuan / ton, and the high price is expected to be difficult to exceed 120000 yuan / ton; the low market price of ferrovanadium is expected to be about 90000 yuan / ton, the high price is expected to be within 130000 yuan / ton; and the price of vanadium-nitrogen alloy is expected to fluctuate within 120000-180000 yuan / ton. ii. Supply and Demand The sharp increase in the supply of vanadium in 2019 is also the result of the sharp increase in the price of vanadium in 2018. High profits attract the raw material manufacturers to expand production and increase production, which leads to the oversupply of vanadium market in 2019, resulting in the price drop. As the main production increase occurs in the large vanadium plants, and the current price is far from the cost of large plants, it is less likely that the output will fall in 2019 due to price factors. Some steel plants are still on the way of slag blowing and vanadium extraction, and the output of vanadium extraction from stone coal is expected to remain low in 2019. Some enterprises that are still insisting on production will also face the possibility of production suspension and production reduction in the future. However, the vanadium extraction enterprises affected by the price are only limited to the production of ordinary grade ammonium metavanadate and powder vanadium enterprises. Some manufacturers can still expand their living space by processing high-purity products and extending the industrial chain. Therefore, the reduction of vanadium extraction from stone coal has little impact on the market price. In terms of demand, vanadium batteries are still difficult to realize industrialization. It is predicted that there will not be a large demand for vanadium market in 2020. In terms of steel market, it is judged that the operation will be normal and the demand will be stable. It is difficult to improve the situation that the supply exceeds the demand of vanadium market in 2020. Therefore, it is predicted that vanadium price will continue to explore the bottom space in 2020, and the annual price will fluctuate slightly.
jailbird: hxxps:// FOCUS: Oversupply will continue to cast shadow on Chinese vanadium market in H2 2019, sources say An oversupply that has been branded the leading cause of the persistent price weakness seen in China’s vanadium market during the first half of 2019 will likely continue to act as a headwind for the rest of the year, market sources told Fastmarkets. Vanadium prices in China were on a general downward trajectory in the first six months of 2019, partly due to higher-than-expected supply and weaker-than-anticipated demand, market sources said. Fastmarkets’ price assessment for ferro-vanadium 78% V min, fob China stood at $34.50-37 per kg on June 27, the last assessment in that month, marking a 48.4% drop from $68.50-70 per kg at the start of the year. The price was last assessed at $37-40 per kg on Thursday August 15, a decline of 6.1% from $40-42 per kg in the prior week. Fastmarkets’ price assessment for vanadium pentoxide 98% V2O5 min, fob China exhibited similar weakness over January-June; at $7.90-8.10 per lb on June 27, the price declined by 46.7% from $14-16 at the beginning of the year. The price was most recently assessed at $8.40-9.10 per lb on August 15, down by 3.3% from $8.40-9.70 per lb a week earlier. Growth of supply exceeds that of demand Both supply and demand for vanadium products in China have seen obvious increases in the first half of 2019, but growth of supply has outpaced that of demand, weighing on Chinese vanadium prices as a result, market participants told Fastmarkets. China produced around 57,000 tonnes of vanadium pentoxide (V2O5) in January-June of this year, a rise of 29.5% from approximately 44,000 tonnes over the same period of 2018, according to market participants. On the demand side, China’s rebar production totaled 118.76 million tonnes in the first six months of 2019, an increase of 19.3% year on year, according to data from China’s National Bureau of Statistics (NBS). The significant rise in supply was an inevitable result of the widespread production ramp-up among many Chinese V2O5 producers seen so far in 2019. The move was stimulated by handsome profits achieved last year, when vanadium prices hit record highs amid expectations of a substantial increase in demand for the material after China’s new rebar policy came into effect on November 1, 2018. The rebar policy requires domestic Chinese mills to utilize greater volumes of alloys such as ferro-vanadium to meet the revised tensile strength requirements, and therefore was expected to generate greater demand for vanadium products as a result. “After the new rebar policy took effect, we did notice there was some increase in demand [for vanadium products], but the problem is that a bigger increase has been observed on the supply side,” a producer source said. “Despite the continuous decline seen since the final quarter of 2018, the profit margins [for vanadium producers] are still quite appealing, so many producers were lured into either resuming production or ramping up production but the more supply there is, the more pressure the price will face,” the producer added. Reduced exports mean more spot cargoes are available at home On the other hand, the increase in supply of Chinese vanadium products in the first half of this year has also stemmed from a notable reduction in the country’s exports of vanadium products over the period, market sources told Fastmarkets. China exported 2,807 tonnes of ferro-vanadium (basis 75% vanadium) in January-June 2019, a drop of 17.9% from the 3,419 tonnes shipped in same period of 2018, according to official but unconfirmed data seen by Fastmarkets. Upstream, China exported 2,780 tonnes of V2O5 in the first six months of this year, a drop of 27% from 3,808 tonnes over the corresponding period of last year, the data showed. The considerable year-on-year decrease in exports of both ferro-vanadium and V2O5 in the first half of 2019 was partly because Chinese vanadium products exporters showed little interest in shipping their cargoes abroad upon noticing that the domestic price was more favorable than its European counterpart throughout most of that period. “China’s exporting less volumes of vanadium products abroad, to some extent, meaning comparatively more spot cargoes are available in the domestic market,” a Chinese market source said. “It’s easy for one to ignore the increased supply [of vanadium products] in this aspect, but when analyzing the supply and demand fundamentals in the domestic market, one needs to take the reduced exports into account to have a comprehensive picture of the whole market. Because the increased availability of domestic spot cargoes makes the competition among suppliers to secure business more fierce and therefore puts downward pressure on the price,” he added. Demand for vanadium products challenged by increased ferro-niobium imports Demand for vanadium products has also been squeezed somewhat by domestic mills’ growing preference for ferro-niobium due to its relative price stability and competitiveness against vanadium products. China’s imports of ferro-niobium soared by 86.9% year on year to 26,550 tonnes in the first half of 2019, from 14,204 tonnes in the corresponding period of 2018. “A relatively stable price means mills can always know where their costs sit at while a volatile price makes it hard for mills to calculate their costs. In this case, for the sake of risk- aversion, mills will not completely depend on products whose prices change too quickly and significantly,”; a second Chinese market participant said. “The price surge seen last year [in vanadium products] was irrational and has dented mills’ trust in the utilization of the alloy’s products, prompting them to use more alternatives, and in most cases ferro-niobium,”; he added. The price of ferro-vanadium in China hit a record high of $130-140 per kg in October 2018 on expectations that demand would significantly increase due to China’s new rebar policy that encourage mills to utilize greater amounts of alloys to achieve the revised tensile strength requirements. Market participants told Fastmarkets that they expect China to import around 50,000 tonnes of ferro-niobium in the whole of 2019. Wide price gap between Chinese, European markets attracts more cargoes to China Furthermore, despite the Chinese and European vanadium markets both experiencing similar degrees of weakness in the first six months of the year, prices in China remained higher than those in Europe, causing some European suppliers to ship their cargoes to China. And this has become more obvious since June when the Chinese domestic ferro-vanadium price began to gain some upward momentum amid unconfirmed reports circulating the market that Chinese authorities would conduct a round of inspections on rebar quality from July, according to sources. Since the beginning of the second half of the year, Chinese ferro-vanadium prices have continued to rise amid increased demand both mills and traders stimulated by the ongoing checks on rebar quality, further widening the price gap between China and foreign markets. “There is almost not any official news about the inspections, but mills and traders know that the inspections are ongoing in some areas, so they all stockpile some volumes of cargoes, though for different purposes,” a third Chinese market source said. The price differential between Chinese and European ferro-vanadium, for example, was as wide as $9-9.85 per kg in the week ended on August 9. A few Chinese vanadium traders told Fastmarkets they had the thought of importing either ferro-vanadium or vanadium nitrogen from abroad to take advantage of Chinese prices’ being much higher than elsewhere. Surplus in supply remains a headwind to vanadium prices in H2 2019 Despite the recent gains seen in July, many Chinese market participants told Fastmarkets they are not optimistic about the vanadium market for the rest of 2019, citing that the surplus in supply will continue to put the domestic vanadium market under downward pressure. The price of ferro-vanadium, 78% V min, fob China has risen by around 8.5% since the beginning of July, Fastmarkets’ price archive showed. Some market participants had already expressed concerns over a possible downswing risks when seeing the price climbed to as high as $40-42 per kg in late July, saying that price was being driven partly by speculation surrounding the rebar quality checks. “I do not deny the fact that the inspections on rebar quality could lend some support to the vanadium market, but I do not think that will result in such a significant rise in the [vanadium products] price, because many mills have already turned to the utilization of alloy products since the new rebar policy was implemented,” a fourth market source said. “Some mills, which had adopted the water-quenching process to produce rebar, were indeed observed to have placed orders for some tonnages of vanadium products since June, but the additional increase in demand is comparatively limited,” the source added. The domestic ferro-vanadium price began to lose upward momentum in August after some traders chose to sell off their cargoes at hand on believing that the price has already hit its ceiling, and the mounting supply simply fueled the price weakness. Most market participants spoken to by Fastmarkets maintain the belief that prices for vanadium products in China will not be able to reclaim the highs reached in July throughout the rest of the year, because once prices rise above 150,000 yuan ($21,323) per tonne, stone coal-fed V2O5 suppliers would be motivated to continue expanding their production and this in turn will act as a headwind to prices.
jailbird: Ferro-Alloy Resources Limited Interim ResultsSource: UK Regulatory (RNS & others)TIDMFARRNS Number : 5258KFerro-Alloy Resources Limited29 August 2019Ferro-Alloy Resources Limited ("FAR" or "the Company" or "the Group")Interim Results for the six months ended 30 June 2019Ferro-Alloy Resources Limited, the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announces its unaudited results for the six months ended 30 June 2019.Highlights: -- Admitted to trading on the London Stock Exchange on 28 March 2019, raising $6.9m (GBP5.3m) before expenses -- Continuous production maintained during major expansion and improvement work at the existing vanadium concentrate processing operation ("Existing Operation") -- 55% year-on-year increase in production at the Existing Operation; production of vanadium pentoxide in H1 2019 totalled 71.5 tonnes -- Incremental improvements to the Existing Operation already increasing production; record monthly production of vanadium pentoxide achieved in June 2019 of 17.6 tonnes -- Completion of first batch of improvements to the Existing Operation targeted for the end of Q3 2019 resulting in an anticipated significant increase in production in Q4 2019 -- Development continuing at the large Balasausqandiq Vanadium Project (the "Project"); which has a NPV of $2 billion at a long-term forecast vanadium pentoxide price of $7.50/lb -- Upgrade of the local feasibility study on the Project continuing For further information, visit Operations ReviewThe Existing OperationProduction at the Existing Operation was maintained throughout H1 2019 with only minor interruptions in spite of significant levels of capital development work being undertaken at the plant. Installation of new equipment and the renovation of the existing belt filter meant that plant availability averaged only 75% in the period but despite this, overall production reached 71.5 tonnes, representing a 55% increase to that achieved in the H1 2018. Incremental expansion and improvement work already completed has resulted in record production in June 2019 of 17.6 tonnes of vanadium pentoxide.The main work carried out in H1 to expand and improve production at the Existing Operation included: -- construction of a 990m2 extension to the plant facility; -- installation of electrometallurgical and recrystallisation equipment; -- construction of a 15,000m2 evaporation pond; -- detailed engineering for the construction of a connecting line and transformer station to the adjacent 110 kV power-line; -- addition of substantial new equipment to increase capacity of existing production processes; and -- construction of supporting worker accommodation Equipment delivered to site during H1 2019 included: -- a rotating pre-roasting furnace for the pre-roasting of concentrates; -- a second main concentrate roasting oven; -- a furnace for the decomposition of ammonium metavanadate ("AMV") into vanadium pentoxide; -- three new 16 cubic meters tanks with cooling systems for increasing the capacity for sedimentation of AMV; -- two new 16 cubic metre tanks with steam heating for the leaching with sodium carbonate of vanadium concentrates; -- a new 16 cubic metre tank for the preliminary leaching of roasted vanadium concentrates; and -- a new press-filter Outlook for the Existing OperationWhilst record production has already been reported as a result of recent improvement work, the most significant increases are expected to come in Q4 2019.Completion of the process plant building expansion and installation and commissioning of the first phase of new equipment is targeted at the end of Q3 2019 resulting in an increase in name-plate capacity to over 50 tonnes of vanadium pentoxide per month, over four times higher than the average for H1 2019. However, operations are likely to be impacted by unreliability of the current power supply until the connection is made to a new high voltage power line, expected around the end of Q1 2020.The new equipment includes a dissociation oven which will enable the Company to produce vanadium pentoxide powder and eliminate the discount which applies to the current production of AMV. Work is progressing on the second part of the capital programme which is expected to further increase production later in 2020.BalasausqandiqDevelopment of the large Balasausqandiq vanadium deposit is on-going in parallel with the Existing Operation.Balasausquandiq has a significant advantage when compared to most other vanadium deposits and producers in that the ore is not vanadiferous titano-magnetite ("VTM") and therefore does not require the expensive concentrating and high temperature roasting which VTM requires. This reduces both capital and operating costs by about 60% and is likely to make the Group the lowest cost primary producer. The proposed development is planned in two phases to produce up to 22,400 tonnes per year of vanadium pentoxide which, at a long-term price assumption of $7.50/lb of vanadium pentoxide, will result in a Net Present Value (at 10% discount rate) of over $2 billion.The Company has previously completed a feasibility study to locally required standards, supplemented by a western-style JORC reserve and resource estimate and the construction and operation of a 15,000 tpy pilot plant which has also proved the feasibility of the proposed process. A completed gap analysis has highlighted relatively small areas where further work is required to meet the standards of a typical western banking feasibility study. This will be carried out simultaneously with the already-planned confirmatory work to test the potential of using simpler vertical autoclaves instead of the more complex and expensive horizontal autoclaves that the pilot plant operation has indicated are not required.CorporateOn 28 March 2019 the Company was admitted to listing on the London Stock Exchange.On 25(th) of July 2019 Ferro-Alloy Resources Limited appointed Shore Capital to act as Corporate Broker.Vanadium prices in the periodPrices of vanadium pentoxide have been volatile in the reporting period, starting the year at around US$16/lb before falling to around US$7/lb by the end of the H1 reporting period. The fall in vanadium prices from the high levels experienced in 2018 was expected by the industry, although the timing was more sudden than had been forecast. As a result of industry trading practices and the application of the Company's accounting policies, the fall in price has resulted in certain charges to profit in the year that are not expected to recur.During the period the Group procured certain raw materials at prices based on the prevailing spot vanadium prices and, as these materials can take several months for delivery and processing, these were purchased at higher prices than those prevailing when the end product was sold, having the effect of reducing trading profits during periods of falling prices.Furthermore, as is the norm in the industry, revenue, and the corresponding trade receivable are recognised at the time of transfer of control of products to the customer, but the final pricing determination is based on assay and prices around the time of arrival of the goods at the port of destination which can be several months later. Therefore, receivables relating to shipments made in Q4 2018 which had been valued at fair value based on the price prevailing at the end of 2018, realised less than the carrying value. The loss, together with the fair value adjustments to further sales made in H1, is included in note 2 as Other Revenues.In accordance with the Company's accounting policy, shipments made in H1 2019, which had not yet been assayed and priced at destination by the end of the period, have been valued on the basis of the price prevailing as at 30 June 2019 of around $7/lb.Vanadium prices are now very close to the level that the Company expects in the long-term, so the directors do not anticipate further significant falls or increases. However, there is uncertainty over the extent of future Chinese enforcement of new steel standards which might increase demand and price volatility. Stable prices will lessen the accounting effects detailed above and as production rises in Q4 2019 and the Company starts to produce vanadium pentoxide instead of AMV, it is expected that profitability will be very much enhanced.Earnings and cash flowThe Group generated revenues of US$1.1m for the period compared to US$1.7m for the first six months of 2018, reflecting the falling market prices and the negative Other Revenue detailed above and below. Cost of sales increased to US$1.3m from US$0.7m for the first six months of 2018 reflecting the increased volumes and the relatively high price at which raw materials were acquired.Administrative expenses of US$0.9m (H1 2018: US$0.6m) included non-recurring listing costs of $0.3m, with the remainder principally comprising employee costs, audit and professional services, reflecting the higher costs associated with the Company being listed on the London Stock Exchange.The Group made a net loss before and after tax of US$1.3m (H1 2018: profit of US$0.3m).Net cash outflows from operating activities totalled US$2.3m (H1 2018: US$0m) principally reflecting the decrease in selling prices. Net cash outflows from investing activities included US$0.5m (H1 2018: US$0.2m) of capital expenditure associated with expanding the processing operation. Net cash inflows from financing activities totalled US$6.6m (H1 2018: US$0.2m) being the proceeds, net of commissions, from the offer at the time of listing on the London Stock Exchange.Balance sheet reviewNon-current assets increased to US$3.3m at 30 June 2019 (2018: US$2.8m), reflecting the capital expenditure in existing operations.Current assets excluding cash balances increased to US$2.4m from US$1.1m year before. The increase was driven by increases in production resulting in higher inventories (US$1.6m from US$0.9m) and an increase in prepayments (US$0.7m from US$0.1m)The Group had cash of US$4.6m at 30 June 2019 (2018: US$0.9m).Description of principal risks, uncertainties and how they are managedRisks and uncertainties which the Group is facing are as set out in the financial statements for the year ended 31 December 2019 in the CEO's Report on Operations as published on 30 April 2019. In addition, the timing and extent of the increase in production anticipated in the fourth quarter of 2019 is uncertain because it depends on the performance of sub-contractors and unforeseen commissioning delay. Furthermore, until the connection to the new power-line, expected around the end of the first quarter of 2020, there may be interruptions to production outside the control of the Company. Since the changes being made to the process plant are in the nature of expansions and improvements to the existing processes without any significant change in the style of equipment or technology, the directors are confident that any such outcomes can be relatively easily managed but recognises that some delay may be possible.Responsibility statementsDirectors Responsibility StatementWe confirm that to the best of our knowledge:a) the Condensed set of Interim Financial Statements has been prepared in accordance with IAS 34 Interim Financial Reporting;b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year);c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related partiestransactions and changes therein); andd) the condensed set of interim financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R.This Half Yearly Report has been approved by the Board and signed on its behalf by:James TurianDirector29.08.2019Condensed unaudited Consolidated Statement of Comprehensive Income Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 Note $000 $000 ------------- ------------------------ Revenue 2 1,108 1,661 Cost of sales 3 (1,323) (658) ------------- ------------------------ Gross (loss) profit (215) 1,003 Administrative expenses 4 (947) (604) Distribution expenses (58) (42) Other expenses (1) (1) ------------- ------------------------ (Loss) profit from operating activities (1,221) 356 ------------- ------------------------ Net finance income/(costs) 6 (89) (25) ------------- ------------------------ Profit (loss) before income tax (1,310) 331 ============= ======================== Income tax - (1) (Loss) profit for the period (1,310) 330 Other comprehensive (loss) income Items that may be reclassified to profit or loss Exchange differences arising on translation of foreign operations 9 11 ------------- ------------------------ Total comprehensive (loss) income for the period (1,301) 341 ============= ======================== (Loss)/earnings/per share (basic and diluted), US$ 14 (0.004) 0.001 ------------- ------------------------ Condensed unaudited Consolidated Statement of Financial Position Unaudited 31 December 30 June 2019 2018 Note $000 $000 -------------- ----------- ASSETS Non-current assets Property, plant and equipment 7 2,515 2,203 Exploration and evaluation assets 8 60 59 Intangible assets 9 25 25 Long-term VAT receivable 11 429 237 Prepayments 12 251 249 Total non-current assets 3,280 2,773 -------------- ----------- Current assets Inventories 10 1,616 929 Trade and other receivables 11 56 38 Prepayments 12 686 91 Cash and cash equivalents 13 4,623 892 Total current assets 6,981 1,950 -------------- ----------- Total assets 10,261 4,723 ============== =========== EQUITY AND LIABILITIES Equity Share capital 14 33,978 27,330 Additional paid-in capital 397 380 Foreign currency translation reserve (2,956) (2,965) Accumulated losses (22,585) (21,275) -------------- ----------- Total equity 8,834 3,470 -------------- ----------- Non-current liabilities Provisions 60 60 Total non-current liabilities 60 60 -------------- ----------- Current liabilities Trade and other payables 16 1,011 929 Contract liability 15 356 264 -------------- ----------- Total current liabilities 1,367 1,193 -------------- ----------- Total liabilities 1,427 1,253 -------------- ----------- Total equity and liabilities 10,261 4,723 ============== =========== Condensed unaudited Consolidated Statement of Changes in Equity Additional Foreign currency Share Share paid in capital translation Accumulated capital premium $000 reserve losses Total $000 $000 $000 $000 $000 -------- ---------- ---------------- ---------------- ------------------ ------- Balance at 1 January 2018 15 26,904 380 (2,672) (24,238) 389 Profit for the period - - - - 330 330 Other comprehensive income Exchange differences arising on translation of foreign operations - - - 11 - 11 -------- ---------- ---------------- ---------------- ------------------ ------- Total comprehensive income (loss) for the period - - - 11 330 341 -------- ---------- ---------------- ---------------- ------------------ ------- Transactions with owners, recorded directly in equity Shares issued - 181 - - - 181 Balance at 30 June 2018 15 27,085 380 (2,661) (23,908) 911 ======== ========== ================ ================ ================== ======= Balance at 1 January 2019 27,330 - 380 (2,965) (21,275) 3,470 Loss for the period - - - - (1,310) (1,310) Other comprehensive expense Exchange differences arising on translation of foreign operations - - - 9 - 9 -------- ---------- ---------------- ---------------- ------------------ ------- Total comprehensive income (loss) for the period - - - 9 (1,310) (1,301) -------- ---------- ---------------- ---------------- ------------------ ------- Transactions with owners, recorded directly in equity Shares issued (note 14) 6,648 - - - - 6,648 Other transactions recognised directly in equity (note 14) - - 17 - - 17 -------- ---------- ---------------- ---------------- ------------------ ------- Balance at 30 June 2019 33,978 - 397 (2,956) (22,585) 8,834 ======== ========== ================ ================ ================== ======= Condensed unaudited Consolidated Statement of Cash Flow ------------- ------------- Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Cash flows from operating activities (Loss) income for the period (1,310) 331 Adjustments for: Depreciation and amortisation 257 18 Loss on write-off of property, plant and equipment - 15 Expenses on credit loss provisions and impairment of prepayments 21 - Income tax - (1) Net finance costs / (income) 89 25 Cash from operating activities before changes in working capital (943) 388 Change in inventories (680) (3) Change in trade and other receivables (231) (416) Change in prepayments (595) (31) Change in trade and other payables 82 116 Change in contract liability 92 - ------------- ------------- Net cash from operating activities (2,275) 54 ------------- ------------- Cash flows from investing activities Acquisition of property, plant and equipment (519) (169) Net cash used in investing activities (519) (169) ------------- ------------- Cash flows from financing activities Proceeds from issue of share capital 6,880 181 Transaction costs on shares subscription (232) - Net cash from financing activities 6,648 181 ------------- ------------- Net increase in cash and cash equivalents 3,854 66 Cash and cash equivalents at the beginning of the period 892 267 ------------- ------------- Effect of movements in exchange rates on cash and cash equivalents (123) (24) ------------- ------------- Cash and cash equivalents at the end of the period 4,623 309 ============= ============= Unaudited notes to the Financial Statements for the 6 months period ended 30 June 2019 1 Basis of preparation These Condensed Unaudited Financial Statements have been prepared in accordance with IAS34 Interim Financial Reporting. The same accounting policies and basis of preparation have been followed as in the annual financial statements of the Group which were published in 30 April 2019.The consolidated financial statements are prepared in accordance with IFRS on a going concern basis. The Directors have reviewed the Group's cash flow forecasts for at least 12 months following the reporting date, including sensitivities and mitigating actions. After taking into account available cash and forecast cash flow from operations, the Directors consider that the Group has adequate resources to continue its operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.These Condensed Unaudited Financial Statements have not been approved or reviewed by the Corporate Auditor.IFRS 16, Leases, has been applied for the first time but its impact is not material. 2 Revenue Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Revenue from sales of vanadium products 1,972 1,661 Sales of gravel and waste rock 1 - Total revenue from customers 1,973 1,661 ------------- ------------- Other revenues Ð change in fair value of customer contract (865) - ============= ============= 1,108 1,661 ============= ============= Vanadium productsUnder certain sales contracts the single performance obligation is the delivery of AMV to the designated delivery point at which point possession, title and risk on the product transfers to the buyer. The buyer makes an initial provisional payment based on volumes and quantities assessed by the Company and market spot prices at the date of shipment. The final payment is received once the product has reached its final destination with adjustments for quality / quantity and pricing. The final pricing is based on the historical average market prices during a quotation period based on the date the product reaches the port of destination and an adjusting payment or receipt will be made to the initially received revenue. Where the final payment for a shipment made prior to the end of an accounting period has not been determined before the end of that period, the revenue is recognised based on the spot price that prevails at the end of the accounting period, with adjustments for the value of money and the carry costs where significant.Other revenue related to the change in the fair value of amounts receivable under the sales contracts between the date of initial recognition and year end resulting from market prices are recorded as other revenue. Refer to note 17 for details of contract liabilities recorded at fair value. 3 Cost of sales Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Materials 753 360 Wages, salaries and related taxes 257 219 Depreciation 244 22 Electricity 58 37 Other 11 20 ------------- ------------- 1,323 658 ============= ============= 4 Administrative expenses Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Wages, salaries and related taxes 422 391 Listing & reorganisation expenses 336 105 Audit 61 - Professional services 43 17 Materials 24 22 Business trip expenses 15 13 Depreciation and amortization 13 6 Security 8 9 Communication and information services 3 3 Bank fees 2 4 Other 20 34 ------------- ------------- 947 604 ============= ============= 5 Personnel costs Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Wages, salaries and related taxes 639 584 ------------- 639 584 ============= ============= 6 Finance costs Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Net foreign exchange costs 89 25 Net finance costs/(income) 89 25 ============= ============= 7 Property, plant and equipment Plant and Construction Land and buildings equipment Vehicles Computers Other in progress Total $000 $000 $000 $000 $000 $000 $000 ------------------ ---------- -------- --------- ----- ------------ ------- Cost Balance at 1 January 2018 1,853 2,015 364 13 42 202 4,489 Additions 9 131 123 13 47 350 673 Disposals - (27) - - (4) (17) (48) Foreign currency translation difference (251) (283) (61) (3) (10) (61) (669) ------------------ ---------- -------- --------- ----- ------------ ------- Balance at 31 December 2018 1,611 1,836 426 23 75 474 4,445 ================== ========== ======== ========= ===== ============ ======= Balance at 1 January 2019 1,611 1,836 426 23 75 474 4,445 Additions 63 200 155 14 17 70 519 Transfers - 181 - - - (181) - Foreign currency translation difference 14 16 3 1 2 5 41 ------------------ ---------- -------- --------- ----- ------------ ------- Balance at 30 June 2019 1,688 2,233 584 38 94 368 5,005 ================== ========== ======== ========= ===== ============ ======= Depreciation Balance at 1 January 2018 1,853 2,015 295 13 32 202 4,410 Depreciation for the period - 10 29 1 5 - 45 Disposals - (27) - - - - (27) Reversal of impairment (1,022) (393) - - - (175) (1,590) Foreign currency translation difference (250) (270) (42) (2) (5) (27) (596) ------------------ ---------- -------- --------- ----- ------------ ------- Balance at 31 December 2018 581 1,335 282 12 32 - 2,242 ================== ========== ======== ========= ===== ============ ======= Balance at 1 January 2019 581 1,335 282 12 32 - 2,242 Depreciation for the period 28 171 22 2 4 - 227 Transfers - - - - - - - Foreign currency translation difference 5 13 3 1 (1) - 21 ------------------ ---------- -------- --------- ----- ------------ ------- Balance at 30 June 2019 614 1,519 307 15 35 - 2,490 ================== ========== ======== ========= ===== ============ ======= Carrying amounts At 1 January 2018 - - 69 - 10 - 79 ================== ========== ======== ========= ===== ============ ======= At 31 December 2018 1,030 501 144 11 43 474 2,203 ================== ========== ======== ========= ===== ============ ======= At 30 June 2019 1,074 714 277 23 59 368 2,515 ================== ========== ======== ========= ===== ============ ======= . 8 Exploration and evaluation assets The Group's exploration and evaluation assets relate to Balasausqandiq deposit. During the six months period ended 30 June 2019 the Group did not capitalise any exploration and evaluation assets (in 2018: US$nil). As at 30 June 2019 the carrying value of exploration and evaluation assets was US$0.060m (2018: US$0.059m). 9 Intangible assets Mineral Computer rights Patents software Total $000 $000 $000 $000 -------- -------- ---------- ------ Cost Balance at 1 January 2018 115 36 4 155 Additions - 2 - 2 Foreign currency translation difference (16) (5) (1) (22) -------- -------- ---------- ------ Balance at 31 December 2018 99 33 3 135 ======== ======== ========== ====== Balance at 1 January 2019 99 33 3 135 Additions - - - - Foreign currency translation difference 1 1 - 2 -------- -------- ---------- ------ Balance at 30 June 2019 100 34 3 137 ======== ======== ========== ====== Amortisation Balance at 1 January 2018 115 36 2 153 Amortisation for the year - - 1 1 Reversal of impairment - (23) - (23) Foreign currency translation difference (16) (4) (1) (21) -------- -------- ---------- ------ Balance at 31 December 2018 99 9 2 110 ======== ======== ========== ====== Balance at 1 January 2019 99 9 2 110 Amortisation for the year - 1 - 1 Foreign currency translation difference 1 (1) 1 1 -------- -------- ---------- ------ Balance at 30 June 2019 100 9 3 112 ======== ======== ========== ====== Carrying amounts At 1 January 2018 - - 2 2 ======== ======== ========== ====== At 31 December 2018 - 25 - 25 ======== ======== ========== ====== At 30 June 2019 - 25 - 25 ======== ======== ========== ====== 10 Inventories Unaudited 31 December 30 June 2019 2018 $000 $000 -------------- ----------- Raw materials and consumables 1,162 527 Finished goods 448 184 Goods in transit - 218 Work in progress 6 - 1,616 929 ============== =========== 11 Trade and other receivables Unaudited 31 December Non-current 30 June 2019 2018 $000 $000 ------------- ----------- VAT receivable 789 594 Provision for VAT receivable (360) (357) 429 237 ============= =========== Unaudited 31 December Current 30 June 2019 2018 $000 $000 ------------- ----------- Trade receivables from third parties 26 21 Due from employees - 24 Other receivables 51 14 ------------- ----------- 77 59 Expected credit loss provision (21) (21) ------------- 56 38 ============= =========== The expected credit loss provision relates to credit impaired receivables which are in default and the Group considers the probability of collection to be remote given the age of the receivable and default status. 12 Prepayments Unaudited 31 December 30 June 2019 2018 $000 $000 -------------- ----------- Non-current Prepayments for equipment 251 249 -------------- ----------- 251 249 ============== =========== Current Prepayments for goods and services 686 91 -------------- ----------- 686 91 ============== =========== 13 Cash and cash equivalents Unaudited 31 December 30 June 2019 2018 $000 $000 -------------- ----------- Bank balances and other cash deposits 4,623 885 Petty cash - 7 Cash and cash equivalents 4,623 892 ============== =========== 14 Equity (a) Share capital Number of shares unless otherwise stated Ordinary shares Unaudited 31 December 30 June 2019 2018 ------------- ----------- Par value - - Outstanding at beginning of year 305,471,087 1,523,732 Shares issued prior to share split - 1,493 Share reorganisation (split) - 305,045,000 Shares issued post share split 7,507,761 426,087 ------------- Outstanding at end of year 312,978,848 305,471,087 ============= =========== Ordinary sharesAll shares rank equally. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.In July 2018 the Company's shareholders voted by ordinary resolution to subdivide each share into 200 new shares of no par value so that the listed shares will be of a value within the normal range for listing companies. As a result, the share premium was transferred to share capital in 2018.ReservesShare capital: Value of shares issued less costs of issuance. Prior to the share restructuring share capital related to the nominal value of shares issued.Additional paid in capital: Amounts due to shareholders which were waived.Foreign currency translation reserve: Foreign currency differences on retranslation of results from functional to presentational currency and foreign exchange movements on intercompany balances considered to represent net investments which are permanent as equity.Accumulated losses: Cumulative net losses. (b) Dividends No dividends were declared for the six-month period ended 30 June 2019. (c) (Loss) earnings per share (basic and diluted) The calculation of basic and diluted earnings / (loss) per share has been based on the following (loss) profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding. (i) (Loss) profit attributable to ordinary shareholders (basic and diluted) Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- (Loss) profit for the year, attributable to owners of the Company (1,310) 330 ------------- ------------- (Loss) profit attributable to ordinary shareholders (1,310) 330 ============= ============= (ii) Weighted-average number of ordinary shares (basic and diluted) Unaudited Unaudited six-month six-month period ended period ended 30 June 2018 Shares 30 June 2019 Restated ------------- ------------- Issued ordinary shares at 1 January (after subdivision) 305,471,087 304,746,400 Effect of shares issued (weighted) 5,718,240 101,000 Weighted-average number of ordinary shares at 30 June 311,189,327 304,847,400 ============= ============= (Loss) earnings per share of common stock attributable to the Company (basic and diluted) (0.004) 0.001 ------------- ------------- The 2018 comparative has been revised to reflect the share split as if it had occurred on 1 January 2018 for comparability purposes. There are no significant dilutive or potentially dilutive instruments. 15 Loans and borrowings There were no outstanding loans at 30 June 2019 (31 December 2018: US$nil) and no borrowings or loan repayments in the six month period ended 30 June 2019 (in 2018: the borrowing was US$ nil). 16 Trade and other payables Unaudited 31 December 30 June 2019 2018 $000 $000 -------------- ----------- Trade payables 594 302 Advances received 159 5 Due to directors/key management 146 547 Due to employees 57 44 Other taxes 55 31 1,011 929 ============== =========== 17 Contract liability (trade and other payables at FVPL) Unaudited 31 December 30 June 2019 2018 $000 $000 -------------- ----------- Contract liability (trade and other payables at FVPL) 356 264 356 264 ============== =========== 18 Contingencies (a) Insurance The insurance industry in the Kazakhstan is in a developing state and many forms of insurance protection common in other parts of the world are not yet generally or economically available. The Group does not have full coverage for its plant facilities, business interruption, or third party liability in respect of property or environmental damage arising from accidents on Group property or relating to Group operations. There is a risk that the loss or destruction of certain assets could have a material adverse effect on the GroupÕs operations and financial position. (b) Taxation contingencies The taxation system in Kazakhstan is relatively new and is characterised by frequent changes in legislation, official pronouncements and court decisions which are often unclear, contradictory and subject to varying interpretations by different tax authorities. Taxes are subject to review and investigation by various levels of authorities which have the authority to impose severe fines, penalties and interest charges. A tax year generally remains open for review by the tax authorities for five subsequent calendar years but under certain circumstances a tax year may remain open longer.These circumstances may create tax risks in Kazakhstan that are more significant than in other countries. Management believes that it has provided adequately for tax liabilities based on its interpretations of applicable tax legislation, official pronouncements and court decisions. However, the interpretations of the relevant authorities could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant.There are no tax claims or disputes at present. 19 Segment reporting The Group's operations are split into three segments based on the nature of operations: processing, subsoil operations (being operations related to exploration and mining) and corporate segment for the purposes of IFRS 8 Operating Segments. The GroupÕs assets are primarily concentrated in the Republic of Kazakhstan and the GroupÕs revenues are derived from operations in, and connected with, the Republic of Kazakhstan. Unaudited six-month period ended 30 June 2019 Processing Subsoil Corporate Total $000 $000 $000 $000 ---------- ------- --------- ------- Revenue 1,108 - - 1,108 Cost of sales (1,323) - - (1,323) Administrative expenses (278) (14) (656) (1,271) Distribution & other expenses (59) - - (59) Finance costs 9 - (98) (89) (Loss)/Profit before tax (543) (14) (753) (1,310) ========== ======= ========= ======= Unaudited six-month period ended 30 June 2018 Processing Subsoil Corporate Total $000 $000 $000 $000 ---------- ------- --------- ------- Revenue 1,661 - - 1,661 Cost of sales (658) - - (658) Administrative expenses (229) (20) (355) (604) Distribution & other expenses (43) - - (43) Finance costs 1 - (26) (25) ---------- ------- --------- ------- Profit before tax 732 (20) (381) 331 ========== ======= ========= ======= 20 Related party transactions (a) Transactions with management and close family members Management remunerationKey management personnel received the following remuneration during the year, which is included in personnel costs (see Note 5): Unaudited Unaudited six-month six-month period ended period ended 30 June 2019 30 June 2018 $000 $000 ------------- ------------- Wages, salaries and related taxes 190 178 ------------- ------------- (b) Transactions with other related parties There were no other related party transactions.This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit CKCDBPBKKCFB(END) Dow Jones NewswiresAugust 29, 2019 02:01 ET (06:01 GMT)
Ferro-alloy Resources share price data is direct from the London Stock Exchange
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