Kazakhstan-based vanadium producer starts trading on LSE

Kazakhstan-based vanadium producer starts trading on LSE
Vanadinite is one of the main industrial ores of the metal vanadium. / Géry Parent.
By bne IntelliNews March 29, 2019

Kazakhstan-based vanadium rare metal producer Ferro-Alloy Resources Group began trading on the London Stock Exchange on March 28, raising $6.9mn and issuing 7,507,761 new ordinary shares. That marked a market capitalisation of £219.1mn.

CEO Nick Bridgen said that the company's Balasausqandiq mine has the lowest cash cost in the world due to cheap processing costs thanks to the nature of the deposit.

The money raised by Ferro-Alloy Resources will help push the Balasausqandiq vanadium project’s output to more than 5,600 tonnes of vanadium pentoxide and expand production at a separate part of the project currently operating at 1,500 tonnes per annum. The company hopes to raise total production to 23,000 tonnes of vanadium pentoxide per year in about about 3-1/2 years.

“This unique project has the potential to be one of the world’s largest and lowest cost producing mines,” Bridgen said.

The project has a net present value of $2bn, assuming a long-term vanadium pentoxide price of $7.50 per pound. The current price stands at $14 per pound.

Vanadium is used by the steel, aerospace and energy storage industries, among others.

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