Ferro-Alloy Resources Ltd (LSE:FAR)’s announcement of a delay to the feasibility study at Balasausqandiq vanadium project in Kazakhstan shouldn’t detract from its status as a world-class deposit, says house broker ShoreCap.
By-products such as carbon black eventually could even see a negative cost of production, says the broker, which has an unrisked valuation of £601 million (81p per share) and discounted value of 33p, down from 42p on today’s news.
“Given Balasausqandiq’s sedimentary origin, we note that low-cost extraction is possible through leaching rather than expensive pre-concentration or roasting, as is the case with the more common vanadium-bearing magnetite deposits,” it adds.
Shares were unchanged today at 6.5p.