Ferro-Alloy Resources Ltd (LSE:FAR)'s house broker said that work currently is focused on plant improvements made during the first quarter to increase the purity of the vanadium pentoxide product to the price it receives.
Broker Shore Cap added that the primary Balasausqandiq project remains the main focus and with by-credits, can generate negative costs of production and is the main driver of FAR’s equity valuation.
Vanadium prices (China V2O5 98% flake) have fallen to c.$5.0/lb, but ShoreCap expects the falling trend to stabilise and reverse due to increased installations of vanadium flow batteries.
Shares were unchanged at 5.75p.