Shares of Ferro-Alloy Resources Ltd (LON: FAR) crashed 12.5% after revealing delays in the delivery of vanadium concentrate from its existing operations during the six months to June 30, 2021.
The vanadium producer attributed the lower production figures to interruptions caused by the COVID-19 pandemic, which saw vanadium production fall 37% in Q2, 2021. The company noted that concentrate supply had stabilised from June 2021.
Ferro-Alloy generated $1.5 million in revenues during the six months, representing a significant improvement to the $1.1 million generated in H1 2020 driven by higher vanadium prices that compensated for the lower production figures.
The company made a net loss of $1.1 million, a significant reduction compared to the $1.7 million loss generated in a similar period last year.
The vanadium miner had S$8.2m in cash as of 30 June 2021, leaving it in a solid financial position to keep funding its Balasausqandiq vanadium project, which is currently undergoing a feasibility study.
Ferro-Alloy Resources also noted that Mick Davis and his Blue Vision team had honoured their promised investment in the company of $10.1 million. The company also made significant progress in increasing its production capacity.
The company’s prospects are pretty promising, which makes today’s selloff seem a bit exaggerated. While the Balasausqandiq vanadium project is still far from reaching production stages, its current operations are progressing quite well.
*This is not investment advice.
Ferro-Alloy share price.
Ferro-Alloy shares crashed 12.46% to trade at 26.7p, falling from Monday’s closing price of 30.5p.