Ferro-Alloy Resrcs. - Interim Results
RNS Number : 5294WFerro-Alloy Resources Limited28 September 202628 September 2026
Ferro-Alloy Resources Limited
(“the Company”)
Interim Results for the six months ended 30 June 2026
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan announces its unaudited interim results for the six months ended 30 June 2026.
Overview
The Company’s main focus during the year to date has been the progression of the Balasausqandiq vanadium deposit (the “Project”) to production.
Concurrently, the Company has continued to operate the existing plant at the mine site for the production of both vanadium and molybdenum from recycled concentrates that were considered sufficiently profitable to process and for research and development (“R&D”) purposes.
Project progression
Following the issue of the feasibility study in October 2025, the current stage of the Project’s development is front-end engineering and design, after which the Company expects to receive quotations from construction engineers for the building of the Project. Concurrently, in order to secure finance for the Project, the Company is engaging with various financial institutions and other governmental organisations, particularly in the US, which may support the financing of the Project owing to vanadium and rare earth elements (“REEs”) being critical metals. To that end, the Company has received a letter from a large US government financing institution (“the USGFI”) indicating the USGFI’s willingness to consider a formal application for a loan for the Project, subject to the USGFI’s comprehensive review and approval process.
Research and development
The Group has focused on two main areas of R&D during the period; the progression of the carbon black substitute (“CBS”) product and the development of processes to recover the REEs contained within the Balasausqandiq ore.
CBS
Following a competitive tender process, the Group has been awarded a new grant of US$500,000 by the Kazakhstan Science Fund. The purpose of the grant is to fund the installation of new equipment that will support the preparation of samples of CBS (40% carbon) for future industrial-scale testing and commercial offtake negotiations. Once installed, the plant will be capable of producing up to 1,000 tonnes of high grade CBS sample. Under the terms of the funding, the Group is required to co-fund the grant with US$227,000.
Concurrently, the Group has continued test work and product refinement processes with potential Chinese customers.
REEs
The ore at the Balasausqandiq is known to contain REEs, as evidenced by historical analytical work conducted at the deposit as part of the Company's previous studies.
The Group has focused on the optimisation of the processes to recover the yttrium and other REEs present in the residual leach solutions produced by the proposed Project processing facility, following the extraction of the vanadium, to produce a mixed rare earth concentrate.
Processing
- Despite the focus of the existing plant being on R&D, the Group procured and treated vanadium-bearing concentrates that were considered sufficiently profitable to process.
- As a result, in the first six months of the year, the existing plant produced 96 tonnes (2025: 151 tonnes) of vanadium pentoxide (mainly as ammonium metavanadate) and 14.6 tonnes (2025: 27.8 tonnes) of molybdenum (in ferro-molybdenum).
Financial
- Total revenues of US$1.8 million for the period (H1 2025: US$2.5 million) reflected a 35% reduction in the volume of raw materials processed by the plant during the period due to the unavailability of suitable materials available in the market for processing.
- Overall loss for the period was US$3.2 million (H1 2025: loss of US$3.5 million).
- Cash balance of US$0.8 million at the period end (H1 2025: US$0.4 million). Cash balance at 31 August 2026 of US$0.5 million.
Corporate
- During the period, the Company issued 28,621,701 ordinary shares of nil par value in the capital of the Company for gross proceeds of £1,574,194.
- Subsequent to the period end, the Company issued 167,647,046 ordinary shares of nil par value in the Company raising gross proceeds of £5,700,000. The funds raised were used to repay the outstanding principal and accrued interest due to the bondholders of Tranche 1 and Tranche 3 of the 2023 US$20 million Kazakhstan bond programme.
Post period
- Peter Secker has been appointed as incoming Chief Executive Officer (“CEO”), effective from mid-October 2026, subject to final contract. Current CEO, Nick Bridgen, will become non-executive Deputy Chairman.
- Signing of a memorandum of understanding with Maglut Heavy Industries Inc, a California-based developer of a proprietary chromatography REE separation platform, providing a potential downstream route for Balasausqandiq REEs into the US market.
Nick Bridgen, CEO of Ferro-Alloy Resources said:
“The Project continues to make good progress with the advancement of several key workstreams during the first half of the year.
The development of the CBS is an important component of the Project’s overall economics, contributing to a strong Phase 1 net present value approaching US$1 billion. R&D activities have remained focused on developing this product with a view to securing off-take agreements. The recent strength in the prices of REEs gives us an opportunity to develop another important by-product which will even further enhance net present value and, importantly, reduce the cash cost attributable to vanadium production even lower, cementing the Company’s position as by far the lowest cash cost producer of any vanadium producer currently operating or developing projects.”
ENDS
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Limited
Nick Bridgen (CEO) / William Callewaert (CFO)
info@ferro-alloy.com
Shore Capital
(Joint Corporate Broker)
Panmure Liberum Limited
(Joint Corporate Broker)
BlytheRay (Financial PR)
Toby Gibbs / Lucy Bowden
Scott Mathieson / John More
Megan Ray / Will Jones
+44 207 408 4090
+44 20 3100 2000
+44 20 7138 3204
ferro-alloy@blytheray.com
Notes to Editors
About Ferro-Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.
Balasausqandiq is a very large deposit, with vanadium as the principal product together with the CBS and several by-products. Owing to the nature of the ore, the capital and operating costs are very much lower than for other vanadium projects.
The most recent mineral resource estimate for ore-body one (of seven) provided an Indicated Mineral Resource of 32.9 million tonnes at a mean grade of 0.62% vanadium pentoxide ("V2O5") equating to 203,364 contained tonnes of V2O5. In the system of reserve estimation used in Kazakhstan the reserves are estimated to be over 70 million tonnes in ore-bodies 1 to 5, but this does not include the full depth of ore-bodies 2 to 5, or the remaining ore-bodies which remain substantially unexplored.
The grade of carbon in the deposit is over 8%. The carbon flows through to the tailings from where it is concentrated, in a simple low-cost operation, into a 40% carbon product, the CBS, that can be used in place of carbon black as a reinforcing filler in the making of rubber.
The Project will be developed in two phases, Phase 1 and Phase 2, with Phase 1 treating 1.65 million tonnes per year.
The results of the feasibility study, carried out principally by SRK and Tetra Tech, were announced in October 2025, showing a Project net present value ("NPV") of US$748m and internal rate of return ("IRR") of 22%. Since then, a preliminary re-estimation of the capital costs by Chinese engineers China National Chemical Engineering Sixth Construction Co., Ltd has been received, which would have the effect of increasing NPV to US$932m and IRR to 31%.
There is an existing concentrate processing operation at the site of the Balasausqandiq deposit. The production facilities were originally created from a 15,000 tonnes per year pilot plant, which was then expanded and adapted to recover vanadium, molybdenum and nickel from purchased concentrates. Alongside this operation, there is a well-equipped laboratory and highly skilled technical team, who have already developed the technology that is being built into the feasibility study and is further developing and optimising processes needed for future vanadium and carbon operations. The plant will operate only when profitable concentrates are available and, when not operating as a production facility, will operate on an expanded basis as an R&D centre.
Interim Management Report
Introduction
The Company is primarily engaged with progressing the giant Balasausqandiq vanadium project (“the Project”) to production.
The Company also operates a small-scale process plant with a strategic focus on research and development (“R&D”) for the Company’s carbon black substitute (“CBS”) product.
Project progression
Following the issue of the feasibility study in October 2025, the current stage of the Project’s development is front-end engineering and design, after which the Company expects to receive quotations from construction engineers for the building of the Project. Concurrently, in order to secure finance for the Project, the Company is engaging with various financial institutions and other governmental organisations, particularly in the US, which may support the financing of the Project owing to vanadium and rare earth elements (“REEs”) being critical metals. To that end, the Company has received a letter from a large US government financing institution (“the USGFI”) indicating the USGFI’s willingness to consider a formal application for a loan for the Project, subject to the USGFI’s comprehensive review and approval process.
Research and development
The Group has focused on two main areas of R&D during the period; the progression of the CBS product and the development of the REEs contained within the Balasausqandiq ore.
CBS
Following a competitive tender process, the Group has been awarded a new grant of US$500,000 by the Kazakhstan Science Fund. The purpose of the grant is to fund the installation of new equipment that will support the preparation of samples of CBS (40% carbon) for future industrial-scale testing and commercial offtake negotiations. Once installed, the plant will be capable of producing up to 1,000 tonnes of high grade CBS sample. Under the terms of the funding, the Group is required to co-fund the grant with US$227,000.
The Group has continued test work and product refinement processes with potential Chinese customers.
REEs
As identified in the Company's prospectus and related Competent Persons Report, the ore at the Balasausqandiq deposit is known to contain REEs, as evidenced by historical analytical work conducted at the deposit as part of the Company's previous studies.
The Group has focused on the optimisation of the processes to recover the yttrium and other REEs present in the residual leach solutions produced by the proposed Project processing facility, following the extraction of the vanadium, to produce a mixed rare earth concentrate.
Processing
Despite the focus of the existing plant being on R&D, the Group procured and treated vanadium-bearing concentrates that were considered profitable to process.
As a result, the existing plant produced in the first six months of the year 96 tonnes (2025: 151 tonnes) of vanadium pentoxide (mainly as ammonium metavanadate) and 14.6 tonnes (2025: 27.8 tonnes) of molybdenum (in ferro-molybdenum).
Corporate
During the period, the Company issued 28,621,701 ordinary shares of nil par value in the capital of the Company for gross proceeds of £1,574,194. See Note 16 for further details.
Earnings and cash flow
The Group generated total revenues of US$1.8m for the period compared to US$2.5m for the first six months of 2025, representing a decrease in overall revenues of 28%. The decrease in revenues primarily reflects a 35% reduction in the volume of raw materials processed by the plant during the period due to the unavailability of suitable materials available in the market for processing.
The cost of sales for the period under review was US$2.3m (2025: US$3.4m) which is line with the volumes of concentrates processed by the existing operation during the period.
A gross loss of US$0.5m was recorded for the period (2025: US$0.8m).
Administrative expenses for the period were US$1.6m (2025: US$1.5m) while corresponding net finance costs were US$1m (2025: US$1.1m).
The Group made a loss before and after tax of US$3.2m (2025: loss of US$3.5m).
Net cash outflows used in operating activities were US$2.4m (2025: cash outflow of US$0.5m). Net cash used in investing activities during the period was US$0.4m (2025: cash outflow of US$2.2m) representing a decrease outflow of US$1.8m attributable to the completion of the Company’s feasibility study, the costs of which have historically been capitalised by the Company. Net cash inflow from financing activities was US$1m (2025: net cash outflow of US$1.1m) representing the proceeds of the equity issued noted above less interest paid on the bonds previously issued by the Company under the 2023 US$20 million Kazakhstan bond programme (“the Bond Programme”).
Balance sheet review
At the period end, non-current assets totalled US$14.4m (2025: US$13.2m) reflecting the completion of the feasibility study during October 2025 and the conclusion of the capitalisation of the vast majority of the costs of same.
Current assets, excluding cash balances, totalled US$4.4m at the period end in comparison to US$5m for the prior period.
The Group held an aggregate cash balance of US$0.8m at the period end (2025: US$0.4m).
Non-current liabilities at the period end were US$5.1m (2025: US$17.2m) reflecting the accounting reclassification of several tranches of bonds, previously issued under the Bond Programme, to current liabilities given their maturity dates.
Current liabilities at the period end were US$16.1m (2025:US$4.6m) the difference between the periods being attributable to the accounting reclassification noted above.
Environmental, social and governance
Both the existing operation and the planned process plant for Balasausqandiq will have a strongly positive environmental impact. The vanadium from production will benefit energy storage in both vanadium redox flow batteries, the front-running technology for fixed ground long-term energy storage, but also potentially in certain technologies for mobile batteries used in electric vehicles.
The CO2 emissions created by our production at Balasausqandiq are expected to be a fraction of most other producers which generally require concentration and high-temperature roasting to liberate the vanadium. The CBS which we plan to market as a replacement for carbon black is produced without burning hydrocarbons, as is the usual production process.
Description of principal risks, uncertainties and how they are managed
- Current processing operations
Current processing operations make up a small part of the Company’s expected future value and allow the Group to gain valuable experience of the vanadium and carbon black industries and will provide an experienced workforce ready to build and operate the planned operating plant. The principal risks of this operation are the prices of its products (vanadium, molybdenum and nickel), availability of vanadium-bearing concentrates and the efficiency of recovery of products from those concentrates.
The Group is constantly reviewing the market opportunities for supplies of vanadium-bearing concentrates from reliable suppliers that can deliver concentrates that are profitable to treat and on a timely basis.
- Balasausqandiq project
The Project is primarily dependent on long-term vanadium prices.
The Project is also dependent on raising finance to meet projected capital costs (see below) and the successful construction and commissioning of the Project’s proposed mine processing facilities. It is not unusual for new mining projects to experience unforeseen problems, incur unexpected costs and be exposed to delays during construction, commissioning, and initial production, all of which could have a material adverse effect on the Company’s operations and financial position. The Company has taken steps to mitigate such potential adverse effects by engaging globally recognised engineers and consultants to assist with the development and design of the key elements of the Project in addition to the Group’s own highly qualified workforce.
- Geopolitical situation
While the ongoing invasion of Ukraine by Russia is not directly impacting the Group, the Directors remain vigilant of the situation. The continued main risk of the conflict is to the Group’s transport routes, many of which involve transit through Russia. Whilst these are currently operating without issue, sanctions have been made against Russian and Belarusian vehicles transiting through Europe (but not against vehicles registered in other jurisdictions in the region such as Kazakhstan). There is a risk that further sanctions might prevent transit through Russia into Latvia, through which the majority of the Company’s exports flow. The Company continues to review alternative transit routes for raw material imports and product exports through the West of Kazakhstan via the Caspian Sea. Routes to China are working normally.
With respect to the global sanctions imposed on certain Russian entities and individuals, the Group monitors the implications of those sanctions on the Group’s trading activities on an ongoing basis.
The Company has not yet identified any risks applicable to the Group due to the ongoing conflict in the Middle East but will continue to monitor the situation.
- Financing risk
The Project will require substantial funds to be raised in debt and equity which will be dependent upon market conditions at the time.
In March 2021 the Company signed an investment agreement with Vision Blue Resources Ltd (“Vision Blue”). Under the terms of this agreement and in addition to Vision Blue’s participation in various secondary equity fundraises completed by the Company, investments totalling US$19m have been made by Vision Blue. Vision Blue holds options to subscribe up to US$30m at pre-agreed prices to partially finance the construction of the Project.
- Climate change risk
The Group has not identified any particular climate change related scenarios that would likely have a significant impact on the Project or the existing operation. The existing operation already functions in an environment that is subject to extreme weather conditions and is, therefore, considered to have a strong resilience to existing and future climate-related scenarios.
- Risks associated with the developing nature of the Kazakh economy
According to the World Bank, Kazakhstan has transitioned from lower-middle-income to upper-middle-income status in less than two decades. Kazakhstan’s regulatory environment has similarly developed and the Company believes that the period of rapid change and high risk is coming to an end. Nevertheless, the economic and social regulatory environment continues to develop and there remain some areas where regulatory risk is greater than in developed economies. The Company mitigates this risk by monitoring developments in these regulatory environments on a regular basis and taking relevant actions where required.
- Commodity price risk
As already noted above, the success of the Company is dependent upon the long-term prices of the products to be produced by the planned mine processing facilities. As a result of there being no formally established trading markets for the Company’s principal products from the Project, there is a risk that price fluctuations and volatility for these products may have an adverse impact on the Company’s future financial performance. The Company will mitigate this risk by regularly reviewing third party commodity pricing forecasts and considering hedging opportunities, as appropriate.
- Key personnel risk
The Group is dependent upon its executive management team. Whilst it has entered into contractual agreements at market rates with the aim of securing the services of these personnel, the retention of their services cannot be guaranteed. The development and success of the Group depends on its ability to recruit and retain high quality and experienced staff. The loss of the service of key personnel or the inability to attract additional qualified personnel as the Group grows could have an adverse effect on future financial performance. The Company mitigates this risk by regularly reviewing and revising, where necessary, executive management remuneration and incentivisation packages against market rates and by maintaining an open dialogue on key personnel matters.
- Foreign currency risk
Fluctuations in currency exchange rates, principally between the US Dollar and Kazakhstan Tenge could adversely impact the Group’s future earnings and cash flows. The Company mitigates this risk by maintaining appropriate internal foreign exchange rate policies.
Directors’ Responsibility Statement
We confirm that to the best of our knowledge:
- the condensed set of unaudited financial statements which have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and its undertakings included in the consolidation as a whole, as required by DTR 4.2.4R;
- the interim management report includes a fair review of the information required by DTR 4.2.7R; and
- the interim management report includes a fair review of the information required by DTR 4.2.8R.
This interim financial report for the six months ended 30 June 2026 has been approved by the Board and signed on its behalf by:
William Callewaert
Director
25 September 2026
Condensed unaudited Statement of Profit or Loss and Other Comprehensive Income for the six months ended 30 June 2026
Note
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited six-month period ended 30 June 2025
$000
Audited year
ended
31 December 2025
$000Revenue from customers (pricing at shipment)
2
1,818
2,533
4,524
Final pricing adjustments after delivery
2
-
(4)
7
Total revenue
2
1,818
2,529
4,531
Cost of sales
3
(2,320)
(3,354)
(6,253)
Gross loss
(502)
(825)
(1,722)
Other income
4
4
42
70
Administrative expenses
5
(1,620)
(1,547)
(3,565)
Distribution expenses
(111)
(59)
(137)
Other expenses
6
(22)
(36)
(504)
Loss from operating activities
(2,251)
(2,425)
(5,858)
Net finance cost
8
(966)
(1,072)
(2,557)
Loss before income tax
(3,217)
(3,497)
(8,415)
Income tax
-
-
-
Loss for the period
(3,217)
(3,497)
(8,415)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations
2,308
(523)
(261)
Total comprehensive loss for the period
(909)
(4,020)
(8,676)
Loss per share (basic and diluted)
16
(0.006)
(0.007)
(0.017)
These condensed unaudited financial statements were approved by the directors on 25 September 2026 and signed by:
_____________________________
William Callewaert
Director
Condensed unaudited Statement of Financial Position for the six months ended 30 June 2026
Note
Unaudited
30 June 2026
$000
Unaudited
30 June 2025
$000
Audited 31 December 2025
$000ASSETS
Non-current assets
Property, plant and equipment
9
3,322
3,237
3,605
Exploration and evaluation assets
10
11,066
8,975
10,480
Intangible assets
11
18
17
18
Prepayments
14
3
944
-
Total non-current assets
14,409
13,173
14,103
Current assets
Inventories
12
1,311
2,198
1,318
Trade and other receivables
13
1,940
2,083
1,307
Prepayments
14
1,188
732
931
Cash and cash equivalents
15
832
391
1,684
Total current assets
5,271
5,404
5,240
Total assets
19,680
18,577
19,343
EQUITY AND LIABILITIES
Equity
Share capital
63,313
56,118
61,212
Additional paid-in capital
397
397
397
Share-based payment reserve
76
42
76
Foreign currency translation reserve
(3,156)
(5,725)
(5,464)
Accumulated losses
(62,167)
(54,032)
(58,950)
Total equity
(1,537)
(3,200)
(2,729)
Non-current liabilities
Loans and borrowings
17
5,000
17,134
5,000
Long-term liabilities
84
-
85
Provisions
30
24
29
Total non-current liabilities
5,114
17,158
5,114
Current liabilities
Loans and borrowings
17
12,563
-
12,872
Trade and other payables
18
3,235
4,316
4,086
Interest payable
17
305
303
-
Total current liabilities
16,103
4,619
16,958
Total liabilities
21,217
21,777
22,072
Total equity and liabilities
19,680
18,577
19,343
Condensed unaudited Statement of Changes in Equity for the six months ended 30 June 2026
Share
capital
$000
Additional paid in capital
$000
Share-based
payment
reserve
$000
Foreign currency translation reserve
$000
Accumulated
losses
$000
Total
$000Balance at 1 January 2025
55,027
397
42
(5,202)
(50,535)
(271)
Loss for the year
-
-
-
-
(3,497)
(3,497)
Other comprehensive income
Exchange differences arising on translation of foreign operations
-
-
-
(523)
-
(523)
Total comprehensive loss for the period
-
-
-
(523)
(3,497)
(4,020)
Transactions with owners, recorded directly in equity
Shares issued, net of issue costs
1,091
-
-
-
-
1,091
Balance at 30 June 2025
56,118
397
42
(5,725)
(54,032)
(3,200)
Balance at 31 December 2025
61,212
397
76
(5,464)
(58,950)
(2,729)
Balance at 1 January 2026
61,212
397
76
(5,464)
(58,950)
(2,729)
Loss for the period
-
-
-
-
(3,217)
(3,217)
Other comprehensive loss
Exchange differences arising on translation of foreign operations
-
-
-
2,308
-
2,308
Total comprehensive loss for the period
-
-
-
2,308
(3,217)
(909)
Transactions with owners, recorded directly in equity
Shares issued, net of issue costs
2,101
-
-
-
-
2,101
Balance at 30 June 2026
63,313
397
76
(3,156)
(62,167)
(1,537)
Notes to the Condensed unaudited Financial Statements for the six months ended 30 June 2026
1 (a) Basis of preparation
These Condensed unaudited Financial Statements have been prepared in accordance with IAS34 ‘Interim Financial Reporting’ and International Financial Reporting Standards as adopted by the European Union (“IFRS”) on a going concern basis.
The same accounting policies and basis of preparation have been followed as adopted in the annual financial statements of the Group which were published on 30 April 2026.
(b) Going concern
The consolidated unaudited financial statements for the six months ended 30 June 2026 have been prepared in accordance with IFRS on a going concern basis.
The operations of the Group are financed from a combination of cash flows generated by the existing operation, bond issues and funds raised from shareholders and strategic investors. In common with many pre-production entities, the Group will need to raise further funds in order to progress from the feasibility study phase into construction and ultimately into production. The Directors consider the ability of the Company to raise further funding to be a material uncertainty.
With respect to the Bond Programme, a number of the tranches previously issued under the Bond Programme will come to maturity during 2026 and 2027 and the Company will need to either fund these redemptions in cash or by alternative non-cash methods. The Directors consider the ability of the Company to fund the upcoming redemptions required by the Bond Programme to be a material uncertainty. Further information on the tranches issued under the Bond Programme is disclosed at Note 17.
These conditions indicate the existence of a material uncertainty, which may cast doubt over the Group’s ability to continue as a going concern, and therefore that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include adjustments that would arise in the event of the Group not being able to continue as a going concern.
The Directors believe that the Company will be able to secure further funding to address the material uncertainties noted above and, therefore, the Company will continue as a going concern for at least the next 12 months. Accordingly, the Directors consider that it is appropriate that the Company adopts the going concern basis of accounting in preparation of these financial statements.
(c) Use of estimates and judgements
Preparing the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Judgements that relate to estimation uncertainty
Inventories (Note 12)
The Group holds material inventories which are assessed for impairment at each reporting date. The assessment of net realisable value requires consideration of future cost to process and sell and spot market prices at period end less applicable discounts. The estimates are based on market data and historical trends.
Trade and other receivables (Note 13)
The Group holds trade and other receivable balances at the period end which are assessed for recoverability at each reporting date. The assessment of recoverability is based on estimates of future receipts taking into consideration past receipt patterns and trends.
Judgements that do not relate to estimation uncertainty
Exploration and evaluation assets (Note 10)
The Group holds material exploration and evaluation assets and judgement is applied in determining whether impairment indicators exist under the Group’s accounting policy. In determining whether an impairment indicator exists management have considered the Group’s Feasibility Study on the asset, the strategic plans for exploration and future development and the status of the Subsoil Use Agreement. Judgement was required in determining that the application for deferral of obligations under the Subsoil Use Agreement is expected to be granted. In the event that approval is not received, the Group will consider the options available to it to effect approval under the provisions of the Kazakhstan national Subsoil Use legislation.
Additionally, judgement was required in determining that the Group’s exploration and evaluation asset should continue to be classified as such an asset rather than transitioning to classification as a development asset. Management has concluded that until the final investment decision for the development of the asset has been determined by the Board then the asset should continue to be classified as an exploration and evaluation asset.
(d) Unaudited status
These Condensed unaudited Financial Statements have not been audited or reviewed by the Group’s auditor.
2 Revenue
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000Sales of vanadium products
558
1,457
2,550
Sales of ferro-molybdenum
1,250
1,055
1,929
Sales of gravel and waste rock
-
-
45
Service revenue
10
21
-
Total revenue from customers under IFRS 15
1,818
2,533
4,524
Other revenue (adjustments to price after delivery and fair value changes)
-
(4)
7
Total revenue
1,818
2,529
4,531
Vanadium products
Under certain sales contracts the single performance obligation is the delivery of ammonium metavanadate (“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 of vanadium pentoxide for AMV 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 revenue initially received. 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.
Other revenue related to the change in the fair value of amounts receivable and payable under the sales contracts between the date of initial recognition and the period end resulting from market prices are recorded as other revenue.
3 Cost of sales
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000
Materials
1,418
2,162
4,361
Wages, salaries and related taxes
466
600
1,225
Depreciation
323
366
375
Electricity
59
67
136
Other
54
159
156
2,320
3,354
6,253
4 Other income
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000
Currency conversion gain
4
9
11
Other
-
33
59
4
42
70
5 Administrative expenses
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000Wages, salaries and related taxes
706
867
1,781
Professional services
92
63
235
Taxes other than income tax
-
18
54
Listing and financing expenses
456
234
498
Audit
71
136
170
Materials
16
16
36
Rent
37
21
64
Depreciation and amortisation
31
38
66
Insurance
30
14
46
Bank fees
9
10
18
Travel expenses
8
12
37
Communication and information services
7
7
15
Other
157
111
545
1,620
1,547
3,565
6 Other expenses
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000
Currency conversion loss
22
35
57
Write-down of inventory to net realisable value
-
-
205
Share-based payment expense
-
-
34
Other
-
1
208
22
36
504
7 Personnel costs
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000
Wages, salaries and related taxes
1,293
1,532
2,997
1,293
1,532
2,997
Personnel costs of US$450,000 (2025: US$502,000) have been charged to cost of sales, US$706,000 (2025: US$867,000) to administrative expenses and US$137,000 (2025: US$163,000) were charged to cost of inventories which were not yet sold as at the end of the period.
8 Finance costs
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000Net foreign exchange gain
(28)
79
558
Unwinding of discount on bonds
-
-
3
Interest expense on financial liabilities (bonds)
994
993
1,996
Net finance costs
966
1,072
2,557
9 Property, plant and equipment
Land and buildings
$000
Plant and equipment
$000
Vehicles
$000
Computers
$000
Other
$000
Construction in progress
$000
Total
$000Cost
Balance at 1 January 2025
4,410
3,448
452
42
267
66
8,685
Additions
-
101
-
-
3
-
104
Disposals
-
(12)
-
(4)
(2)
-
(18)
Foreign currency translation difference
27
20
3
-
1
-
51
Balance at 30 June 2025
4,437
3,557
455
38
269
66
8,822
Balance at 31 December 2025
4,623
3,723
470
33
257
68
9,174
Balance at 1 January 2026
4,623
3,723
470
33
257
68
9,174
Additions
35
13
-
-
6
-
54
Disposals
-
(4)
-
-
-
-
(4)
Foreign currency translation difference
159
128
17
1
8
3
316
Balance at 30 June 2026
4,817
3,860
487
34
271
71
9,540
Depreciation
Balance at 1 January 2025
1,208
3,448
341
31
122
-
5,150
Depreciation for the period
200
201
15
3
10
-
429
Disposals
-
(12)
-
(4)
(2)
-
(18)
Foreign currency translation difference
97
(80)
1
-
6
-
24
Balance at 30 June 2025
1,505
3,557
357
30
136
-
5,585
Balance at 31 December 2025
1,647
3,363
382
26
151
-
5,569
Balance at 1 January 2026
1,647
3,363
382
26
151
-
5,569
Depreciation for the period
212
222
12
1
7
-
454
Disposals
-
(4)
-
-
-
-
(4)
Foreign currency translation difference
54
121
1
3
2
9
-
199
Balance at 30 June 2026
1,913
3,702
407
29
167
-
6,218
Carrying amounts
At 1 January 2025
3,202
-
111
11
145
66
3,535
At 30 June 2025
2,932
-
98
8
133
66
3,237
At 31 December 2025
2,976
360
88
7
106
68
3,605
At 30 June 2026
2,904
158
80
5
104
71
3,322
Depreciation expense of US$323,000 (2025: US$366,000) has been charged to cost of sales, excluding cost of finished goods that were not sold at period end, US$31,000 (2025: US$38,000) to administrative expenses, and US$100,000 has been charged to the cost of finished goods that were not sold at the end of the period (2025: US$9,000).
10 Exploration and evaluation assets
The Group’s exploration and evaluation assets relate to the Balasausqandiq deposit. As at 30 June 2026, the carrying value of exploration and evaluation assets was US$11.1m (2025: US$9.0m).
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited
year ended
31 December 2025
$000Balance at 1 January
10,480
7,999
7,999
Additions (Stage 1 feasibility study)
386
2,101
3,387
Foreign currency translation difference
200
(1,125)
(906)
Balance at 30 June / 31 December
11,066
8,975
10,480
11 Intangible assets
Mineral rights
$000
Patents
$000
Computer software
$000
Total
$000Cost
Balance at 1 January 2025
73
31
3
107
Additions
-
-
-
-
Foreign currency translation difference
-
1
-
1
Balance at 30 June 2025
73
32
3
108
Balance at 31 December 2025
76
33
3
112
Balance at 1 January 2026
76
33
3
112
Additions
-
-
-
-
Foreign currency translation difference
3
1
-
4
Balance at 30 June 2026
79
34
3
116
Amortisation
Balance at 1 January 2025
73
13
3
89
Amortisation for the year
-
1
-
1
Foreign currency translation difference
-
1
-
1
Balance at 30 June 2025
73
15
3
91
Balance at 31 December 2025
76
15
3
94
Balance at 1 January 2026
76
15
3
94
Amortisation for the year
-
1
-
1
Foreign currency translation difference
3
-
-
3
Balance at 30 June 2026
79
16
3
98
Carrying amounts
At 1 January 2025
-
18
-
18
At 30 June 2025
-
17
-
17
At 31 December 2025
-
18
-
18
At 30 June 2026
-
18
-
18
During the six months ended 30 June 2026 and 2025, amortisation of intangible assets was charged to administrative expenses.
12 Inventories
Unaudited
30 June 2026
$000
Unaudited 30 June 2025 $000
Audited 31 December 2025
$000Raw materials and consumables
703
1,548
1,060
Finished goods
580
528
230
Work in progress
28
122
28
1,311
2,198
1,318
During the six months ended 30 June 2026, inventories expensed to profit and loss amounted to US$1.4m (2025:US$2.2m).
13 Trade and other receivables
Current
Unaudited
30 June 2026$000
Unaudited
30 June 2025
Audited 31 December 2025
$000
$000
Trade receivables from third parties
637
914
264
Due from employees
98
37
76
VAT receivable
1,281
1,190
1,040
2,016
2,141
1,380
Expected credit loss provision for receivables
(76)
(58)
(73)
1,940
2,083
1,307
The expected credit loss provision for receivables 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 receivables and default status.
14 Prepayments
Unaudited
30 June 2026
$000
Unaudited
30 June 2025
$000
Audited 31 December 2025
$000Non-current
Prepayments
3
944
1
3
944
1
Current
Prepayments for goods and services
1,188
732
931
1,188
732
931
15 Cash and cash equivalents
Unaudited
30 June 2026
$000
Unaudited
30 June 2025
$000
Audited 31 December 2025
$000Cash at current bank accounts
753
324
1,613
Cash at bank deposits
72
67
70
Petty cash
7
-
1
Cash and cash equivalents
832
391
1,684
16 Equity
(a) Share capital
Number of shares unless otherwise stated Ordinary shares
Unaudited
30 June 2026
Unaudited
30 June 2025
Audited 31 December 2025
Par value
-
-
-
Outstanding at beginning of period / year
559,129,629
483,222,238
483,222,238
Shares issued
28,621,701
10,422,098
75,907,391
Outstanding at end of period / year
587,751,330
493,644,336
559,129,629
Ordinary shares
All shares rank equally. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.
On 10 March 2026, the Company issued 28,621,701 ordinary shares of nil par value in the capital of the Company for gross proceeds of £1,574,194.
Reserves
Share capital: Value of shares issued less costs of issuance.
Additional paid in capital: Amounts due to shareholders which were waived.
Share-based payment: Share options issued during the period.
Foreign currency translation reserve: Foreign currency differences on retranslation of results from functional to presentational currency and foreign exchange movements on intercompany balances considered to represent net investments which are considered as permanent equity.
Accumulated losses: Cumulative net losses.
(b) Dividends
No dividends were declared for the six months ended 30 June 2026 (2025: US$ nil).
(c) Loss per share (basic and diluted)
The calculation of basic and diluted loss per share has been based on the loss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding. There are no convertible bonds and convertible preferred stock, so basic and diluted losses are equal.
- Loss attributable to ordinary shareholders (basic and diluted)
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited year ended
31 December 2025
$000Loss for the period, attributable to owners of the Company
(3,217)
(3,497)
(8,415)
Loss attributable to ordinary shareholders
(3,217)
(3,497)
(8,415)
- Weighted-average number of ordinary shares (basic and diluted)
Shares
Unaudited
six-month
period ended
30 June 2026
Unaudited
six-month
period ended
30 June 2025
Audited year ended
31 December 2025Issued ordinary shares at 1 January (after subdivision)
559,129,629
483,222,238
483,222,238
Effect of shares issued (weighted)
22,975,776
7,313,189
22,090,787
Weighted-average number of ordinary shares at period / year end
582,105,405
490,535,427
505,313,025
Loss per share of common stock attributable to the Company:
(Basic and diluted / US$)
(0.0055)
(0.0071)
(0.017)
17 Loans and borrowings
In 2023 the Company launched the Bond Programme and has issued four tranches of unsecured corporate bonds under the Programme with effective interest rates of 9.2%, 10.4%, 11% and 13.5% respectively.
With respect to the first tranche of bonds (2023), investors subscribed for a total of 1,500 bonds with a nominal value of US$2,000 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 9%, paid twice-yearly. The bonds have been listed on the Astana International Exchange (“AIX”) with ISIN number KZX000001474. These bonds were redeemed in full after the period end, see Note 22.
With respect to the second tranche of bonds (2023), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 10%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001623.
With respect to the third tranche of bonds (2024), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 11%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001946. These bonds were redeemed in full after the period end, see Note 22.
With respect to the fourth tranche of bonds (2024), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term with an option to redeem 12 months early and bear a coupon rate of 13.5%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000003348.
Unaudited
30 June 2026
$000
Unaudited
30 June 2025
$000
Audited 31 December 2025
$000Non-current liabilities
Bonds payable
5,000
17,134
5,000
5,000
17,134
5,000
Current liabilities
Bonds payable
12,563
-
12,563
Interest payable
305
303
309
12,868
303
12,872
Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financing transactions below:
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited year ended 31 December 2025
$000At 1 January
17,872
17,566
17,566
Cash flows:
-Interest paid
(998)
(1,123)
(2,120)
Total
16,874
16,443
15,446
Non-cash flows:
- Interest accruing in the period
994
993
1,996
- Bond discount / premium
-
-
430
At 30 June / 31 December
17,868
17,436
17,872
18 Trade and other payables
Unaudited
30 June 2026
$000
Unaudited
30 June 2025
$000
Audited 31 December 2025
$000Trade payables
2,297
2,861
2,910
Debt to employees
49
269
189
Other taxes
245
381
186
Advances received
644
805
801
3,235
4,316
4,086
19 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 Group’s 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 for 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.
20 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 Group’s assets are primarily concentrated in the Republic of Kazakhstan and the Group’s revenues are derived from operations in, and connected with, the Republic of Kazakhstan.
Unaudited six-month period ended 30 June 2026
Processing
$000
Subsoil
$000
Corporate
$000
Total
$000Revenue
1,818
-
-
1,818
Cost of sales
(2,320)
-
-
(2,320)
Other income
3
-
1
4
Administrative expenses
(375)
(30)
(1,215)
(1,620)
Distribution & other expenses
(133)
-
-
(133)
Finance costs
(16)
-
(950)
(966)
Loss before tax
(1,023)
(30)
(2,164)
(3,217)
Unaudited six-month period ended 30 June 2025
Processing
$000
Subsoil
$000
Corporate
$000
Total
$000Revenue
2,529
-
-
2,529
Cost of sales
(3,354)
-
-
(3,354)
Other income
42
-
-
42
Administrative expenses
(390)
(28)
(1,129)
(1,547)
Distribution & other expenses
(95)
-
-
(95)
Finance costs
(283)
-
(789)
(1,072)
Loss before tax
(1,551)
(28)
(1,918)
(3,497)
Audited year ended 31 December 2025
Processing
$000
Subsoil
$000
Corporate
$000
Total
$000Revenue
4,531
-
-
4,531
Cost of sales
(6,253)
-
-
(6,253)
Other income
69
-
1
70
Administrative expenses
(1,078)
(28)
(2,459)
(3,565)
Impairment charge
(470)
-
(34)
(504)
Distribution & other expenses
(137)
-
-
(137)
Finance costs
(525)
-
(2,032)
(2,557)
Loss before tax
(3,863)
(28)
(4,524)
(8,415)
Included in revenue arising from processing are revenues of US$1.5m (2025: US$2.2m) which arose from sales to two of three Group’ largest customers. No other single customer contributes 10 per cent or more to the Group’s revenue.
All of the Group’s assets are attributable to the Group’s processing operations.
Sales to the Group’s largest customers during the six months ended 30 June 2026 were as follows:
Customer A US$ 0.8m (49%) (2025:US$ nil)
Customer B US$ 0.4m (26%) (2025: US$0.8m)
Customer C US$ 0.3m (20%) (2025: US$nil)
21 Related party transactions
Transactions with management and close family members
Management remuneration
Key management personnel received the following remuneration during the year, which is included in personnel costs (see Note 7):
Unaudited
six-month
period ended
30 June 2026
$000
Unaudited
six-month
period ended
30 June 2025
$000
Audited year ended 31 December 2025 $000
Wages, salaries and related taxes
450
538
1,074
Wages and salaries outstanding at 30 June 2026 is equal to US$ nil (2025: US$ nil).
22 Subsequent events
On 31 July 2026 the Company issued 167,647,046 ordinary shares of nil par value in the Company raising gross proceeds of £5,700,000. The funds raised were used to repay the outstanding principal and accrued interest due to the bondholders of Tranche 1 and Tranche 3 of the Bond Programme.
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