REG - Ferro-Alloy Resrcs. - Interim Results and feasibility study update
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RNS Number : 2972B Ferro-Alloy Resources Limited 30 September 2025
30 September 2025
Ferro-Alloy Resources Limited
("Ferro-Alloy" or "the Company" or "the Group")
Interim Results for the six months ended 30 June 2025 and feasibility study
update
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 2025 and a
revised publication date for the feasibility study.
Overview
The Company's main focus during the year to date has been the completion of
the feasibility study (the "Study") into the development of the Balasausqandiq
vanadium deposit (the "Project"). The Study was targeted to be published by
30 September 2025 and is substantially complete but requires some final
adjustments and confirmations from contributing consultants. The Company is
confident that it will be published by the middle of October 2025.
Research and development
As previously announced, the main purpose of the existing process plant was
changed to a research and development facility, with concentrates only being
treated when profitable to do so. The research and development has been
targeted at areas that will assist in the development of the Project and
marketing its products.
· Carbon black substitute ("CBS"): the Group commissioned a pilot
plant, capable of producing 400 kg per hour of the new CBS product announced
earlier in the year. Production of commercial samples of this new type of CBS,
to be made from the high carbon / low vanadium waste rock scheduled to be
stripped during the mining of Ore-Body 1, has commenced. This pilot plant uses
a dry milling process and has operated without problems, allowing the Group to
test this method of milling for use in the Project, where it will be
applicable to milling the original CBS, made from concentrated tailings, as
well as the new form of CBS.
· Vanadium oxides: the Group has commissioned the dissociation oven
required for the production of vanadium oxides suitable for the production of
battery electrolyte for vanadium redox flow batteries. Process optimisation
and product testing are underway. Although the making of such oxides does not
form part of the base case of the Study, it is anticipated that this part of
the vanadium market will grow dramatically in the coming years.
Understanding this technology and proving its feasibility will allow the Group
to make the minor adjustments necessary to supply this market at a later date
when the market has developed.
· High purity vanadium pentoxide: the Group has commissioned the
recrystallisation circuit and centrifuge drying required for the production of
high purity vanadium pentoxide or other vanadium oxides. High purity products
are required for the manufacture of battery electrolyte and other chemical
purposes and commands a price premium over standard vanadium pentoxide.
Processing
· Despite the focus of the existing plant being on research and
development, the Group procured and treated vanadium-bearing concentrates that
were considered sufficiently profitable to process.
· As a result, the existing plant produced 151 tonnes of vanadium
pentoxide (mainly as ammonium metavanadate) in the first six months of the
year (H1 2024: 169.2 tonnes) and 27.8 tonnes of molybdenum (in
ferro-molybdenum) (H1 2024: 14 tonnes).
Financial
· Total revenues of US$2.5 million for the period (H1 2024: US$2.1
million) reflected the processing of concentrates with a higher molybdenum
content than in the prior year, benefiting from the currently high molybdenum
prices.
· Overall loss for the period was US$3.5 million (H1 2024: loss of
US$3.99 million).
· Cash balance of US$0.4 million at the period end and US$0.5 million
as at 23 September 2025.
· The Group has appointed Northcott Capital Limited Northcott, in
partnership with Oval Advisory Limited, as lead financial adviser with respect
to the financing of the Project.
Corporate
· During the period, the Company issued 10,422,098 ordinary shares of
nil par value in the capital of the Company in lieu of cash for the payment of
non-executive director fees, payment of certain Group suppliers and fulfilment
of a share subscription received from its Astana International Exchange market
maker.
Nick Bridgen, CEO of Ferro-Alloy Resources said:
"The results of the research and development projects at the existing plant
have been impressive. The Company is positioned to benefit both from the
anticipated growth in vanadium demand for energy storage and we now have a
superior milling process to develop the fast-moving advent of our carbon black
substitute product.
We are eagerly awaiting the imminent publication of the feasibility study to
demonstrate the preeminent financial and operating characteristics of the
Balasausqandiq project."
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 Toby Gibbs / Lucy Bowden +44 207 408 4090
(Joint Corporate Broker)
Panmure Liberum Limited Scott Mathieson / John More +44 20 3100 2000
(Joint Corporate Broker)
BlytheRay (Financial PR) Tim Blythe / Megan Ray / Will Jones +44 20 7138 3204
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 carbon black substitute ("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 ("V(2)O(5)") equating to 203,364 contained tonnes of
V(2)O(5). 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.
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 Group has been engaged primarily in carrying out a feasibility study into
the giant Balasausqandiq vanadium project. The study will be announced shortly
after this Interim Financial Report and will be the subject of a separate
announcement.
Concurrently, the Group operates a small-scale process plant which treats
vanadium-bearing concentrates when it is profitable to do so, but with a
strategic focus on research and development.
Research and development
The Group continues to progress several research and development initiatives at the existing plant, aimed at building capability for use in the planned major development of the Balasausqandiq project.
Carbon black substitute ("CBS"): The company commissioned a pilot plant,
capable of producing 400 kg per hour of the new CBS product announced earlier
in the year. Production of commercial samples of this new type of CBS, to be
made from the high carbon / low vanadium waste rock scheduled to be stripped
during the mining of Ore-Body 1, has commenced.
Vanadium oxides: the Group has commissioned the dissociation oven required for
the production of vanadium oxides suitable for the production of battery
electrolyte for vanadium redox flow batteries. Process optimisation and
product testing are underway.
High purity vanadium pentoxide: the Group has commissioned the
recrystallisation circuit and centrifuge drying required for the production of
high purity vanadium pentoxide or other vanadium oxides. High purity products
are required for the manufacture of battery electrolyte and other chemical
purposes and commands a price premium over standard vanadium pentoxide.
Processing
Despite the focus of the existing plant being on research and development, the
Group procured and treated vanadium-bearing concentrates that were considered
sufficiently profitable to process.
As a result, the existing plant produced in the first six months of the year
151 tonnes (2023: 169.2 tonnes) of vanadium pentoxide (mainly as ammonium
metavanadate) and 27.8 tonnes (2023: 14 tonnes) of molybdenum (in
ferro-molybdenum).
Corporate
During the period, the Company issued 10,422,098 ordinary shares of nil par
value in the capital of the Company in lieu of cash for the payment of
non-executive director fees, payment of certain Group suppliers and
fulfillment of a share subscription received from its Astana International
Exchange market maker. See note 16 for further details.
Earnings and cash flow
The Group generated total revenues of US$2.5m for the period compared to
US$2.1m for the first six months of 2024, representing an increase in overall
revenues of 16.7%. The increase in revenue reflects the processing of
concentrates with a higher molybdenum content for which prices are more
favourable than vanadium pentoxide.
The cost of sales for the period under review was US$3.4m in line, given the
volumes and nature of concentrates processed during the period, with the first
six months of 2024 (2024: US$3.6m).
Administrative expenses for the period were US$1.5m (2024: US$1.9m)
representing an overall decrease of US$0.4m mainly attributable to reductions
in employment costs and the costs associated with the Company's listing and
the raising of debt finance.
The Group made a loss before and after tax of US$3.5m (2024: loss of
US$3.99m).
Net cash outflows used in operating activities were US$0.5m (2024: cash
outflow of US$2.6m). Net cash used in investing activities during the period
was US$2.2m (2024: cash outflow of US$1.1m) an increased outflow of US$1.1m
attributable to the capitalisation of feasibility study costs. Net cash
outflow from financing activities was US$1.1m (2024: net cash inflow of
US$4.5m) representing the payment of interest on the bonds previously issued
by the Company under the Kazakhstan Bond Programme.
Balance sheet review
At the period end, non-current assets totalled US$13.2m (2024: US$14.1m)
reflecting, in the main, the impairment of the Group's plant and equipment
during the prior financial year.
Current assets, excluding cash balances, totalled US$5m at the period end
compared to US$5.1m for the prior period.
The Group held an aggregate cash balance of US$0.4m at the period end (2024:
US$2.5m) and US$0.5m as at 23 September 2025.
The Group held non-current liabilities of US$17.2m at the period end (2024:
US$12.4m) representing the value of the Company's bonds sold since the
inception of the Kazakhstan Bond Programme.
Current liabilities at the period end were US$4.6m (2024: US$3.9m) comprising
of trade payables and accrued bond interest.
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. In its use for alloying steel, the greater strength and performance
imparted reduces the amount of steel required.
The CO(2) 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 carbon black
substitute product 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
(a) Current processing operations
Current processing operations make up a small part of the Group's expected
future value and allow the Group to gain valuable experience of the vanadium
and carbon black industries. The principal risks of this operation are the
prices of its products (vanadium, molybdenum and nickel), availability of
profitable vanadium-bearing concentrates and the efficiency of recovery of
products from those concentrates.
The Group is constantly reviewing the market opportunities for supplies of
profitable vanadium-bearing concentrates from reliable suppliers that can
deliver concentrates on a timely basis. The Group aims to extract all the
useful components of the raw materials so that ultimately no residues remain
on site and so that the maximum value is obtained from each tonne treated.
(b) Balasausqandiq project
The Balasausqandiq 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 Group's
operations and financial position. The Group 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.
(c) 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
Group's exports flow. The Group continues to review alternative transit routes
for raw material imports and product exports through the West of Kazakhstan,
either via the Caspian Sea or overland south of 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.
(d) Financing risk
The Balasausqandiq project will require substantial funds to be raised in debt
and equity which will be dependent upon market conditions at the time of
fundraising.
In March of 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 the 2022 and 2025 equity
fundraises, investments totalling US$14.5m have already been made and Vision
Blue has the right to subscribe a further US$2.5m at the original deal price
of 9 pence per share at any time up to two months after the announcement of
the Phase 1 feasibility study. Vision Blue also has further options to
subscribe up to US$30m at higher prices to partially finance the construction
of the project.
(e) Climate change risk
The Group has not identified any particular climate change related scenarios
that would likely have a significant impact on the Balasausqandiq 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.
(f) 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.
(g) Commodity price risk
As already noted above, the success of the Group 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 Group's future financial performance.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
a. 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;
b. the interim management report includes a fair review of the information
required by DTR 4.2.7R; and
c. 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 2025 has been
approved by the Board and signed on its behalf by:
William Callewaert
Director
29 September 2025
Condensed unaudited Statement of Profit or Loss and Other Comprehensive Income Note Unaudited Unaudited six-month period ended 30 June 2024 $000 Audited year
for the six months ended 30 June 2025
six-month
ended
period ended
31 December 2024
30 June 2025 $000
$000
Revenue from customers (pricing at shipment) 2 2,533 2,170 4,722
Final pricing adjustments after delivery 2 (4) (21) 16
Total revenue 2 2,529 2,149 4,738
Cost of sales 3 (3,354) (3,622) (7,550)
Gross loss (825) (1,473) (2,812)
Other income 4 42 7 50
Administrative expenses 5 (1,547) (1,850) (3,022)
Impairment loss - - (954)
Distribution expenses (59) (58) (149)
Other expenses 6 (36) (24) (563)
Loss from operating activities (2,425) (3,398) (7,450)
Net finance cost 8 (1,072) (593) (1,979)
Loss before income tax (3,497) (3,991) (9,429)
Income tax - - -
Loss for the period (3,497) (3,991) (9,429)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations (523) (761) (1,080)
Total comprehensive loss for the period (4,020) (4,752) (10,509)
Loss per share (basic and diluted) 16 (0.007) (0.008) (0.020)
These condensed unaudited financial statements were approved by the directors
on 29 September 2025 and signed by:
_____________________________
William Callewaert
Director
Condensed unaudited Statement of Financial Position Note Unaudited Unaudited Audited 31 December 2024
for the six months ended 30 June 2025
30 June 2025
30 June 2024 $000
$000 $000
ASSETS
Non-current assets
Property, plant and equipment 9 3,237 5,404 3,535
Exploration and evaluation assets 10 8,975 7,836 7,999
Intangible assets 11 17 20 18
Prepayments 14 944 853 971
Total non-current assets 13,173 14,113 12,523
Current assets
Inventories 12 2,198 1,800 874
Trade and other receivables 13 2,083 2,152 1,237
Prepayments 14 732 1,166 853
Cash and cash equivalents 15 391 2,528 3,777
Total current assets 5,404 7,646 6,741
Total assets 18,577 21,759 19,264
EQUITY AND LIABILITIES
Equity
Share capital 56,118 55,027 55,027
Additional paid-in capital 397 397 397
Share-based payment reserve 42 20 42
Foreign currency translation reserve (5,725) (4,883) (5,202)
Accumulated losses (54,032) (45,097) (50,535)
Total equity (3,200) 5,464 (271)
Non-current liabilities
Loans and borrowings 17 17,134 12,396 17,134
Provisions 24 30 24
Total non-current liabilities 17,158 12,426 17,158
Current liabilities
Trade and other payables 18 4,316 3,636 1,843
Deferred income 19 - - 102
Interest payable 17 303 233 432
Total current liabilities 4,619 3,869 2,377
Total liabilities 21,777 16,295 19,535
Total equity and liabilities 18,577 21,759 19,264
Condensed unaudited Statement of Changes in Equity Share Additional paid in capital Share-based Foreign currency translation reserve Accumulated Total
for the six months ended 30 June 2025
capital
$000
payment
$000
losses
$000
$000
reserve
$000
$000
Balance at 1 January 2024 55,027 397 20 (4,122) (41,106) 10,216
Loss for the year - - - - (3,991) (3,991)
Other comprehensive income
Exchange differences arising on translation of foreign operations - - - (761) - (761)
Total comprehensive loss for the year - - - (761) (3,991) (4,752)
Balance at 30 June 2024 55,027 397 20 (4,883) (45,097) 5,464
Balance at 31 December 2024 55,027 397 42 (5,202) (50,535) (271)
Balance at 1 January 2025 55,027 397 42 (5,202) (50,535) (271)
Loss for the period - - - - (3,497) (3,497)
Other comprehensive loss
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)
Condensed unaudited Statement of Cash Flows Unaudited Unaudited Audited
for the six months ended 30 June 2025
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Cash flows from operating activities Note
Loss for the period (3,497) (3,991) (9,429)
Adjustments for:
Depreciation and amortisation 3, 5 404 391 962
Impairment of plant and equipment - - 954
Profit on sale of plant and equipment - - (42)
Write-off of property, plant and equipment - 3 2
Write-down of inventory to net realisable value - - 71
Write-off of prepayments - - 273
Share-based payment expense - - 22
Net finance costs 8 1,072 593 1,979
Cash used in operating activities before changes in working capital (2,021) (3,004) (5,208)
Change in inventories (1,324) 183 1,109
Change in trade and other receivables (846) (836) 79
Change in prepayments 148 (369) 47
Change in trade and other payables 3,451 1,495 (298)
Change in deferred income 19 102 (102) -
Net cash used in operating activities (490) (2,633) (4,271)
Cash flows from investing activities
Acquisition of property, plant and equipment 9 (104) (135) (204)
Acquisition of exploration and evaluation assets 10 (2,101) (1,002) (2,113)
Acquisition of intangible assets 11 - (1) (3)
Proceeds on fixed asset disposal - 45
Net cash used in investing activities (2,205) (1,138) (2,275)
Cash flows from financing activities
Proceeds from issue of share capital 16 10 - -
Proceeds from borrowings 17 - 5,003 10,003
Issue cost on borrowing - - (565)
Interest paid 17 (1,123) (523) (1,041)
Net cash used in financing activities (1,113) 4,480 8,397
Net (decrease) / increase in cash and cash equivalents (3,808) 709 1,851
Cash and cash equivalents at the beginning of the period / year 15 3,777 1,952 1,952
Effect of movements in exchange rates on cash and cash equivalents 422 (133) (26)
Cash and cash equivalents at the end of the period / year 391 2,528 3,777
Notes to the Condensed unaudited Financial Statements for the six months ended 30 June 2025
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 29 April 2025.
(b) Going concern
The consolidated unaudited financial statements for the six months ended 30
June 2025 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.
Following the publication of the Balasausqandiq Phase 1 feasibility study, the
Directors are confident based on their previous experience and success in
raising capital and the results of the feasibility study to date, that the
Company will be able to secure further funding and will, therefore, continue
as a going concern for at least the next 12 months.
Accordingly, the Directors believe that it is appropriate that the Company
adopts the going concern basis of accounting in preparation of these financial
statements but note that the requirement to raise further funding is
considered to be a material uncertainty. The financial statements do not
include the adjustments that would be required if the Group was unable to
continue as a going concern.
(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.
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 the period end
less applicable discounts. The estimates are based on market data and
historical trends.
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 that no impairment indicator exists
management have considered the Competent Person's Report on the asset, the
strategic plans for exploration and future development and the status of the
Subsoil Use Agreement ("SUA"). Judgement was required in determining that a
current application for deferral of obligations under the SUA will be granted
and management anticipate such approvals being provided given their
understanding of the Kazakh market and plans for the asset.
(d) Unaudited status
These Condensed unaudited Financial Statements have not been audited or
reviewed by the Group's auditor.
2 Revenue
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Sales of vanadium products 1,457 1,264 3,076
Sales of ferro-molybdenum 1,055 720 1,517
Tolling revenue - 179 -
Service revenue 21 7 129
Total revenue from customers under IFRS 15 2,533 2,170 4,722
Other revenue (adjustments to price after delivery and fair value changes) (4) (21) 16
Total revenue 2,529 2,149 4,738
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 is recorded as other revenue.
3 Cost of sales
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Materials 2,162 2,438 4,729
Wages, salaries and related taxes 600 659 1,401
Depreciation 366 355 783
Electricity 67 60 139
Other 159 110 498
3,354 3,622 7,550
4 Other income
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Currency conversion gain 9 3 5
Other 33 4 45
42 7 50
5 Administrative expenses
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Wages, salaries and related taxes 867 955 1,688
Professional services 63 120 332
Taxes other than income tax 18 - 71
Listing and financing expenses 234 356 163
Audit 136 107 124
Materials 16 22 48
Rent 21 37 37
Depreciation and amortisation 38 36 70
Insurance 14 43 45
Bank fees 10 5 18
Travel expenses 12 23 44
Communication and information services 7 9 16
Other 111 137 366
1,547 1,850 3,022
6 Other expenses
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Currency conversion loss 35 20 49
Write-down of inventory to net realisable value - - 71
Write-down of obsolete assets - - 2
Impairment loss - - 273
Share-based payment expense - - 22
Other 1 4 146
36 24 563
7 Personnel costs
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Wages, salaries and related taxes 1,532 1,702 3,640
1,532 1,702 3,640
Personnel costs of US$502,000 (2024: US$537,000) have been charged to cost of sales, US$867,000 (2024: US$955,000) to administrative expenses and US$163,000 (2024: US$210,000) were charged to cost of inventories which were not yet sold as at the end of the period.
8 Finance costs
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Net foreign exchange gain 79 (28) 337
Unwinding of discount on bonds - - 302
Interest expense on financial liabilities (bonds) 993 621 1,340
Net finance costs 1,072 593 1,979
9 Property, plant and equipment
Land and buildings Plant and equipment Vehicles Computers Other Construction in progress Total
$000 $000 $000 $000 $000 $000 $000
Cost
Balance at 1 January 2024 5,015 3,822 522 49 256 242 9,906
Additions - 81 - 2 - 52 135
Transfers - 194 - - - (194) -
Disposals - (3) - - (1) - (4)
Foreign currency translation difference (179) (150) (19) (1) (9) (2) (360)
Balance at 30 June 2024 4,836 3,944 503 50 246 98 9,677
Balance at 31 December 2024 4,410 3,448 452 42 267 66 8,685
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
Depreciation
Balance at 1 January 2024 851 2,621 361 33 89 - 3,955
Depreciation for the period 226 227 17 3 10 - 483
Disposals - (1) - - - - (1)
Foreign currency translation difference (41) (104) (14) (1) (4) - (164)
Balance at 30 June 2024 1,036 2,743 364 35 95 - 4,273
Balance at 31 December 2024 1,208 3,448 341 31 122 - 5,150
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 2024 1,505 3,557 357 30 136 - 5,585
Carrying amounts
At 1 January 2024 4,164 1,201 161 16 167 242 5,951
At 30 June 2024 3,800 1,201 139 15 151 98 5,404
At 31 December 2024 3,202 - 111 11 145 66 3,535
At 30 June 2025 2,932 - 98 8 133 66 3,237
Depreciation expense of US$366,000 (2024: US$355,000) has been charged to cost
of sales, excluding cost of finished goods that were not sold at year-end,
US$38,000 (2024: US$36,000) to administrative expenses, and US$9,000 has been
charged to the cost of finished goods that were not sold at the end of the
period (2024: US$96,000).
Construction in progress relates to upgrades to the processing plant.
10 Exploration and evaluation assets
The Group's exploration and evaluation assets relate to the Balasausqandiq
deposit. During the six month period ended 30 June 2025, the Group capitalised
the costs of technical design, sample test-work and project management costs,
all relating to the Group's Phase 1 feasibility study. As at 30 June 2025, the
carrying value of exploration and evaluation assets was US$9.0m (2024:
US$7.8m).
Unaudited Unaudited Audited
six-month
six-month
year ended
period ended
period ended
31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
Balance at 1 January 7,999 7,145 7,145
Additions (Phase 1 feasibility study) 2,101 1,002 1,619
Foreign currency translation difference (1,125) (311) (765)
Balance at 30 June / 31 December 8,975 7,836 7,999
11 Intangible assets
Mineral rights Patents Computer software Total
$000 $000 $000 $000
Cost
Balance at 1 January 2024 84 34 3 121
Additions - 1 - 1
Foreign currency translation difference (3) (1) - (4)
Balance at 30 June 2024 81 34 3 118
Balance at 31 December 2024 73 31 3 107
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
Amortisation
Balance at 1 January 2024 84 14 3 101
Amortisation for the year - 1 - 1
Foreign currency translation difference (3) (1) - (4)
Balance at 30 June 2024 81 14 3 98
Balance at 31 December 2024 73 13 3 89
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
Carrying amounts
At 1 January 2024 - 20 - 20
At 30 June 2024 - 20 - 20
At 31 December 2024 - 18 - 18
At 30 June 2025 - 17 - 17
During the six months ended 30 June 2025 and 2024, amortisation of intangible
assets was charged to administrative expenses.
12 Inventories
Unaudited Audited 31 December 2024
30 June 2025
$000
$000
Unaudited 30 June 2024 $000
Raw materials and consumables 1,548 815 516
Finished goods 528 975 287
Work in progress 122 10 71
2,198 1,800 874
During the six months ended 30 June 2025, inventories expensed to profit and
loss amounted to US$2.2m (2024:US$2.4m).
13 Trade and other receivables
Current Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000 $000
Trade receivables from third parties 914 1,215 319
Due from employees 37 20 -
VAT receivable 1,190 918 781
Other receivables - 63 195
2,141 2,216 1,295
Expected credit loss provision for receivables (58) (64) (58)
2,083 2,152 1,237
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 receivable and default status.
14 Prepayments
Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000
$000
Non-current
Prepayments 944 853 971
944 853 971
Current
Prepayments for goods and services 732 1,166 853
732 1,166 853
15 Cash and cash equivalents
Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000
$000
Cash at current bank accounts 324 551 209
Cash at bank deposits 67 1,976 3,567
Petty cash - 1 1
Cash and cash equivalents 391 2,528 3,777
16 Equity
(a) Share capital
Number of shares unless otherwise
stated
Ordinary shares
Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
Par value - - -
Outstanding at beginning of year 483,222,238 483,222,238 483,222,238
Shares issued 10,422,098 - -
Outstanding at end of period / year 493,644,336 483,222,238 483,222,238
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 6 January 2025, the Company issued 1,684,160 ordinary shares of nil par
value in the capital of the Company in lieu of cash for the payment of
non-executive director fees (1,151,724 ordinary shares issued in lieu of
US$142,500) and certain Group suppliers (532,436 ordinary shares issued in
lieu of US$65,877). Additionally, the Company received a share subscription of
US$10,000 for 80,823 ordinary shares of nil par value in the capital of the
Company from its Astana International Exchange market maker.
On 13 March 2025, the Company issued a total of 8,657,115 ordinary shares of
nil par value in the capital of the Company in lieu of cash (US$872,552.76)
for the payment of a Group supplier.
Reserves
Share capital: Value of shares issued less costs of issuance.
Additional paid in capital: Amounts due to shareholders which were waived.
Share-based payment: Share options issued during the period.
Foreign currency translation reserve: Foreign currency differences on
retranslation of results from functional to presentational currency and
foreign exchange movements on intercompany balances considered to represent
net investments which are considered as permanent equity.
Accumulated losses: Cumulative net losses.
(b) Dividends
No dividends were declared for the six months ended 30 June 2025 (2024: US$
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.
(i) Loss attributable to ordinary shareholders (basic and
diluted)
Unaudited Unaudited Audited year ended
six-month
six-month
31 December 2024
period ended
period ended
$000
30 June 2025
30 June 2024
$000
$000
Loss for the period, attributable to owners of the Company (3,497) (3,991) (9,429)
Loss attributable to ordinary shareholders (3,497) (3,991) (9,429)
(ii) Weighted-average number of ordinary shares (basic and
diluted)
Shares Unaudited Unaudited Audited year ended
six-month
six-month
31 December 2024
period ended
period ended
30 June 2025
30 June 2024
Issued ordinary shares at 1 January (after subdivision) 483,222,238 483,222,238 483,222,238
Effect of shares issued (weighted) 7,313,189 - -
Weighted-average number of ordinary shares at period / year end 490,535,427 483,222,238 483,222,238
Loss per share of common stock attributable to the Company: (0.0071) (0.0083) (0.020)
(Basic and diluted / US$)
17 Loans and borrowings
In 2023 the Company launched a US$20m bond programme in Kazakhstan ("the
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 have 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 AIX with ISIN number KZX000001474.
With respect to the second tranche of bonds (2023), investors have 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 have 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.
With respect to the fourth tranche of bonds (2024), investors have 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 Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000
$000
Non-current liabilities 17,134
Bonds payable 17,134 12,396
17,134 12,396 17,134
Current liabilities 432
Interest payable 303 233
303 233 432
Non-cash transactions from financing activities are shown in the
reconciliation of liabilities from financing transactions below:
Unaudited Unaudited
six-month
six-month
period ended
period ended Audited year ended 31 December 2024
30 June 2025
30 June 2024
$000
$000
$000
At 1 January 17,566 7,527 7,527
Cash flows:
-Interest paid (1,123) (523) (1,041)
-Proceeds from loans and borrowings - 5,003 10,003
Total 16,443 12,007 16,489
Non-cash flows
- Interest accruing in the period 993 622 1,340
- Bond discount / premium - - (263)
At 30 June / 31 December 17,436 12,629 17,566
18 Trade and other payables
Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000
$000
Trade payables 2,861 2,565 1,273
Debt to employees 269 242 188
Other taxes 381 52 310
Advances received 805 777 72
4,316 3,636 1,843
19 Deferred income
Unaudited Unaudited Audited 31 December 2024
30 June 2025 30 June 2024
$000
$000
$000
Government grants - - 102
- - 102
During 2023, the Group was awarded grant funding by the Kazakhstan Science Fund for the development of technology for the production of mixed vanadium oxides for use in vanadium redox flow batteries.
20 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.
21 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 2025
Processing Subsoil Corporate Total
$000
$000
$000
$000
Revenue 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)
Unaudited six-month period ended 30 June 2024
Processing Subsoil Corporate Total
$000
$000
$000
$000
Revenue 2,149 - - 2,149
Cost of sales (3,622) - - (3,622)
Other income 6 - 1 7
Administrative expenses (475) (42) (1,333) (1,850)
Distribution & other expenses (82) - - (82)
Finance costs 217 - (810) (593)
Loss before tax (1,807) (42) (2,142) (3,991)
Audited year ended 31 December 2024
Processing Subsoil Corporate Total
$000
$000
$000
$000
Revenue 4,738 - - 4,738
Cost of sales (7,550) - - (7,550)
Other income 49 - 1 50
Administrative expenses (1,132) (40) (1,850) (3,022)
Impairment charge (954) - - (954)
Distribution & other expenses (690) - (22) (712)
Finance costs 394 - (2,373) (1,979)
Loss before tax (5,145) (40) (4,244) (9,429)
Included in revenue arising from processing are revenues of US$2.2m (2024:
US$1.3m) which arose from sales to two of the Group' largest customers. No
other single customer contributes 10 per cent or more to the Group's revenue.
All of the Group's assets are attributable to the Group's processing
operations.
Sales to the Group's largest customers during the six months ended 30 June
2025 were as follows:
Customer
A
US$ 1.9m (81%) (2024:US$ 0.4m)
Customer B
US$ 0.3m (14%) (2024: US$1.0m)
22 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 Unaudited Audited year ended 31 December 2024 $000
six-month
six-month
period ended
period ended
30 June 2025
30 June 2024
$000
$000
Wages, salaries and related taxes 538 538 1,053
The amount of wages and salaries outstanding at 30 June 2025 is equal to US$
nil (2024: US$ nil).
23 Subsequent events
On 7 July 2025, the Company issued 16,666,667 ordinary shares of nil par value
in the capital of the Company, raising gross proceeds of £1,000,000, having
received share subscriptions from investors including certain directors of the
Company and VBR.
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