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:
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 ("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.
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 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 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 for the six months ended 30 June 2025
Note
Unaudited six-month period ended 30 June 2025$000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024$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 fortheperiod
(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)
Lossper 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 for the six months ended 30 June 2025
Note
Unaudited 30June2025$000
Unaudited 30June2024$000
Audited 31 December 2024$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 for the six months ended 30 June 2025
Share capital $000
Additional paid in capital $000
Share-based payment reserve $000
Foreign currency translation reserve $000
Accumulated losses $000
Total $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 for the six months ended 30 June 2025
Unaudited six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $000
Currency conversion gain
9
3
5
Other
33
4
45
42
7
50
5 Administrative expenses
Unaudited six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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$000
Plant and equipment$000
Vehicles$000
Computers$000
Other$000
Construction in progress$000
Total$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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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$000
Patents$000
Computersoftware$000
Total$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 at30 June 2025
73
32
3
108
Amortisation
Balance at 1 January 2024
84
14
3
101
Amortisation for theyear
-
1
-
1
Foreign currency translation difference
(3)
(1)
-
(4)
Balance at30 June 2024
81
14
3
98
Balance at31 December 2024
73
13
3
89
Balance at 1 January 2025
73
13
3
89
Amortisation for theyear
-
1
-
1
Foreign currency translation difference
-
1
-
1
Balance at30 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
At30 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
Unaudited30 June 2025 $000
Unaudited 30 June 2024 $000
Audited 31 December 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
Unaudited30 June 2025 $000
Unaudited30 June 2024
Audited 31 December 2024
$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
Unaudited30 June 2025 $000
Unaudited30 June 2024 $000
Audited 31 December 2024 $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
Unaudited30 June 2025 $000
Unaudited30 June 2024 $000
Audited 31 December 2024 $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
Unaudited30 June 2025
Unaudited30 June 2024
Audited 31 December 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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $000
Loss for the period, attributable to owners of the Company
(3,497)
(3,991)
(9,429)
Loss attributable to ordinary shareholders
(3,497)
(3,991)
(9,429)
(ii) Weighted-average number of ordinary shares (basic and diluted)
Shares
Unaudited six-month period ended 30 June 2025
Unaudited six-month period ended 30 June 2024
Audited year ended 31 December 2024
Issued ordinary shares at 1 January (after subdivision)
483,222,238
483,222,238
483,222,238
Effect of shares issued (weighted)
7,313,189
-
-
Weighted-average number of ordinary shares at period / year end
490,535,427
483,222,238
483,222,238
Loss per share of common stock attributable to the Company: (Basic and diluted / US$)
(0.0071)
(0.0083)
(0.020)
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.
Unaudited30 June 2025 $000
Unaudited30 June 2024 $000
Audited 31 December 2024 $000
Non-current liabilities Bonds payable
17,134
12,396
17,134
17,134
12,396
17,134
Current liabilities Interest payable
303
233
432
303
233
432
Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financing transactions below:
Unaudited six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $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
Unaudited30 June 2025 $000
Unaudited30 June 2024 $000
Audited 31 December 2024 $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
Unaudited30 June 2025 $000
Unaudited30 June 2024 $000
Audited 31 December 2024 $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$000
Subsoil $000
Corporate $000
Total $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$000
Subsoil $000
Corporate $000
Total $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$000
Subsoil $000
Corporate $000
Total $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 six-month period ended 30 June 2025 $000
Unaudited six-month period ended 30 June 2024 $000
Audited year ended 31 December 2024 $000
Wages, salaries and related taxes
538
538
1,053
The amount of wages and salaries outstanding at 30 June 2025 is equal to US$ 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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END
IR SEIFWUEISELU
