Ferro-Alloy Resources Ltd. (FAR) AI Stock Analysis

• Market Cap: £40.31M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -19.54%
• EPS Growth: -70.79%
• Country: UK
• Employees: 200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 510,311,000
• 10 Day Avg. Volume: 972,221
• 30 Day Avg. Volume: 1,153,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £7.50
• Price Target Upside: -5.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: 7.50p ▼(-5.06% Downside)

Ferro-Alloy Resources Ltd. faces significant financial challenges, with negative equity and persistent losses being the most critical factors. Technical indicators provide mixed signals, with some medium-term strength but short-term weakness. The negative P/E ratio and lack of dividend yield further underscore the stock's unattractiveness from a valuation perspective.

Ferro-Alloy Resources Ltd. Business Overview & Revenue Model

Company Description

Ferro-Alloy Resources Ltd. (FAR) is a UK-based mining and processing company focused on the production of ferroalloys, primarily vanadium, which is essential for the steel and aerospace industries. The company operates in the mining sector, with a specific emphasis on the extraction of vanadium-rich minerals from its projects in Kazakhstan. FAR is committed to sustainable and efficient mining practices while also exploring opportunities to expand its portfolio in related minerals.

How the Company Makes Money

Ferro-Alloy Resources Ltd. generates revenue through the sale of vanadium products, which are used primarily in steelmaking and other industrial applications. The company's revenue model is based on the extraction, processing, and distribution of vanadium and other ferroalloys. Key revenue streams include direct sales to steel manufacturers and other industrial clients, as well as potential long-term contracts that provide stability in pricing and volume. Additionally, FAR's strategic partnerships with industry players and its focus on optimizing production efficiency contribute to its earnings. Market demand for vanadium, driven by its increasing use in high-strength steel and battery technologies, further supports the company's revenue generation.

Ferro-Alloy Resources Ltd. Financial Statement Overview

Summary

Ferro-Alloy Resources Ltd. is facing significant financial challenges, with declining revenues, persistent net losses, negative equity, and weak cash flows. The company's high leverage and negative margins across multiple metrics raise concerns about its ability to sustain operations without strategic restructuring or capital infusion.

Income Statement

Ferro-Alloy Resources Ltd. has exhibited declining revenues with a significant decrease in total revenue from 2023 to 2024, coupled with persistent negative gross profit margins indicating cost inefficiencies. The net profit margin remains deeply negative due to substantial net losses each year, highlighting ongoing financial difficulties. There is a notable deterioration in EBIT and EBITDA margins, reflecting weak operational performance.

Balance Sheet

The company's balance sheet reveals a precarious financial position with negative stockholders' equity in 2024, indicating liabilities exceeding assets. The debt-to-equity ratio is concerning, and there is a lack of equity buffer. The equity ratio has turned negative, which further underscores the high leverage and risk of insolvency.

Cash Flow

Cash flow statements show negative operating cash flow and free cash flow across multiple years, suggesting difficulties in generating cash from operations. Despite some financing inflows, the company struggles to achieve positive free cash flow, indicating potential liquidity issues. The free cash flow to net income ratio remains negative, highlighting inefficiencies in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.55M	4.74M	5.72M	6.27M	4.73M	2.37M
Gross Profit	-2.59M	-2.81M	-1.05M	-1.25M	-162.00K	-1.41M
EBITDA	-6.08M	-6.83M	-4.51M	-3.70M	-2.29M	-3.48M
Net Income	-7.71M	-9.43M	-5.25M	-4.63M	-3.00M	-3.94M
Balance Sheet
Total Assets	21.76M	19.26M	20.02M	18.95M	12.94M	6.76M
Cash, Cash Equivalents and Short-Term Investments	2.53M	3.78M	1.95M	4.33M	2.81M	707.00K
Total Debt	12.40M	17.13M	7.39M	1.11M	1.39M	936.00K
Total Liabilities	16.30M	19.54M	9.80M	3.54M	2.28M	2.78M
Stockholders Equity	5.46M	-271.00K	10.22M	15.41M	10.66M	3.98M
Cash Flow
Free Cash Flow	-9.47M	-6.59M	-8.99M	-7.77M	-7.52M	-2.39M
Operating Cash Flow	-6.68M	-4.27M	-5.08M	-3.43M	-4.98M	-1.33M
Investing Cash Flow	-2.79M	-2.27M	-3.91M	-4.30M	-2.54M	-1.06M
Financing Cash Flow	12.14M	8.40M	6.51M	9.19M	10.06M	2.47M

Ferro-Alloy Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAR, the sentiment is Negative. The current price of 7.9 is below the 20-day moving average (MA) of 8.57, above the 50-day MA of 7.81, and below the 200-day MA of 8.15, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FAR.

Ferro-Alloy Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATM	54 Neutral	57.04M	-5.08	-41.21%	―	32.49%	-11.11%
KOD	48 Neutral	62.87M	2.21	0.00%	―	0.00%	0.00%
ALL	47 Neutral	67.16M	-19.46	0.00%	―	0.00%	54.72%
FAR	42 Neutral	£40.31M	―	-188.99%	―	-19.54%	-70.79%
ZNWD	41 Neutral	24.95M	-9.39	0.00%	―	0.00%	9.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ferro-Alloy Resources Ltd. Corporate Events

Ferro-Alloy Resources Advances CBS Product and Feasibility Study

Ferro-Alloy Resources Limited has announced progress in developing a new carbon black substitute (CBS) product and updates on the feasibility study for Phase 1 of the Balasausqandiq Project. The new CBS product, derived from high-carbon waste rock, has undergone successful laboratory testing, opening potential revenue streams before the main processing plant’s construction. A 20-tonne sample is being sent to a Chinese customer for industrial testing, potentially leading to offtake agreements. The feasibility study, nearly complete, includes a 1.65 Mtpa process plant design and plans to defer its publication to optimize the CBS elements, which could significantly enhance the project’s financial prospects.

Ferro-Alloy Resources Appoints Financial Advisers for Balasausqandiq Project

Ferro-Alloy Resources Limited has appointed Northcott Capital Limited and Oval Advisory Limited as lead financial advisers for the financing of Phase 1 of its Balasausqandiq Project. This strategic move marks a significant milestone towards the construction phase, leveraging the advisers’ expertise in the natural resources sector and familiarity with Kazakhstan to advance financing arrangements. The project, which aims to treat 1.65 million tonnes per year, is expected to strengthen Ferro-Alloy’s position in the vanadium market and potentially offer cost advantages due to the nature of the ore.

Ferro-Alloy Resources Partners with CC6 for Balasausqandiq Project Phase 1

Ferro-Alloy Resources Limited has entered into a non-binding framework agreement with China National Chemical Engineering Sixth Construction Co., Ltd (CC6) to design and construct Phase 1 of the Balasausqandiq Project. This agreement marks a potential partnership that could expedite the project’s schedule and ensure cost-effective engineering and construction. With CC6’s extensive experience in vanadium projects and operations in Kazakhstan, this collaboration could significantly enhance Ferro-Alloy’s industry positioning and operational capabilities.