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

• Market Cap: £36.34M
• Dividend Yield: N/A
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 9.40%
• EPS Growth: -11.81%
• Country: UK
• Employees: 200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 559,129,640
• 10 Day Avg. Volume: 2,621,181
• 30 Day Avg. Volume: 2,879,251
• PEG Ratio: -0.10
• Price to Book (P/B): -227.55
• Price to Sales (P/S): 13.02
• P/FCF Ratio: -9.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 6.50p ▼(-2.69% Downside)

Ferro-Alloy Resources Ltd. faces substantial financial difficulties, which heavily impact its overall score. While recent corporate events show promise in project development and cost reductions, the company's weak financial performance and valuation metrics weigh down the score. Technical indicators suggest a bearish trend, further contributing to the cautious outlook.

Positive Factors

Market Demand

The growing demand for vanadium in steel and battery industries supports long-term revenue potential, aligning with structural industry trends.

Strategic Partnerships

Strategic partnerships enhance production capabilities and market reach, potentially leading to stable revenue streams and competitive advantages.

Revenue Growth

Positive revenue growth indicates expanding operations and market penetration, which can improve financial stability over time.

Negative Factors

Negative Equity

Negative equity suggests financial instability, posing risks to long-term solvency and limiting the company's ability to invest in growth.

Cash Flow Challenges

Persistent negative cash flow indicates operational inefficiencies and potential liquidity issues, threatening the company's ability to sustain operations.

Declining Profitability

Ongoing losses and negative margins highlight cost inefficiencies, undermining profitability and the ability to generate shareholder value.

Ferro-Alloy Resources Ltd. Business Overview & Revenue Model

Company Description

Ferro-Alloy Resources Limited engages in mining, processing, and selling vanadium and related by-products in the Republic of Kazakhstan. The company explores for uranium, molybdenum, aluminum, rare earth metals, potassium, and carbon deposits. It primarily holds an interest in the Balasausqandiq deposit located in southern Kazakhstan. The company was incorporated in 2000 and is based in Saint Peter Port, the United Kingdom.

How the Company Makes Money

Ferro-Alloy Resources Ltd. generates revenue primarily through the production and sale of vanadium and other ferroalloys. The company’s revenue model is based on selling its products to various industries, including steel manufacturing and battery production, where vanadium is increasingly used for energy storage solutions. Key revenue streams include the direct sale of ferroalloys to industrial clients and long-term supply contracts with major manufacturers. Furthermore, FAR may benefit from strategic partnerships with other companies in the mining and energy sectors, which can enhance its market reach and operational efficiency. The company’s focus on sustainable practices and technological advancements also positions it favorably in a competitive marketplace, contributing to its financial performance.

Ferro-Alloy Resources Ltd. Financial Statement Overview

Summary

Ferro-Alloy Resources Ltd. is experiencing severe financial distress, with declining revenues, persistent net losses, negative equity, and weak cash flows. The company's high leverage and negative margins across multiple metrics raise significant 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.74M	5.72M	6.27M	4.73M	2.37M
Gross Profit	-2.81M	-1.05M	-1.25M	-162.00K	-1.41M
EBITDA	-6.83M	-4.51M	-3.70M	-2.29M	-3.48M
Net Income	-9.43M	-5.25M	-4.29M	-2.83M	-3.94M
Balance Sheet
Total Assets	19.26M	20.02M	18.95M	12.94M	6.76M
Cash, Cash Equivalents and Short-Term Investments	3.78M	1.95M	4.33M	2.81M	707.00K
Total Debt	17.13M	7.39M	1.11M	1.39M	936.00K
Total Liabilities	19.54M	9.80M	3.54M	2.28M	2.78M
Stockholders Equity	-271.00K	10.22M	15.41M	10.66M	3.98M
Cash Flow
Free Cash Flow	-6.59M	-8.99M	-7.77M	-7.52M	-2.39M
Operating Cash Flow	-4.27M	-5.08M	-3.43M	-4.98M	-1.33M
Investing Cash Flow	-2.27M	-3.91M	-4.30M	-2.54M	-1.06M
Financing Cash Flow	8.40M	6.51M	9.19M	10.06M	2.47M

Ferro-Alloy Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAR, the sentiment is Positive. The current price of 6.68 is above the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.77, and below the 200-day MA of 7.50, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ATM	54 Neutral	$69.76M	-6.67	-33.80%	―	26.18%	―
ZNWD	52 Neutral	£33.90M	-12.45	-7.78%	―	―	-19.57%
KOD	50 Neutral	£70.98M	-7.00	-21.41%	―	―	-133.33%
1SN	49 Neutral	£61.77M	-32.32	-10.01%	―	―	―
ALL	48 Neutral	£77.68M	-22.60	-17.14%	―	―	54.72%
FAR	46 Neutral	£36.34M	-4.89	-695.40%	―	9.40%	-11.81%

Ferro-Alloy Resources Ltd. Corporate Events

Ferro-Alloy Resources Secures £1.5 Million Through New Share Issuance

Ferro-Alloy Resources Limited has announced the issuance of 28,179,747 new ordinary shares, raising £1,549,886. This equity raise, supported by key shareholders including Vision Blue Resources Limited and company directors, aims to strengthen the company’s financial position as it advances the Balasausqandiq project. The shares were issued at a 23.1% discount to the closing share price, and the transaction has been deemed fair and reasonable by the Independent Director. The new shares will be admitted to trading on the London Stock Exchange, increasing the total voting rights to 559,129,629 shares.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £7.00 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.

Ferro-Alloy Resources Passes All Resolutions at 2025 AGM

Ferro-Alloy Resources Limited announced that all resolutions were passed at its 2025 Annual General Meeting, including the re-election of several directors and the re-appointment of auditors. This outcome supports the company’s ongoing operations and strategic plans, reinforcing its position in the vanadium market and ensuring continued governance and financial oversight.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £7.50 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.

Ferro-Alloy Resources Raises £1.24 Million Through Equity Issue

Ferro-Alloy Resources Limited has issued over 20 million new shares, raising £1.24 million, with participation from strategic shareholder Vision Blue Resources and company directors. This equity raise, issued at a discount, aims to fund ongoing engagement with strategic investors for the development of their large vanadium project in Kazakhstan, potentially impacting the company’s financial stability and market position.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £5.00 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.

Ferro-Alloy Resources Announces Cost Reductions and Financing Progress for Vanadium Project

Ferro-Alloy Resources Limited has announced significant progress in its Balasausqandiq vanadium project, with a 40% reduction in capital costs following a feasibility study. The company has agreed on terms for front-end engineering and design with China National Chemical Engineering Sixth Construction Co., Ltd, which provided a construction cost estimate of US$261 million. This reduction enhances the project’s internal rate of return to 31% and net present value to US$931.6 million. Additionally, a conditional loan offer from the Bank of Communication and potential access to Chinese insurance could further lower financing costs, positively impacting stakeholders and enhancing the project’s financial returns.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £5.00 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.

Ferro-Alloy Resources Unveils Promising Feasibility Study for Vanadium Project

Ferro-Alloy Resources Limited announced positive results from its feasibility study for Phase 1 of the Balasausqandiq vanadium project, highlighting its potential to become a leading low-cost vanadium producer. The study indicates a net present value of $748 million and an internal rate of return of 22%, with significant opportunities for further value enhancement. The company is in discussions with financial institutions for project funding and aims to optimize production processes to improve project economics further. The announcement underscores Ferro-Alloy’s strategic positioning in the growing vanadium market, which is expected to face a supply deficit by 2029.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £15.00 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.