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

• Market Cap: £38.78M
• Dividend Yield: N/A
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• 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: 510,311,000
• 10 Day Avg. Volume: 3,740,781
• 30 Day Avg. Volume: 2,735,951
• 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: 41 Neutral
• Price Target: 7.50p ▲(20.00% Upside)

Ferro-Alloy Resources Ltd. is facing significant financial challenges, with declining revenues, negative equity, and weak cash flows being the most critical factors. The technical indicators suggest bearish momentum, and the valuation metrics highlight ongoing losses and lack of profitability. These factors collectively result in a low overall stock score.

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	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: 6.25
• 50DMA: Negative
• 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 6.25 is below the 20-day moving average (MA) of 6.57, below the 50-day MA of 7.85, and below the 200-day MA of 7.85, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 58.25 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	49 Neutral	$56.11M	-5.00	-35.03%	―	32.49%	-11.11%
KOD	48 Neutral	£49.48M	-4.88	-21.41%	―	―	-133.33%
FAR	41 Neutral	£38.78M	―	-695.40%	―	9.40%	-11.81%
ZNWD	41 Neutral	£35.52M	―	-7.78%	―	―	-19.57%
ALL	41 Neutral	£63.28M	-17.50	-17.14%	―	―	54.72%

Ferro-Alloy Resources Ltd. Corporate Events

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.

Ferro-Alloy Resources Announces 2025 AGM Details

Ferro-Alloy Resources Limited has announced that its 2025 Annual General Meeting will be held on November 14, 2025, at the Duke of Richmond Hotel in Guernsey. The company has sent out notices to registered shareholders and made the information available on its website. This announcement is part of the company’s ongoing efforts to engage with its stakeholders and provide updates on its operations and strategic developments.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £8.50 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 Reports Interim Results and Advances Feasibility Study

Ferro-Alloy Resources Ltd. announced its interim results for the first half of 2025, highlighting a focus on completing the feasibility study for the Balasausqandiq vanadium project, expected by mid-October. The company has shifted its existing plant’s focus to research and development, commissioning pilot plants for carbon black substitute and vanadium oxides, and optimizing processes for high purity vanadium pentoxide production. Despite this R&D focus, the plant processed profitable vanadium-bearing concentrates, leading to increased molybdenum production and higher revenues. The company reported a loss of $3.5 million and appointed financial advisers for project financing, while issuing shares in lieu of cash for certain payments.

The most recent analyst rating on (GB:FAR) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Ferro-Alloy Resources Ltd. stock, see the GB:FAR Stock Forecast page.