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

• Market Cap: £38.86M
• Dividend Yield: N/A
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• 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: 43 Neutral
• Price Target: 6.50p ▼(-2.69% Downside)

The score is held down primarily by very weak financial performance (losses, negative cash flow, and negative equity). Technicals provide some support via strong momentum above key moving averages, but overbought indicators increase near-term risk. Valuation offers limited support because the company is currently loss-making and no dividend yield is available.

Positive Factors

Structural demand for vanadium

Vanadium is a critical input for steel strengthening and redox flow batteries; sustained adoption in energy storage and advanced materials creates multi-year structural demand. FAR's focus on vanadium positions it to benefit from secular growth in these end markets, supporting long-term sales potential.

Consistent top-line growth

Reported ~9.4% revenue growth indicates the company has been expanding sales, suggesting product demand or contract gains. If sustained, this growth supports scale economics, customer relationships, and the ability to invest in processing capacity and long-term contracts, improving durability of earnings potential.

Focused specialist operating model

A specialized vanadium/ferroalloy focus with strategic partnerships implies concentrated technical expertise and potential integrated supply relationships. This specialization can enable operational efficiencies, reliable long-term supply to industrial clients, and easier alignment with battery/steel manufacturers over years.

Negative Factors

Negative shareholders' equity

Negative equity means liabilities exceed assets, leaving little to absorb shocks and restricting financing options. Over months this raises solvency risk, increases cost of capital, and limits strategic flexibility for investments or capital expenditures, threatening long-term operational continuity.

Chronic negative operating cash flow

Persistent negative operating and free cash flow forces reliance on external financing and curtails reinvestment. Over a 2-6 month horizon this reduces capacity to maintain plants, invest in efficiency, or fulfill contracts without dilutive funding, increasing liquidity and execution risk.

Declining revenue and deteriorating margins

Falling sales combined with negative gross and operating margins reflect structural cost inefficiencies or pricing pressure. Continued margin deterioration undermines profitability, erodes capital reserves, and limits the company's ability to compete, invest, or absorb commodity price swings over the medium term.

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

Very weak fundamentals: declining revenue, persistent net losses with deteriorating EBIT/EBITDA margins, negative operating and free cash flow, and a balance sheet with negative equity (liabilities exceed assets), increasing solvency and funding risk.

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	5.12M	4.74M	5.72M	6.27M	4.73M	2.37M
Gross Profit	-2.24M	-2.81M	-1.05M	-1.25M	-162.00K	-1.41M
EBITDA	-4.53M	-6.83M	-4.51M	-3.70M	-2.29M	-3.48M
Net Income	-8.94M	-9.43M	-5.25M	-4.29M	-2.83M	-3.94M
Balance Sheet
Total Assets	18.58M	19.26M	20.02M	18.95M	12.94M	6.76M
Cash, Cash Equivalents and Short-Term Investments	391.00K	3.78M	1.95M	4.33M	2.81M	707.00K
Total Debt	17.13M	17.13M	7.39M	1.11M	1.39M	936.00K
Total Liabilities	21.78M	19.54M	9.80M	3.54M	2.28M	2.78M
Stockholders Equity	-3.20M	-271.00K	10.22M	15.41M	10.66M	3.98M
Cash Flow
Free Cash Flow	-5.51M	-6.59M	-8.99M	-7.77M	-7.52M	-2.39M
Operating Cash Flow	-2.13M	-4.27M	-5.08M	-3.43M	-4.98M	-1.33M
Investing Cash Flow	-3.34M	-2.27M	-3.91M	-4.30M	-2.54M	-1.06M
Financing Cash Flow	2.80M	8.40M	6.51M	9.19M	10.06M	2.47M

Ferro-Alloy Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.68
• 50DMA: Negative
• 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 6.68 is below the 20-day moving average (MA) of 7.21, below the 50-day MA of 6.93, and below the 200-day MA of 7.56, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 12.33 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KMR	56 Neutral	£217.10M	-5.77	-4.64%	7.30%	6.65%	-159.09%
JLP	53 Neutral	£146.30M	―	―	―	―	―
ARS	51 Neutral	£59.39M	-11.67	-908.21%	―	―	―
1SN	46 Neutral	£84.53M	-36.59	-10.01%	―	―	―
IRON	45 Neutral	£6.89M	―	―	―	―	―
FAR	43 Neutral	£38.86M	-4.79	-695.40%	―	9.40%	-11.81%

Ferro-Alloy Resources Ltd. Corporate Events

Ferro-Alloy signs major carbon black substitute supply MOU with China’s Master Tyre

Ferro-Alloy Resources has signed a non-binding, non-exclusive memorandum of understanding with Chinese tyre manufacturer and carbon black distributor Qingdao Master Tyre for the potential supply of up to 360,000 tonnes per year of a new carbon black substitute (New CBS) derived from high-carbon, low-vanadium waste rock at its Balasausqandiq project in Kazakhstan. The New CBS, which was not factored into the project’s recent feasibility study and therefore represents an incremental revenue opportunity, is being prioritised in Master Tyre’s 2036 strategy and tested as a replacement for both conventional carbon black and silicon dioxide in tyre rubber production; if commercial terms are agreed, the deal could significantly enhance the project’s already strong economics while reinforcing Ferro-Alloy’s positioning in lower-emission, cost-competitive materials for the tyre and rubber industry in China and beyond.

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 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.