Q1 2024 Production Results
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| 2023 | 2024 | ||||||
|---|---|---|---|---|---|---|---|
| Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q1 % change | |
| Tonnes of concentrate processed | 194.1 | 1,016.6 | 314.0 | 703.3 | 2,228.0 | 668.6 | +244.5% |
| Tonnes of vanadium pentoxide produced* | 31.3 | 141.4 | 47.3 | 90.5 | 310.5 | 81.6 | +160.7% |
| Tonnes of molybdenum produced** | 6.5 | 14.1 | 6.4 | 7.4 | 34.4 | 7.1 | +9.2% |
| Tonnes of nickel produced*** | 9.7 | 50.8 | 15.7 | 35.2 | 111.4 | 33.4 | +244% |
* partly contained in ammonium metavanadate
** in ferro-molybdenum
*** in nickel concentrate
Commentary
Production in Q1 2024 was 160% higher than Q1 2023, but slightly lower than planned, impacted mainly by severe flooding in Kazakhstan during March which caused transport delays in country and infrastructure issues at the plant site. One of the Group's four roasting ovens also required re-lining during the quarter. The pre-roaster, which reduces the raw material residence time in the main ovens, was not in operation during the quarter as a result of high winter winds and general extreme weather.
During the quarter, several improvements were made to the production facilities, including the installation of new cyclones on two of the roasting ovens in order to increase recovery and reduce emissions. A reorganisation of the drying oven and dissociation oven was also undertaken to increase overall recoveries. Two new drying ovens are currently being installed and will be commissioned during May.
Production Outlook
The impact of the floods has also affected production at the start of April but the improvements in the plant described above, together with the expected operation of the pre-roaster, should increase production to compensate.
The Company has sufficient feedstock in its warehouse for processing over the next two months and further concentrate deliveries are expected to arrive on site to enable uninterrupted production.
The Company has also started to source and treat raw materials for processing on a tolling basis which eliminates the risk of price movements between the time of purchase of concentrates and the sale of the product.
Commenting on the production results, Nick Bridgen, CEO of Ferro-Alloy Resources said:
"The first quarter of the year always produces challenging winter weather, but we are pleased to see a solid increase on the same quarter last year despite more severe weather. We are hopeful that we will be able to build on the success of this quarter throughout the rest of the year."
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