Q3 2024 Production Results
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Q3 Production Results
| 2023 | 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2023 | Q2 2023 | Q3 2023 | TOTAL Q1, Q2 & Q3 | Q1 2024 | Q2 2024 | Q3 2024 | % change vs Q2 | TOTAL Q1, Q2 & Q3 | % change | |
| Tonnes of concentrate processed | 194.1 | 1,016.6 | 314.0 | 1,524.7 | 668.6 | 777.5 | 1,227.8 | +57.9% | 2,673.9 | +75.4% |
| Tonnes of vanadium pentoxide produced* | 31.3 | 141.4 | 47.3 | 220.0 | 81.6 | 87.6 | 52.3 | -40.3% | 221.5 | +0.7% |
| Tonnes of molybdenum produced** | 6.5 | 14.1 | 6.4 | 27.0 | 7.1 | 6.9 | 7.1 | +2.9% | 21.1 | -21.9% |
| Tonnes of nickel produced*** | 9.7 | 50.8 | 15.7 | 76.2 | 33.4 | 38.8 | 63.9 | +64.7% | 136.1 | +78.6% |
* partly contained in ammonium metavanadate
** in ferro-molybdenum
*** in nickel concentrate
Commentary
As first announced in July, the Company undertook test processing of stockpiled nickel-rich residues held at the plant site during Q3. The nickel residues contained lower levels of vanadium than historic bought-in catalysts, resulting in 40.3% less vanadium production in Q3 than Q2, but this was offset by having minimal raw material costs. Overall, molybdenum output remained consistent between the quarters. The metallurgical recoveries of vanadium and molybdenum from the nickel residues in the testing period did not sufficiently replicate the results achieved in the laboratory and the Company has decided to revert to the treatment of standard concentrate raw materials, although this decision might change in future when different metal prices prevail.
Production of vanadium pentoxide for the year to date is similar to that of 2023 while molybdenum output has decreased by 21.9%, comparatively, mainly as result of metal content variations within the concentrates treated.
During Q3 2024 the average prices of vanadium pentoxide and molybdenum were US$5.3/lb (Q3 2023: US$7.4/lb) and US$51.2/kg (Q3 2023: 54.1/kg), respectively.
Production Outlook
Following the outcome of the commercial scale testing of the nickel-rich residues the Company has reverted to processing bought-in catalysts on a non-tolling basis.
The Company has sufficient catalysts for processing during Q4 2024 either already at the plant site or on order.
Research and development are ongoing to determine whether the Company can process the upgraded nickel concentrates to produce ferro-nickel.
Commenting on the production results, Nick Bridgen, CEO of Ferro-Alloy Resources said:
"Current trading conditions are difficult, but the operation continues to make a contribution to overheads whilst we complete the main project feasibility study."
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