- Vanadium mining and processing company Ferro-Alloy Resources swung to a loss on falling vanadium prices and higher costs.

For the year ended 31 December 2019, pre-tax profit fell to US$3.34m compared with a profit of US$2.96m.

Production of vanadium pentoxide increased 21.6% to 152 tonnes, but prices fell through the year from an 'exceptionally' high price of nearly $30 per pound (lb) in 2018 to a more normal range of US$5-to-7/lb in early 2020, the company said.

'Covid-19 resulted in various restrictions on travel which disrupted and curtailed operations in a number of ways, including slower progress on the feasibility study, delays to the link to an adjacent high voltage power line, commissioning issues with newly installed equipment and the shutdown of the hydrometallurgical process line because of lack of specialist staff on site,' the company said.

Following coronavirus-led disruptions, the company said had it had seen a jump in production after commencing operations in June.

'Production recommenced on the hydrometallurgical process on 1 June 2020 which, in spite of some continuing Covid-19 restrictions, has resulted in a significant increase in production to a monthly rate nearly three times that of the first quarter of 2019,' the company said.

At 9:38am: [LON:FAR] share price was 0p at 8.25p

Story provided by