Hi all and we’ve had quite the sell down since the merger was formalised back on February 2.
In fact today at .017c a share the market cap is $131m which is
less than the market valued AVL
on its own at when the merger was put to the market last September.
Those who assessed valued the combined entity at $217m!
Truly
https://www.mining-technology.com/news/vanadium-to-acquire-tmt/Egad?
Why would they do that?
There’s a linkedin in report on merger completion dated Feb 2 (merger day?) from thd head honcho at Mineral Science and Geology:
spoiler: In here
Investment Report: Australian Vanadium Limited (AVL) Completes Merger with Technology Metals Australia (TMT)Xuan-Ce Wang
Xuan-Ce WangManaging Director/Chief Scientist/Professor at Mineral System and GeologyPublished Feb 2, 2024
+ FollowOverview:
Australian Vanadium Limited (AVL) has achieved a significant milestone in its vanadium development strategy by successfully completing a merger with Technology Metals Australia (TMT). This strategic move, valued at $217 million, marks a transformative development in the vanadium sector, positioning AVL as a potential global leader in advanced vanadium production.
Merger Highlights:
l Combined Ore Bodies: The merger integrates the adjacent ore bodies of AVL and TMT into a unified project, creating one of the world's largest and most advanced vanadium producers.
l Economies of Scale: The merged project is poised to benefit from economies of scale, operational synergies, and resource optimization, enhancing overall efficiency.
l Potential Production Stage: AVL is gearing up to advance to the production stage, with a focus on leveraging the synergies generated by the merger.
l Market Expansion: While pursuing production, AVL will explore downstream opportunities in the vanadium flow battery (VFB) market. Its subsidiary, VSUN Energy, and a newly constructed vanadium electrolyte manufacturing facility in Western Australia will play a pivotal role in this exploration.
Feasibility Study and Future Vision:
l Wood Group Engagement: AVL has enlisted Wood Group to conduct an optimized feasibility study. The study, expected to deliver its first phase by mid-2024, aims to develop mining and processing schedules, minimize costs, and maximize returns.
l Pit-to-Battery Strategy: AVL's long-term vision involves implementing a pit-to-battery strategy for vanadium. This entails using its vanadium oxide to manufacture vanadium electrolyte, emphasizing onshore downstream processing, value-addition, and a high level of local content.
Market Outlook:
l VFB Market Growth: AVL anticipates that the VFB market will play a crucial role in driving domestic demand for vanadium in the future.
l Local Content Commitment: The company is committed to providing a high level of local content, setting its vanadium strategy apart in the battery technology landscape.
Board Enhancement:
l New Non-Executive Director: AVL welcomed Jo Gaines as a new non-executive director to its board. With extensive experience in policy development, Gaines brings valuable insights, particularly from her role as the deputy chief of staff to the Premier of Western Australia.
l Strategic Expertise: Jo Gaines' experience in working with both state and federal governments positions her as a valuable asset as AVL progresses with approvals and financing for the integrated vanadium project.
Conclusion:
The completion of the merger with TMT marks a pivotal moment for AVL, positioning the company as a major player in the global vanadium landscape. With a comprehensive feasibility study underway and a commitment to downstream processing, AVL is poised for significant growth and market influence. The strategic addition of Jo Gaines to the board further strengthens AVL's capabilities as it advances in the development and financing of its integrated vanadium project.
Pivotal moment?
Well the price did - pivot.
Investors peeled off like investors leaving a ‘sinking ship’ which has led in less than five months - so far - to yesterday’s 12/01/24 close of .016c a share - and a market cap that less than $128m .
Anyhow i thought I’d start a thread where people can be focused on daily prices /volume and other talk on AVL as a stock stock code rather than news of vanadium in general or fundamental news.
To start
Here’s a stocknessmonster image of ChiX trades a while ago to 1.10pm
https://stocknessmonster.com/trades/avl.chia/View attachment 5959927Current value traded today equates to around $147,000 so those ~$66,000 ‘big spenders’ comprise - so far - quite a chunk of today’s investment.
cheers
(20min delay)