Geez I'm seeing some exaggerated figures in this forum. Here is some updated info from my notebook.
Production Target - 3 Million tonnes of iron ore concentrate - 12690 tonnes V205 = 8850 tonnes of FeV80 (ferrovanadium)
Price of Iron = $65/tonne (low grade iron?) Price of Ferrovanadium = $25/kg = $25000/tonne
Cash cost for Iron = $32.50/tonne
AXO will not disclose their operating cost for vanadium production but it will definitely be lower then PMA. To be conservative ive taken PMA cash cost
Cash cost for Ferrovanadium = $13.85/kg = $13850/tonne
EBITDA for Iron = 30000000 x $32.50 = $97.5 Million
EBITDA for Ferrovandium = 8850 x 11150 = $98.5 Million
Total EBITDA = $196.2 Million/year (30 year mine life based on existing JORC)
They have heaps of resources outside the JORC estimates allowing the company to increase its production levels without reducing its mine life.
Although it has a high CAPEX, i believe in a few years time, this company will have a 1 billion dollar market cap. A stock for long term investors who expect a dividend in future.
AXO Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
