The whole BFS is calculated on a worse case scenario. Ultra conservative but actually inaccurate.
Moat WA mines developed for far less, and will be done in stages.
BFS Capex clearly worse case and Vanadium price is a proven worse case at $10.50lb as Vanadium price rising and been when above that in 12 -$12.40lb range and headed higher given supply/demand dynamics.
Expected case is more like $15lb over 25 year period as Vanadium is seen as superior to Lithium and safer than Uranium so EV Global Car makers and Global Utilities/Electricity Grids will champing at the bit not just in Indonesia but Australia, US, Europe and UK also so price asymmetry is now and that will correct and could in the long term be come more valuable than its by product commodity Uranium@$57 (which will pull the Uranium price to $15.
The Capex will be done in stages so first stage maybe $100m CR done@16-18c certainly not 8c. So I see blue sky vakue to 18c or so.... as Valuation increasingly is seen as North of 30c+ and that's without further drill programs or Vanadium breaking out (Expected).
AVL Price at posting:
7.9¢ Sentiment: Buy Disclosure: Held
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