TNG is not gold but the theme is the same – a stock that has remained overlooked in 2020 but one that goes in to 2021 with the potential to break its share price shackles in a big way.
The stocked opened the year at 8.8c and is currently trading at 8.6c. That weakness can be put down to COVID-19 uncertainties more than anything else.
More to the point is that the company is closing in on making a final investment decision within the next 12 months on its Mount Peake vanadium-titanium-iron project in the Northern Territory.
It is a mouthful all right and there are lots of moving parts to the story. But all that really needs to be known is that TNG is pretty much alone on the ASX in having a project with an NPV of $3b and an IRR of 40% against a market cap of all of $105m.
It’s a big project across a suite of strategic materials which can all be produced as co-products rather than by-products thanks to propriety processing technology to be employed at plant near Darwin.
Financing for the $850m-plus project is the biggest hurdle, but Germany Inc and KPMG are on the job, with the process to heat up on the expected completion soon of a front-end engineering and design for the Darwin plant. NAIF is also in the loop for potential financing.
TNG has made no secret of the fact that the scale and long-life of the project, plus the strategic nature of its commodities suite in a greening world, makes it a likely candidate for a strategic partner(s), or a takeover for that matter.
One of the major global commodity forecasters reckons vanadium prices will climb by around 25 per cent over the coming decade driven by underlying demand from the steel industry and growing use in the renewable energy sector in grid-scale vanadium redox batteries.
https://www.livewiremarkets.com/wires/gold-stocks-which-missed-2020-party-may-be-next-year-s-winners
