A Peek at the Future

Now we begin to see why we bought SYR shares. The Chalieco Vanadium Scoping Study is exciting, and very positive, but it pales into insignificance when compared to what we can look for, down the track.

The Study is modestly aimed at a production rate of 5K tonnes of V2O5 per year, which is about 3.7% of the total current market. But it is very obvious that production rate is only the beginning. Balama's capex and production costs will be the lowest of any of the world's major producers, and the available resource is vast. SYR is already receiving inquiries for more product, and will be well-placed to expand production substantially.

And the market is very likely to be there - especially for high-grade V2O5, suitable for redox battery applications. And it is in exactly that area that Balama is set to shine. Most of the world's vanadium is in titaniferous magnetite deposits, from which it is difficult to produce high-grade V2O5. Balama is different. Its vanadium can be easily and cheaply upgraded to the 99.9% required by the Redox battery industry, which expects to gain about one-third of the forecast US$114B large-scale battery market.

I haven't yet worked out how much of that could flow through to SYR, but the numbers certainly dwarf what we see in today's announcement.

It's only a glimpse of the future, but the view is fantastic!

Cheers, Prime1