I don't hold either company, but held AVL in the past. I sold my stake in AVL a while ago because there were things been said at the time by VA that didn't make sense (noting he has departed AVL) - it was just an endless procession of what ifs and trust me at the time from him and a 'look over there style' (noting it is about the vanadium price as well).
It makes sense to me that TMT and AVL merge. However, I think the terms need to be a little more generous for TMT btw - why, apart from SOI been lower here, I also feel that TMT has the better aspect of the deposit, and that TMT part of the deposit is likely to be mined first. Which means project viability is actually driven by that aspect of the deposit (given how discount rates apply in project assessments)
My problem at the time with AVL is it constantly reported results around the fresh and transitional layers (METs), but we know an aspect of its deposit is oxidised where recovery rates are significantly lower 9and obviously there would be access and cost issues associated with just accessing those layers). I suspect TMT has a greater proportion of Fresh/Transitional layers than AVL and it might explain (apart from the vanadium price) why it took AVL countless delays etc to get its process flow sheet right -
Post #:45551013 . Merging the two allows better recoveries and blending IMO.
This is only a hunch by the way, but I would ask AVL how the TMT resource benefits the overall viability of the project.
Obviously merging the two projects leads to economies of scale around capex costs and opex costs, which should improve viability (i.e. that is ensuring project viability is there at lower cut off vanadium prices).
A lot of my posts are old but they might give an indication on certain apsects.
On METs (AVL) - refer
Post #:45579948ON TMT and AVL - recovery rates and feasibility studies
Post #:61133211Prices the key -
Post #:44719765All IMO and GLTAH. Again merger makes sense - just hope for your sakes you get a good deal and that the low SOI here don't work against holders.
All IMO
