Hopefully! As much as my posts are expressing mostly concerns and not being happy with the current situation, I have bought a bit more while it's been at 25c as I still see upside however this plays out.
Vanadium price playing ball would be a big help in all respects. But if we speak typically, vanadium mining hasn't been something that is viable if your resource isn't up to scratch, as it increases opex too much and your margins just aren't big enough to weather the vanadium market over long stretches.
I can see a clear picture of success with a higher sustained vanadium price, but if you only go by today and what we have seen,,, to be successful you would need to be trimming the fat and harvesting prime ground with the lowest opex possible. Not the direction we've turned in now, which i'd argue is the direct opposite of that stategy.
An AVL integration (full integration) will mean lots of fat being added into the mix, lots of overhead, higher opex, so RCF if they want that recipe to be successful, absolutely need the vanadium market to turn up, considerably from here, and for sustained periods. I'd say they are at least part betting on that eventuating, else it's straight suicide merging the two into the V market we see today.
TMT Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
