"...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."
Absolutely 100% agree !! And if the merger goes ahead, shareholders can probably expect more cap raises to fund the mother of all integration studies and perhaps even a revised EPA application, because CR's are in the DNA of AVL. And so the SOI dilution with continue to go higher, even more than the current eye watering levels at AVL. It could also be well within the realms of possibility that we see another spike in Vanadium prices in the medium term, but this merged entity won't be ready to time the FID to best advantage. RCF and Regal must be able to forsee these issues too, which makes me wonder if the whole merger plan provides an exit strategy for them, somehow.
All IMHO, DYOR
TMT Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
