The rationale of MC to mining capex ratio is irrelevant IMO. Finance can come from equity, not debt, and even with significant dilution, the upside from ~ $30m MC to NPV over $1b is enormous.
You either think vanadium is a thing, or not, and you either think we are going to be a miner, or not.
If you are believer, TMT just went from being a cheap specie to a deeply undervalued, probable producer on that PFS. Anyway of cutting it, the numbers are fantastic. I am staying long.
Vanadium supply is not going to come from the same historical supply source of cheap slag so price risk is minimal - Chinese environmental controls have taken care of that. The supply side is being crunched just as demand ramps up. A GWh of vanadium redox battery needs 5500t vanadium.
I think a classic sell the news day yesterday spooked week hands. All the buyers stayed off screen and lapped it up. The blessing and curse of illiquid stocks - they can move up and down quickly. Saw the exact same thing on a cobalt play recently - high PFS capex selling spooked weak hands.
Looking for the 38.5 support to hold today. GLTAH
TMT Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
