There is no confusion here over company structure, VSUN is a fully owned subsidiary of AVL.
Interestingly VSUN share the same office - Level 1, 85 Havelock StreetWest Perth WA as their parent company AVL.
Vince is a very talented individual and the AVL employs some bright minds, i'm not naive enough to believe that the staff don't cross boundaries to support each other. More importantly the staff at VSun have wages to pay and those wages are funded from the parent company AVL through their financial support for VSun.
My concern is that AVL is bankrolling VSUN to develop the VRB industry in Australia. Don't get me wrong, I believe that VRB's have a big future in Australia and beyond but for now the foreseeable future this is not a profitable business and a drain on company resources.
I have been invested in AVL since the YRR days and bought into a mining company to exploit a Vanadium deposit as many other here no doubt have. During this time I have witnessed AVL been distracted on several side shows, the most prominent being chasing a lithium deposit in South Africa, this ended up being a duster and subsequent waste on both human and financial capital. Not much is said of this deposit these days.
To be frank the **anitha project DFS has taken too long. Right next door to AVL are TMT, they were very late to the party and did their first drilling in 2017. They were not distracted by side shows. TMT delivered their DFS in August 2019.
2% of Vanadium world Vanadium demand is for Energy Storage, sure this will grow in time, but as we sit 90% of the worlds Vanadium demand is for the steel market. Lets concentrate on being miners, lets complete the DFS, get some offtake agreements and build a mine. When we have done this by all means lets sink some human and financial capital into VSUN and look at building a value added Electrolyte business to maximise shareholder return from our mine but until then lets keep focused on what is going to generate a financial return before we face more dilution.
AVL Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
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