Bridge Street Capital Update-Titanium to enhance project economics

I received the update from a mate who is a client of Bridge...I rang a company spokesman and it will be live on the web site this morning...should be on

https://www.tmtlimited.com.au/research_report

Key takeaways

Initial testwork demonstrates the potential for Yarrabubba to produce a titanium-rich by-product and further enhance project economics

• The revenue impact could be quite significant for the project. With a pricing assumption of US$200/t (ilmenite is currently >US$250/t) the production of 170-180ktpa could contribute an additional 15% to revenue, employing quite conservative assumptions. This equates to A$50 million of extra revenues for the project per year.
• The incremental impact on the project’s NPV could be even greater as the ilmenite product would need only to carry costs associated with gravity concentration of the tails and haulage to the port
• Based on the conceptual analysis, Yarrabubba is seen as a stand-alone Stage 1, vanadium-magnetite project, potentially fundable by a small company, with attractive returns and a sub-2 year payback based on commodity price assumptions (including a V2O5 price of US$7/lb and 25% payability for the V2O5).
• Incorporation of revenues from a titanium feedstock by-product could further enhance returns

Bridge Street’s conservative assumptions estimates a potential additional A$50 million of revenues per year for the titanium, which alone equals TMT’s current market cap!!!!!.

They have been very conservative on their production titanium numbers at 170-180ktpa whereas MD Ian Prentice estimated up to 300ktpa in his recent Pro-active interview, a potential A$70 million of extra revenue per year


Most of this revenue bar transport costs will go to the bottom line....so that makes a potential profit for the iron-vanadium and titanium close to $150 million per year on commodity price assumption of circa 40% below current levels

yes the SPP halted momentum...but fully funded with these potential returns has us primed for a great 2021...imagine if the v price takes off as expected!!