There is no doubt about the long term prospective of AXO as long as its customers are alive. There are not so many in the whole world, about a dozen.
The beauty of AXO is its 6mt concentrate contracts for 15 years. That is 90mt. It did cause a problem.
AXO need to find about 150mt reserve to meet the contract obligation. Besides, AXO need to find a lot more if it wants to produce ferrovanadium.
My guts feeling is AXO will never have a chance to produce ferrovanadium because Chinese will keep they busy by asking for more titanomagnetite ore, so Chinese can produce vanadium as by-products in China.
But in short term, the oversupply of shares might put a cap on the share price. But it is OK for long-term holders, and offer a great opportunity to top up.
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