The speculative price spike in Vanadium led to a worldwide search for Vanadium deposits. You can forget about anything under 0.8% due to the CAPEX being over 1 billion. The fact remains that there are few resources out there like TMT and AVL and nothing better was discovered during the spike (despite $100s of millions poured into efforts in America, Canada, Africa and Australia). TMT remains the pick.
TMT has a market cap of $17m and with 5-7 mil cash - let's use the $5m projected at end of this quarter - its EV is $12 million.
Vanadium batteries will soak up any cheap Vanadium that becomes available. Environmental regulations on dirty Vanadium aren't going to get softer in the future. Largo will be winding up towards 2030. India govt has just committed to $1.4 trillion in infrastructure investment -
So there are a lot of positive data points.
One thing is almost certain, the world isn't going to stop developing and despite booms and busts, it will need more Vanadium. Is the timing right?
Funding done to DFS and an EV of approx $12 million with a post tax NPV10 of $499 million at long term price of $10.40/lb ($9.98 at current exchange rate) or $848.8 million at $13 (12.48/lb current exchange rate), it's a good risk reward ratio IMO.
