This thread is not about the general pressure on this (and many other) small caps in the current climate but about specific highly questionable trades. I'm sure you've been around long enough to know this.
Re the cap costs - my understanding is the project (being such a seriously massive resource) was always going to need a large player to develop it - hence why management have been patiently ticking off the boxes to derisk the project and present to end users at the large end of the scale (especially cultivating China). Nothing has really changed there. In fact, it appears the recent success to open up the Titanium as not only a viable by-product but a primary product alongside (or even beyond) the Vanadium has not only increased project value but opened up a whole new set of potential investment. Without doubt the current climate is constrained - but equally life goes on and large companies need to look to future supply. Mkt cap is indeed puny for what appears by world standards a very significant resource.
Also my understanding is that another key benefit of the new process is that it allows for a modular development - giving quite a bit of flexibility on the capex side.
SPM Price at posting:
14.0¢ Sentiment: LT Buy Disclosure: Held
