History now so largely irrelevant, but non-Chinese off take and...

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30/07/21

13:44

Post #: 54905990
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Originally posted by Rouge1: ↑

Good historical analysis here but I'd argue that it wasn't about a lack of understanding the market but rather a plunge in graphite prices. Our plan was always to become cash flow positive through the sale of 'mince meat' - other than pausing the mine they haven't really changed plans. They had expected the world to kick into overdrive at least a year sooner than it has. Nobody would have expected Trump-Bolsonaro, the general move to protectionist policy and 'supporting' coal and oil and gas workers. I mean people literally throw rocks and deface Tesla's because they are scared... And nobody would have predicted Covid.

And on the Vanadium front, it's an additive to aluminum, which is not new, so I wouldn't expect the quality assurance process of battery grade materials. I was more interested in the fact that it might make us that little bit more interesting to Tesla (and eventually other automative groups). I mean Tesla did just sign with BHP. And, to me, this means that all we need is money to speed up the process of mining Vanadium. Although, I doubt they'll do this till Vidalia is well and truely up and running.

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History now so largely irrelevant, but non-Chinese off take and the premium pricing for grade and quality that was initially expected, never eventuated. I expect, in hindsight, this was largely because the non-Chinese end users were never given the amount of time required, i.e years, to qualify the product.
As a consequence, SYR fed the Chinese market. Prices fell.
Could be wrong but pretty sure at the time the view was SYR ' supply at any price' strategy when the mine started up was the cause of the fall!

SYR Price at posting: $1.40 Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

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