The breakthrough agreement means TNG can get cracking on securing financing ...

https://www.livewiremarkets.com/wir...d-provide-needed-feed-for-hungry-independence



BARRY FITZGERALD View the contributor's profile page
Independent Journalist
2 days ago

TNG LTD (TNG):

It’s a pity that a broad sweep of metals have taken a hit in the lead up to D&D.

The well-watered knees up events around town will be more subdued than they might have been. Mind you, not all commodity prices are wobbly.

Vanadium is a case in point. It’s marched to near-on $US20kg, or twice its level of early 2016. The price strength reflects two things, the first being China dictating its construction industry use more high-strength steel – vanadium’s main use - to protect against earthquakes and building collapses.

Then there is the forecast surge in demand to come from vanadium’s use in lithium-ion batteries, and the much bigger demand expected for vanadium redox batteries (VRBs) which have grid scale applications in the storage and dispatch of renewable energy sources.

Given it is a bright spot, it might have been assumed that some of the ASX-listed vanadium plays might have got a gig during D&D’s three-day talkfest. But not one of them is listed to talk.

Despite missing out on all of the associated bonhomie at D&D, it is not the end of the world for the vanadium stocks. The old ASX platform still works.

TNG used the old platform on Wednesday when it announced that the way had been cleared for a native title mining agreement to be secured for its world-scale Mount Peake vanadium-titanium-iron project in the Northern Territory.

The breakthrough agreement means TNG can get cracking on securing financing for the $850 million stage one development of the project. It is clearly a big ask but there is optimism that financial close might well come in 2019.

That is due in part to the “development partner” status in Mount Peake of German engineering group SMS, one of Germany’s leading users of export credit financing. It is said to be the best credit in the world.
Soundings have also made to Australia’s own export credit agency, EFIC, and the North Australian Infrastructure Fund.

Then there are the all-important life-of-mine offtake agreements which have also been secured for Mount Peake’s trio of products, and what might come from the “strategic co-operation” agreement between TNG and BBI Group, an offshoot of New Zealand heavyweight Todd Corporation, and owner of the Balla Balla vanadium and titanium project in the Pilbara.

BBI was attracted by TNG’s proprietary TIVAN processing technology for potential use at Balla Balla, as well as investigating “commercial operation and synergies in the possible development’’ of Balla Balla and Mount Peake.

TNG last traded at 12.5c for a market cap of $112m.