We are one of only a relatively small number of companies globally looking to become a primary vanadium producer. The upside is that our capex cost will likely be considerably lower than others, however we are heavily leveraged against the vanadium price. Companies that are developing processes to extract multiple minerals are less welded to the vanadium price but the complicated processing techniques require higher capex (most PFS figures around $1B) and probably come with higher technical risk given they are new processes.
Vanadium has traditionally had an unstable price and the chart is littered with bull runs that are short lived. Most here are betting that the changing fundamentals (Chinese rebar standards and elimination of vanadium production via stone coal plus the potential uptake of VRBs) will keep the V price high enough in the short to medium term to make TMT and AVL the coys that are most likely to secure capex and build a mine.
Everything has risk and you’ll probably get a different answer on other forums. DYOR and decide where you feel comfortable.
TMT Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
