TMT DFS, page-29

As much as it has pained us to see the sharp decline of Vanadium price (and TMT share price along with it), there are actually some positives from this situation...

For a start, the recent low V price has really helped to separate the men from the boys. Not many V projects can be viable with low V price, and TMT's project is one of the special few. More importantly I believe it has also provided a "wake up call" to any potential funders that low grade, high cost V projects are extremely risky to fund and they should focus on high quality projects such as TMT's.

From offtake perspective, I sort of feel that the extremely high and volatile V price, like we saw last year, is not a great environment to go hunting for offtakes. I'm of the view that buyers would be more reluctant to lock-in offtakes when the price is too high (especially knowing that the price level is not sustainable). Now that V price has returned to a more "reasonable" level, there should be more interest from potential buyers to lock-in offtakes.
TMT's timing also lines up quite nicely with the expiry of Largo-Glencore offtake agreement (i.e. mid next year, but the decision will need to be finalised in November this year) -- credit to @Therookie88 for pointing this out. The fact that Largo recently established their own in-house sales team, I think is a strong indication that they will discontinue the offtake with Glencore. As a result, Glencore will then need to look for a new partner. TMT is obviously in the best position for that.

Aside from the above, compared to last year, it has now become much more evident that TMT is in the number one position to be the next low cost Vanadium producer. Our neighbour, although having similar high grade resource, is clearly far behind us in terms of progress/development.



Anyway, in summary although the current SP is extremely depressing to look at, fundamentally TMT is positioned better than ever to move forward and bring the project to production.