The vanadium and titanium hopeful stands out as a beacon in a desert of commodities gloom, having secured a Korean offtake partner for its Mount Peake project near Alice Springs.
Now comes the even harder part of procuring funding for the project, costed at $970m but returning an estimated $13.6bn of cashflow over a 17-year lifespan.
TNG on Monday revealed Korea’s Woojin would buy a minimum 60 per cent of all the vanadium output over the life of the mine.
“It is a very tight commercial and bankable document,’’ says TNG chief Paul Burton.
Breakaway Research values TNG at 97c a share, and the project at $2.9bn based on a “conceptual funding scenario’’, which sees TNG selling 60 per cent of the project.
Holders won’t be tapped for equity. “We hope that financing discussions can be concluded swiftly and we can stick with our development timetable,’’ Burton says.
