With the DFS due in a few weeks, I thought I might revisit the PFS numbers (released 22/06/21) so that I knew what to look for when it drops. - NPV (post tax) using 8% Discount rate on the current 74% ownership = USD 884M Financial predictions (based on 100% ownership, not the actual 74% - reduce accordingly): - EBITDA for life of mine (25yrs) USD 5.8B (USD 231M p.a) - Average Annual free cash flow (from commencement) USD 139M - IRR (post-tax) 45% - Opex: USD 3.08/lb - Capex: USD 200M (includes a 15% contingency) - Payback = 25 months - Vanadium price assumed USD 9.03/lb (but still profitable at USD 6.00/lb) - They considered that the best price range for Vanadium to be sitting at for battery take up is between $7.50- $10/lb
Since the PFS, there has been inflation pressure, but counter to that, there is also significant improved product retrievals from mined samples.
Hard not to be excited by this project
VR8 Price at posting:
7.2¢ Sentiment: Hold Disclosure: Held
