RE: Thank you for the recommendations.19 Aug 2022 10:55
UncleJohn - you are correct - the SP of 75 Million is absurd.
... absurd when compared with Ferro-Alloy Resources' 66M valuation - they produce less than a tenth what we do, from old scrap they have had to buy in, and based in the puppet Klepto-state of Kazahkstan
... absurd when the 3 Kiln production infrastructure we will soon have at our disposal would have cost 300-400M USD to build from new - see, for example, the A$700M already spent by atlantic on Windimurra to try and get back up to a production level of 4,250mTV (7,600T V2O5)
... absurd when you consider our strong downstream links with multiple VRFB manufacturers, one of which we own a significant (and controlling) stake in, right at the point the VRFB battery technology comes on stream in a big way (and hell do we need it now !)
... absurd when you realise that within 6 months we will have up and running the world's largest Vanadium electrolyte facility in the southern hemisphere, right on the doorstep of the biggest economy in south Africa, right at the time that it starts to grapple with its notoriously bad carbon emissions at the same time as fixing Eskom supply intermittency.
The real reason that the SP is at this level is because AIM market makers simply act to punt out shares they got cheap in a placing, and if they did not get them cheap in placings then they sell short, knowing that they'll be able to drop the price back later on to raid those naive enough to gamble on spreadbet platforms or foolish enough to think that the short-term SP is the true measure of the business.
The trolls know all this which is why they spend so much time knocking companies rather than really understanding them.
The market irrationality, maintained, as it is, by a very restricted AIM investor base, can exist until the next herd of traders turn up to try their luck on a short-term punt that the Market Makers are happy to sell into.
Real investors know the true value of the company and hold long term, and the really smart ones buy more shares in good companies when they can see that the market is giving them irrationally good investment opportunities.
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