Member Info for GloucesterR

Yes BFS last qtr of 2022. Which I kind of expected as I don,t think people are realising the sheer scale of the Resource and implications. On a macro level the speed to de carbonisation is just increasing hugely, and the Vision Blue team are used to delivering such major projects. This is not a small ramp up but a Mine that is going to dominate the vanadium market for many years, both in terms of size but more importantly in cost. I look forward to the interviews that will put more meat on the bones. But again for me not a surprise re BFS time lines.

https://www.***************************/ferro-alloy-resources-receives-patent-to-produce-electrolyte-for-vanadium-flow-batteries-interview/4121023082

Not sure if this has been posted, apologies if it has, but talks about significance of recent patent.

Good solid RNS laying more foundation for the BFS. Credibility to By -Products.
Hopefully we will have an interview (Crux would be great) by NB giving update.

Momentum 5.
Good post , great to remind everyone of potential. In a very recent interview Sir M, expanded upon VB's investment philosophy and the key was to target an exit for the fund. No intention to wait for what could be massive dividends. This is a major plus for me at it allows us to piggy back off VB who will be aiming solely for the greatest % return for their investment in the shortest possible time and not. like many mining companies (incl FAR pre deal) of management looking years ahead and content to ignore the share price whilst building a long term business. Targeted exit is everything!

Still very much outside of vision of wider PI's. The key takeaway is the cost advantage. Will allow FAR to dominate the Vanadium market not only due to the incredible cost advantage over competitors but also, as I am sure the BFS and Resource Upgrade will show, by multiples the largest Vanadium deposit in the world.

Articles keep mounting highlighting Electricity Grid imbalances with low wind speeds and lack of alternative green energy. The biggest factor and pressure will come from consumers as wholesale gas prices surging. Sir Mick (as former Conservative party chairman amongst everything else) will be pushing for battery storage as one of the major solutions.

This brief spike and back to floor of circa 30p seems to happen every few weeks. I think its more of an indication of how little free float there is now , with vast majority of investors accepting timescales and patience for the inevitable multiple re rating. so many articles now on the supply side for Grids . With fears now of huge winter price spikes. It wont be long until this isuue takes front and centre stage as both the public and Governements realise the huge spike in wholesale prices is unsustainable if we want a Green world. More ammunition to the argument that FAR will not have a staged development but frog leap stage 1 and build for stage 2 and undercut competitors. A strategy that Xstrata used to huge success.

Megawatts!

Just shows how vulenarble UK ( and other countries by implication) is to Renewable Grid energy. Hugs and pressing need for VFB's.
https://www.telegraph.co.uk/business/2021/09/06/britain-forced-fire-coal-plant-amid-record-power-prices/

The drop in periodic daily renewable production from 14k mgtons to 450!

H. I think that FAR will go for volume over price. The cost curve will just be too attractive. This is in Sir Mick's DNS with Xstrata.
The expansion of the BFS to include By products shows the direction of traffic and VB's thesis is Green technology and VFB's as opposed to Steel. It is a "win win". By making a statement as to production capacity it will deter higher cost competitors and make FAR the "go to" supplier of VFB vanadium.

Thankyou for posting H. Just illustrates the incredible demand there will be for energy storage and resources needed. My key takeaway were two things . Firsttly a 20 fold increase in investment into energy storage $60bn by 2027 and secondly the main issue with VFB is Vanadium cost. US particularly looking at alternatives to compete with Vanadium to reduce cost. NB spoke about this in his target of a $6 target price to allow VFB's to flourish. This can only be done if FAR expedites its BFS to incorporate the stage 2 and then stage 3 projects asap. I really think that Sir M has already foreseen this and original road map has been torn up and no longer a conservative stage ramp up and expansion but a considerably larger plant from the beginning , It will be very difficult for competitors due to FAR's very low and possibly negative cost of production. I am not even factoring in the expansion in steel production requiring higher amounts of Vanadium to hit Carbon neutral targets!

Agree with sentiment. August quiet month for obvious reasons. One thing we do know is that the $7m was deemed for accelerated programme , so no sitting on laurels. Sir Mick will be wanting timelines and answers quickly and methodically and will not countence internal delays. His whole demeanor is one of focus and taking no prisoners. I personally am hoping for a fresh interview in September rather than RN's . That will provide much more detail of where we are and progress etc... Positively everything on the macro level is playing to VB's thesis of decarbonisation both for steel manufacture and VFB's.

As it is quiet , for obvious reasons, on this forum , I had a look at the Vision Blue Twitter feed, If anyone hasn,t seen it it is a wealth of information and all of FAR's interviews. Just watched a short proactive one from end of June that I missed which was really confident and informative.
https://twitter.com/VisionBlueRes

Dodkins. Spot on!

Yes exactly, Sorry £2bn! The key takeaway for me with the deal is the huge confidence both VB and existing FAR management have in the project.

Jag, good point, not guaranteed but both the 25p and 78p have been set for two reasons. Firstly to provide equity (circa $30m) for funding of phase 1. Without this equity input no funding. ( although FAR should be able to raise non debt funding via offtake or streaming due to incredibly high profit margin). Secondly, the 78p tranche and indeed 25p tranche are part of a greater deal, whereby VB will have paid an average of circa 40p for their eventual 30% investment . VB know that if they had bought on those quantaties on the open market the price would have shot up well beyond £1 as the freefloat was so tight. It is admitedly an unusual deal. to forward set a price for significant future investment , VB are no fools and incredibly hard nosed. It should be seen as a huge vote of confidence that VB calculate that the SP will be considerably above 78p post BFS and their investment and sign off on funding. My take is that VB will increase its investment beyond the $42m and FAR will adopt a hybrid stage 1 and 2 requiring greater capital investment and the NAV will be closer to $2m that $1m first stage.

The frustration with the SP is understandable!

No. The agreement is pretty watertight and infact the expedited funding has pit existing FAR management in a very strong position to be able to bring on the expanded production over the next 6 to 9 months to underpin exiting share price but more importantly to significantly expand the BFS to incorporate JORC resource for 4 additional zones. This will make FAR an incredibly attractive vehicle for funding going forward but the frustration with the SP is frustrating. I am in at 36p average, but as we know there is a huge blue sky out there!

Most of this is just academic. You either believe in the story or you don,t. FAR believe , and this has been subject to D/D by Vision Blue, that they are sitting on the worlds largest Vanadium deposit , and the worlds lowest cost producing deposit. If you also believe that The move to net Zero is gaining pace and pressure on Steel usage and VFB adoption means that demand will increase significantly over this decade, then FAR will be worth several $Billion over the next couple of years and going forward. VB have set an agreed equity price of 78p to finalise the last instalment of funds to provide for stage 1 financing. It is a pretty unique deal for both FAR and VB. Giving a valuation of $500m at FID as a minimum to allow the project to go ahead. So it is a waiting game. For me it is a " When" decision as I believe in the project and VB's management ability and support combined with the worlds move to net zero. If you are an "if" investor then the day to day share price and comparisons with other companies will reinforce your lack of confidence.

Dodkins. Completely agree. My take is 18 months post decision to mine. As existing infrastructure in place and site already recieves power etc... The ramp up should be relatively straightforward.