RE: RNS22 Oct 2020 17:46
Hi LL,
Firstly let me say , I do believe the asset and resource is world class but I strongly believe the management will fall short and will not deliver the Bala project on timescales expected or at all .But that does not mean there is no money to be made here. I maintain selling the asset is their best hope.
I have a strong mistrust of the CEO. His track record in other projects in Kaz justifies my reasons . He does have the right team in place either.
I continue to hold my shares but no intention of buying more yet as there is time to see how the next 6 months pan out .
If you have time there are posts from a poster name Redroy, who I respect a lot as his balanced views and research was appreciated .i am not sure if he is still invested here though .
VSA broker note mentions that it includes 45m share dilution for the $5m required to ramp up the pilot plant . The big share price valuations tend to achieved once debt has been paid down and Co is producing nameplate and profitability as expected . If you follow miners in early stage to production , you will realise it takes years to achieve valuations to anywhere broker targets , many never get close . So I always take that with a pinch of salt .
I maintain more cash is required for the BFS and electric furnace. I think it is too early to get an off take agreement at present .
From the final results in June
The Company is currently carrying out an expansion project which will lower the average cost of production and as part of this project, will be connecting to a larger capacity and more reliable power supply as described above. Although a substantial part of this expansion has already been completed, the plans include completion of the link to the adjacent high voltage powerline and the installation of an electric arc furnace. The full benefits of the expansion depend upon the raising of sufficient finance and the successful completion of these projects.
The BFS/DFS study is only planned for phase I of the project , so any valuations stated for the whole Phase I and 2 project will be years away . Covid has delayed the study and ramp as you know .
Do not expect the BFS study for phase I this year. Q1 2021 at the earliest .
Balasausqandiq
In parallel with existing operations discussed above, and using the resulting cash flows, the Company plans to continue development of the Balasausqandiq vanadium deposit. The western bankable feasibility study has been initiated with leading consulting companies in the industry. The current study is for Phase 1 of the development plan, including construction of a process facility to treat one million tonnes per year of ore, producing some 5,600 tonnes per year of vanadium pentoxide, plus by-products which are likely to amount to around a third of revenue. A subsequent expansion is planned which will increase vanadium pentoxide production to 22,400 tonnes per year, plus by-products, but this will not be included in the currently
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