RE: Alfa23 Feb 2018 07:49
pablo2
Just to help you out you may find this useful DYOR
'Vanadium pentoxide (V2O5) prices moved from around US$5 per lb. at the end of December 2016 to US$12.50 per lb. at the end of July 2017, before closing the year at US$9.50 per lb, and the U.K.-based analyst predicts the price will reach US$13.20 per lb. by the end of 2018, US$15.00 per lb. by the end of 2019, and US$19 per lb. by the end of 2020.'
If the V2O5 price is expected to double over the 3 years from 31st December 2017, what will that do for the economics of Mokopane?
I calculate that it would give Mokopane gross profits of $330m pa.
Mokopane development can't be far away.
FM seemed to be hinting that the mining licence was imminent a few months ago.
Also, this % rise in the V2O5 price would mean a similar rise in the FeV price, putting it up to over $90,000 per tonne. What would that do for the economics of Vametco?
Vametco costs are around $17,000 per tonne and production would be at least 5,000 tonnes pa by then.
Incredible potential profits!
In fact, FeV of $90,000 per tonne, costs of say $30,000 per tonne (being ultra conservative) and production of 5,000 tonnes pa, would generate net profits of $300m.
Our 59.1% would look very healthy at $177m net profit per year.
Add that to Mokopane -
Potential gross profits are $330m, let's be conservative and knock off another $65m for other expenses (royalties, depreciation and admin expenses), leaving our 64% share worth another $170m net profit per annum.
On those sorts of figures you could find that the annual dividend to shareholders would be more than the current share price.
Let's hope Hallgarten's vanadium price targets become reality.
Add to these figures the potential for another brownfield site acquisition, electrolyte production, Bushveld Energy VRFBs and Imaloto coal.
What a great time to be a vanadium producer and a Bushveld shareholder! :)
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