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SG .. Great find
I liked the words:
"We will sign off soon on an important project that Eskom will get involved in, which uses in a large part a loan made by the World Bank to the construction of the Medupi Power Station.
that sounds imminent to me :-)
Yachty
Largo reported a net loss of $8.6 million in Q3 2019 which probably didn't help. But going forward the sentiment is very positive.
Paulo Misk, President and Chief Executive Officer for Largo, stated: "Operations at the Maracás Menchen Mine performed well in the third quarter 2019 following increased production from the expansion project. Cash operating costs excluding royalties2 were US$2.81 per pound V2O5 in Q3 2019 representing a decrease of 8% over Q3 2018. Although the Company achieved lower operating and unit costs during the quarter, profitability continued to be impacted as a result of lower vanadium prices combined with the Company's re-measurement of trade receivables / payables as a result of its current off-take agreement and consequently, the Company recorded a net loss of $8.6 million in Q3 2019. The Board realizes that the share price does not currently reflect the business value of the Company and is considering instituting a share repurchase program by way of a Normal Course Issuer Bid."
He continued: "The Company believes that vanadium prices are unsustainably low and expects sentiment and prices to improve as evidenced by the recent price increase for ferrovanadium in Europe. Despite greater vanadium consumption in China over the last two years, the current price environment is largely attributable to high iron ore prices and a dramatic increase in Chinese V2O5 **** production earlier in 2019 from vanadium-titano magnetite (VTM) deposits. The increase in Chinese vanadium supply, combined with greater than anticipated niobium substitution put vanadium prices under pressure throughout 2019. Going forward, we expect vanadium market sentiment to improve following current shutdowns from high cost stone coal producers, a decline in V2O5 **** production and a reverse in niobium substitution on the back of lower vanadium prices."
https://www.vanadiumprice.com/uk-local-energy-market-trial-achieves-breakthrough-as-flexibility-trading-platform-goes-live-2/
"A 1MWh redT vanadium redox flow battery system was installed in 2017. RedT is currently in the middle of a merger with US vanadium redox flow battery maker Avalon Battery, a move which now has the backing of vanadium producer Bushveld Minerals."
Most of us expected the Vanchem deal to close at $68m until we got update that the deal had been renegotiated and the final price was $53.5m. No one would have batted an eye lid had the deal come in at the original price of $68m as that in itself was a very good deal.
With the $14.5m saved on the Vanchem deal the company has been able to invest $5m into the Avalon Merger, and now a further $12m into buying Enerox.
Now if that's not great business I don't know what is.... The BOD knows its strategy better than any of us and they are putting all the pieces of the Jigsaw in place at a much more accelerated pace than even i was expecting.
Patience is the key
GLA
Bushveld buys $12-million hedge against vanadium price volatility
https://www.kitco.com/news/2019-11-12/-Bushveld-buys-12-million-hedge-against-vanadium-price-volatility.html
The BOD is moving fast with its VRFB Plans...
Enerox is one of the world's largest researchers, developers, manufacturers and distributors of vanadium redox flow batteries ("VRFB"), headquartered in Wiener Neudorf, Austria. It has installed VRFBs at over 130 sites globally.
Its great to see the benefits from the hard work and investment the BOD have put in to improving production this year. We are now reaping the benefits, and the lessons learnt will continue to benefit Vametco and give a fast start to Vanchem.
The last published record monthly Production was in March at 270 mtV. The new record in September is 310 mtV showing a 15% improvement. Someone mentioned on the board yesterday that we hit the October target so looking very good for a strong finish to the year.
We need to hit around 850 mtV to hit the FY target of 2800 mtV or 950 mtV to hit 2900 mtV. I would not be surprised if we see a 1000 mtV quarter.
If we hit 850 mtV that would be a 29% improvement compared to 4Q 2018, 950 mtV would be 44% improvement , and 1000 mtV would be 52% improvement. These clearly demonstrate a huge leap forward.
All the above is without 2 months of Production at Vanchem..
Now imagine 2020 with Vametco and Vanchem combined....
In the last month we have seen some of the best RNS's demonstrating the progress the BOD is making to deliver a World Class Integrated Platform. We just need to let them continue doing the fantastic job they are doing and not get distracted by the daily shenanigans. Its all falling into place and no one can argue with that fact.
GLA
Vanchem done - Tick
VRFB Partnerships - Tick
Record Production - Tick
Mokopane Licence - really imminent
Eskom VRFB Contract - soon
Electrolyte Plan - soon
JSE Listing - soon
whats there not to like... GLA
https://www.vanadiumcorp.com/news/industry/huge-battery-investments-drop-energy-storage-costs-faster-than-expected-threatening-natural-gas/
The global energy transition is happening faster than the models predicted, according to a report released today by the Rocky Mountain Institute, thanks to massive investments in the advanced-battery technology ecosystem.
Previous and planned investments total $150 billion through 2023, RMI calculates—the equivalent of every person in the world chipping in $20. In the first half of 2019 alone, venture-capital firms contributed $1.4 billion to energy storage technology companies.
https://www.vanadiumcorp.com/news/industry/mining-companies-edge-towards-renewable-energy-options/
Meanwhile, Bushveld Energy head of origination and investment Peter Oldacre said vanadium redox flow batteries were becoming an excellent option in stationary storage. He foresees a huge opportunity for South Africa, which has the largest high-grade deposits of vanadium in the world. South Africa also processes most of its vanadium.
Oldacre said a project to demonstrate what vanadium batteries can do in a hybrid mini-grid space, would commission in the third quarter of 2020, which would give it an ideal opportunity to showcase its technology.
https://www.vanadiumcorp.com/news/industry/batteries-going-with-the-flow/