VRFB - A Game Changer!13 Apr 2020 16:10
The world is way ahead now on the requirement for large energy storage projects around the globe and the key point which is underlined again and again is the need for long-duration, reliable and safe storage which uses an electrolyte which does not degrade and which can be recycled. The key advantage with Vanadium is it is one mineral in the same format added to the electrolyte and used on both sides of the membrane. This is unique in the flow battery world and the fact that vanadium is so reliable and can be reused makes it the number one for the application.
The world situation only amplifies the need for energy storage and this company will have more influence on this globally than any other vanadium miner and processor. The opportunity to ramp up production, from the worlds largest high-grade vanadium resource is easy to understand. Bushveld Minerals have well in excess of 2,000,000 tonnes in the ground. This is not ore it is pure vanadium. That will make a lot of V203 or V205 and the life of the mines will be multiple generations.
The income streams from the vanadium in VRFB is huge and it is very clear the pipeline for these projects is going to be growing year on year. This will lead to huge revenues and be very compelling for investors.
I am very happy to hold this share and even happier to continue to add as I can.
At this moment, we are well aware of large deliveries of Vanadium to the US bring in large amounts of cash, even though the world is in lockdown. Once lockdown is over we will see this business ramp up very quickly and there are multiple projects which will be ready to receive the vanadium produced here. Vanadium prices are already pushing up again as the requirements in China are already undersupplied.
This remains one of the best long term opportunities for capital growth and income growth through dividends as the year's progress. Anyone with the foresight to invest at the moment will see very good rewards in the 3/5/10 and 15 years holds.
Cheers, RK