That's another $200m before the thing has turned a dollar of revenue.
Will we be kept in the dark about the likely operating costs and whether the project can provide an acceptable rate of return at current vanadium prices.
All major vanadium producers respond to changes in the quantity of demand and make the necessary adjustments to their output. In the case of those operations which also make steel from the same ore, such as most of the world's producers, they can survive without the vanadium revenue during a slump.
Even if noble agrees to fund production costs, if the production costs were to exceed revenues then what is left for investors?
Second hand equipment and scrap plus another tainted parliamentary inquiry that insists the project is viable.
TSL Price at posting:
17.0¢ Sentiment: None Disclosure: Held
