If it all goes to plan, I don't see any reason we can't follow in the footsteps of the only major Vanadium producer to come online (that I know about), in the last 5 years, Largo Resources.
In the last 10 years, their share price went from $0.06 up to a high of $4.65. Imagine if you'd put $50K in them back in the day:
As you can see, it wasn't all smooth sailing for Largo either. But look at the long game here.
Where are we sitting on their graph, pre-production around 4-5 years ago?
It's easy to see the primary driver for their stellar rise, with Vanadium prices skyrocketing:
Now don't forget, we not only have Vanadium, but also high value Titanium Dioxide and Iron Ore (as well as other potential $ generators like Silica byproducts and Phosphorous to factor into the mix).
Then add to that, TiVAN licencing once the technology has been proven on a commercial scale (the likes of Todd Corp are very interested in it for their W.A. planned mine). The "unproven" aspect constantly bandied around by people with vested interests has not worried me at all, ever since SMS have guaranteed product quality and quantity, and a fixed CAPEX.
The refinery will use already commercially proven methods, across the board. Just put together in a unique way. That is why SMS are so confident and are prepared to guarantee it.
A quick look at the trend for titanium dioxide demand:
We will be producing 2 of the most in high demand metals on the planet right now, with forecasted demand in both, to continue exponentially.
Supply constraints for Vanadium in particular, with China shutting down plants, and issues in Russia and South Africa, mean we are sitting in the box seat.
The only major hurdle left is the structuring of finance, and how much dilution we'll suffer as shareholders.
Sure, the CAPEX is enormous, but even a dummy can figure out the billions of profit on offer here.
I have faith that the German KfW Development Bank can put this deal together. They have a proven history of raising billions for such projects.
And if not, I wouldn't be at all surprised that a large Private mining firm like Todd Corporation (already doing the numbers) / Rio / BHP / FMG take a serious look at it.
I suspect the SP will dawdle until the numbers have been crunched. That might not suit some impatient investors. But you never know when an announcement will come in out of the blue, and that's why I'm sitting on my hands. I've sat it out this long, and have a good feeling this will be our year.
Cheers to a happy and prosperous 2019 everyone, from a freezing Aussie stuck in the UK!
