Ferro-alloy Resources Share Discussion Threads

[mesb48] 01/7/2021 21:59

cyber - what sort of institution do you think will lend 10x against the cash flow of the small operation? Seems really high to me for this type of business. That said, I am not concerned at all they will raise the debt finance for the main project unless the capex budget balloons from previous expectations - I imagine there will be a queue of potential lenders and it will be mainly for the company to select the best terms

[cyberbub] 30/6/2021 06:57

Agreed! The key of course is for the mine plan/BFS to get X% bigger, with much less than X% equity dilution... I'm confident that Mick Davies will manage to pull in a good debt package with all his contacts and credibility... It will also be very helpful if the small operation can be making decent money soon, as that will help to raise debt against it... If it's making $12M say, that should support $120M of debt on its own, plus VBR's planned equity investment which should support another $100M or so... Not far off what they need to go direct to Stage 2...DYOR etc

[driver101] 29/6/2021 19:51

From the interview Phase 2, 3, or 4 whatever the demand this could get bigger than we first thought.

[ga_dti] 29/6/2021 09:23

Watch our latest interview with Nick Bridgen discussing a further $7m investment received from Vision Blue and Final Results for the year ended 31st December 2020:

[goldilocks1] 29/6/2021 09:18

zb27 - by definition, traders trade and amateurs who try to be clever at that game nearly always lose money ..... unquestionably, this stock has potential but requires at least medium term investment

[easwarareddy] 29/6/2021 01:15

Will be nice when we're firmly above 50p. Don't think too long to wait. Before end of July?

[cyberbub] 28/6/2021 20:39

Lance, have a look at the company website, you'll see that they could be making $400M revenue (£300M) p.a. after Stage 2 construction. (22,500 tons at an $8 average V sale price).

Say £200M conservatively after tax, GA and sustaining capex... This is an enormous resource and super cheap to produce the output!

On the current plan there will be 500M shares in issue, giving a likely share price of £4 at a p/e of 10... A simple 5% divi gives 20p per share (at 2x divi coverage)... Although if they're making that much money they could probably afford an even higher divi...

Yes, a bit back-of-a-fag-packet but the numbers add up... and I think Sir Mick Davies can deliver it...

This may all change after their updating of the BFS, but certainly won't get significantly worse IMO!

No advice intended DYOR

[ttlance] 28/6/2021 18:53

Cyber, what’s your 20p dividend per share based on?

[zb27] 28/6/2021 18:05

Cyber - great post. If only 'investors' could see it the way you have painted the picture! Invest now to reap the rewards for years to come! Nowadays most 'traders' want instant profit, 100% in a day. Not realistic and rainbow chasing, ALWAYS lose in the end. Most difficult thing is not to do anything, and sit on your hands! trust me. As Sir Mick has shown today, news can now come anytime, the onus is on them to progress this as quickly as possible, and looks like that's exactly what they are doing. Rainbow chasers will quickly come to buy back in. VB and Sir Mick have not bought in here to make small gains, these guys are big heavy weights, they see the big picture, and they probably thinking BILLIONS!!

[cyberbub] 28/6/2021 17:02

I agree Zb27, as long as people are aware that it will probably take 3 years to get there... Still better than leaving your money in the bank at 1% interest...! And in the fullness of time there could be a 20p dividend IMO... So potentially a 65% divi for anyone buying today.... Buy £30k worth and you could be making £20k per year when in full production... Enough for many people to retire on, if your house is paid off and you have a state pension as well...No advice intended of course...

[zb27] 28/6/2021 15:27

Risk/reward from here, best on the market. Huge support at 30p. Target could be £2 £3 £4!!! Ticks ALL the boxes. And now they have said BFS details will be drip fed to the market as milestones are achieved!!!Exciting. DYOR

[goldilocks1] 28/6/2021 11:48

an interesting article
thank you

[catsick] 28/6/2021 11:30

https://www.vanadiumcorp.com/news/industry/chinas-new-vanadium-steel-rebar-standards-take-effect-whats-next-for-vanadium-market/

[goldilocks1] 28/6/2021 09:57

mikro is absolutely correct ..... potentially great risk/reward but needs to be locked away for 2 years (or several more)

[driver101] 28/6/2021 09:17

zb

Agree this is still very under the radar, to have the potential to become the leading vanadium asset in the world. You couldn’t ask more than that if you want a V stock still a nice price to keep accumulating.

[zb27] 28/6/2021 09:08

Most people have not cottoned on. As you say risk/reward, one of the best 'super cycle' metal plays available. Sir Mick had upto 3 months to invest a further $7m, he couldnt wait, few weeks in and he has pumped further money in.Remember NPV $2 Billion, IRR 96%, payback period 1 year. You can see why Sir Mick and his chums in Vision Blue are invested here. They know they have a special dream project, and all they see is £££££ ;)

[mikro1] 28/6/2021 08:50

Great news again - I bought some more this am. On a 2 year view - this is low risk very high reward in my opinion.

[goldilocks1] 28/6/2021 08:42

surely rebar is always carbon steel and never stainless .... if so, where does vanadium come into the equation

[catsick] 28/6/2021 07:36

Vanadium prospects look excellent as well as the battery upside the high prices of steel at the moment and the fact that a small addition on vanadium can dramatically improve the quality of steel and amount needed have to be super bullish, the poor quality of the rebar in the Miami condo that just collapsed will shine a light on the poor quality of rebar globally ...

[cyberbub] 28/6/2021 07:31

Great news on the further investment as promised by VBR - and Sir Mick thinks it could become the biggest vanadium project in the world...The historical 2020 results are irrelevant now in the scheme of things IMO. It's full steam ahead...NAI

[goldilocks1] 22/6/2021 10:04

best bet is to buy a few - if you are so inclined - then stick 'em in a drawer and come back in 2/3 years time to see if crumbled to dust or starting to sprout like a potato

[cyberbub] 21/6/2021 16:56

Nice 145k late buy...

[cyberbub] 21/6/2021 12:03

Still climbing... Remember we do actually produce vanadium today, modest amounts compared to what's planned but it's going to be growing in the next few months.. and if V was to go on a run to say $12-15 it wouldn't do us any harm at all! Let's hope the management have learned from the last V spike and they're using some of their new money to buy in raw material (or engage in contracts to buy) at low prices and sell at (what looks likely) higher prices...

[cyberbub] 18/6/2021 19:03

Vanadium price breaking higher again...

[losses] 17/6/2021 04:32

Mining stocks fell on Wednesday after China's announcement to release metal reserves to curb commodity prices put miners under pressure.