RE:RE:RE:Vanadium in the ground at Maracas, recent reserves increaseDrhoho wrote: ... My question as a shareholder is: the future affect on our holdings based upon stock SP, dividends, share buybacks, if their assumptions and projections prove to be in the ballpark?
The Technical Report will be available on SEDAR soon. So it’s best to wait for it. For what it’s worth, as per my back-of-the-envelope estimation the after-tax NPV related to the Vanadium operations = around US$900M - 1B (discount rate = 7%, LoM = 20 years, annual production capacity = 13,200T and average 15,900T from 2032; average selling price inclusive of HP premium = US$8.8/lb).
Note: In the 2017 Tech Report, a long term flat rate of US$6.34/lb was used (HP premium was excluded from the base case analysis). Imo, the assumption of a flat selling rate of US$8.80/lb (inclusive of HP premium) seems to be a bit too ambitious considering the fact that, since commercial independence, our revenue per pound of V2O5 equivalent (inclusive of HP premium) sold has been, on average, lower than the V2O5 spot price of the same period. Perhaps they believe in a strong recovery of the HP market?
BTW, we are not even talking about the additional and considerable revenue stream from LCE here.