Share certs, popsicle sticks and electrolyte from microgramsVanadium Battery Electrolyte needs high quality vanadium, how does this work for VRB without any vanadium mine in North America one can find? Russia, China?
When and how much will it take VanadiumCorp to build a mine when we have not graduated past exploration status in over 15 years?
Also, if the electrolyte making equipment is from another company, what value does this have to VRB shareholders or the battery market? Any what company sells this equipment? That could have helped VRB shareholders before they lost great values in their share.
Has VanadiumCorp ever produced a pound or litre of vanadium product ever?
VRB's main challenge could possibly be identifying the challenges of overcoming microcap handicaps associated with many risk factors like being small, share position driven and undercapitalized. The results thus far seem to indicate the possibility of small groups of people fighting for shares and control which is known risk factor of smallmicrocap companies.
Here is some good ref data from a company that produces vanadium already for many years. ....That helps when you want to produce a vanadium product from vanadium.
https://www.bushveldenergy.com/wp-content/uploads/2020/03/Bushveld-Minerals_Vanadium-101-final-1.pdf
Some good news is batteries are on a good path to getting smaller....
and there is always some light at the end of the tunnel....
Here are the risks according to the objective internet.
Investing in junior TSX venture stocks with a small market cap and involved in the development of mining projects, especially in the battery materials sector like vanadium form vanadium-titanium-iron potential mines for battery-grade electrolytes, which carries several significant risk factors. Here are some of the largest risk factors you should consider:
Exploration and Development Risk: Projects at the exploration stage have a higher level of uncertainty. There's a risk that the deposits may not be as promising or economically viable as initially thought. Delays, technical challenges, and unexpected issues can arise during the development process.
Market Volatility and Liquidity Risk: Junior stocks on the TSX Venture Exchange can be highly volatile and illiquid. This means that selling your shares at desired prices may be difficult, especially if the stock is thinly traded.
Financing Risk: Junior companies often rely on equity financing to fund their projects. If they struggle to secure funding, it can lead to delays in development or even project cancellation. Dilution of existing shareholders' equity is a common concern with multiple rounds of financing.
Commodity Price Risk: The prices of commodities like vanadium, titanium, and iron can be volatile and subject to global supply-demand dynamics. Fluctuations in prices can directly impact the profitability of mining projects.
Operational Risks: The development of mines involves complex operations that can be impacted by various factors, including technical issues, regulatory changes, and environmental challenges. Delays, cost overruns, or operational disruptions can significantly affect the project's viability.
Regulatory and Permitting Risk: Obtaining necessary permits for mining and processing operations can be time-consuming and subject to regulatory changes. Delays in obtaining permits can hinder project progress and increase costs.
Technical Challenges: Developing a process to extract, mill, and purify vanadium, from vanadium-titanium, and iron ores into battery-grade liquid electrolytes is technologically complex. Technical challenges could lead to increased costs and project delays.
Project Economics and Feasibility: The economic viability of a mining project depends on factors like resource estimates, operating costs, and the projected market demand for the final product. If these factors are not accurately assessed, it could lead to financial losses.
Infrastructure and Logistics: Developing mining projects in remote areas like Chibougamau and Matagami in Quebec requires proper infrastructure for transportation, power supply, and water management. Insufficient infrastructure could increase costs and operational challenges.
Environmental and Social Risks: Mining projects must adhere to stringent environmental and social standards. Any negative impact on the environment or local communities could result in legal, reputational, and operational risks.
Competitive Landscape: Other companies operating in the same sector or region could pose competitive challenges. If the market becomes saturated with similar projects, it might affect pricing and market share.
Macroeconomic Factors: Economic downturns, currency fluctuations, and geopolitical events can impact demand for commodities, investor sentiment, and project financing.
Given these risks, investing in junior TSX venture stocks with small market caps and mining projects at the exploration stage requires careful due diligence, diversification of your investment portfolio, and a willingness to accept a higher level of risk. It's advisable to consult with financial professionals who have expertise in the mining and resources sector before making any investment decisions. GLTA, Hope springs eternal VITF