Berry on LargoTCMR: Which up-and-coming vanadium players do you follow?
CB: The two companies I focus on are Largo Resources Ltd. (LGO:TSX.V) and American Vanadium Corp. (AVC:TSX.V). Denison Mines Corp. (DML:TSX; DNN:NYSE.A) is the only company that produces vanadium as a byproduct of uranium operations in the Western U.S. and it's only a small amount at that.
TCMR: Largo plans to be in production on its Maracas vanadium-platinum group elements project in Brazil in late 2013. It has all the money it needs and is fully permitted. Why does the market not appreciate it?
CB: I think it is just a matter of time. In addition to what you listed, Largo has an offtake agreement with Glencore International plc (GLEN:LSE). The Maracas deposit is the highest-grade, undeveloped vanadium deposit in the world and it is fully funded for construction. Everything you would want to see in a junior that is close to production is embodied in Largo. The company needs to prove to the market that they can build the mine and graduate to the status of a producer. I think the roadblock here is psychological more than anything else.