Vanadium One Iron Corp. V.VDR

RE:Iron ore at new highs since 2014

[Sciencegeek1]

Despite being a clearly iron-ore focused mining junior company, some component of the tepid response is linked to the vanadium component.  Vanadium spot prices are going back to historical norms - as it always has, but some people assumed that the high prices in 2018 would continue without really understanding the historical context of the market.  Some of that was fueled by the developing VRB story, but that is not a realized market at this point and unlikely to be for several years yet.

Besides that, the vast majority of junior miners are suffering, and a good portion of companies with producing mines are undervalued.  Everyone acknowledges that will change at some point, as it always does, but nobody really knowns when.

Vone has an extremely promising iron ore deposit that has several positive things going for it. 

1)The iron ore deposit is of higher grade (~65%) and there appears to be a lot of it. China is the #1 importer for iron ore and they are not going to go back to mining the low-grade deposits (<62%) they have so much of in their own country because of the associated pollution. Maybe if the price for the ore is >$140/ton they might consider it, but not anywhere near these levels.

2) Iron ore spot price is increasing and is closer to its historic lows rather than highs - ie. lot of room to move up.

3) They have a management team skilled in acquiring financing which is absolutely critical for a junior.  People discount this for some reason, but having the capability and proven ability to secure VC is crucial for any small company.  They have management that has a proven track securing money to build a mine and a record of building profitable mines.

4) They spend money drilling.  Yes, unlike many hyped juniors Vone management spend their money DRILLING, which is always a good sign and they provide exceptionally detailed reports from their drilling results.

5) ...and oh yeah, they have evidence from their drilling that they will also have access to smelter-friendly vanadium as a secondary resource.

If this was a pure vanadium play, honestly I would be worried.  But it's not, and it's not even the main resource play.  I am extremely excited to see this one mature over the next several years.  It's still a brutally tough environment for juniors right now, but the smart money will pick the winners at these low valuations and have the patience for reaping the rewards when cycles turn.