RE:RE:RE:Euro V2O5 below US$5/lb“And on the downside, again, history would tell us that the price in the last 15 years, we have seen prices just below $3. And that's an environment where everybody is losing money”
LV: If average production costs were around $3.1 CDN back in 2015, we could expect, through additional optimization initiatives, that such cost (to produce) is a good dimes below $3.00 – perhaps $2.75 (say). That still gives us room should we walk – sideways – on the floor and not immediately spike back. I’m hoping that Largo, who knows and understands this very well, is putting a strong emphasis at on premium specialty markets … requiring high purity V2O5… were margins make most sense. Being lowest cost producer of highest grade vanadium will certainly come in handy should V prices further deteriorate.
BTW, cannot wait for prices to stabilize in higher $12-15 range… how grand will that be … BUT, back in reality, we may have to endure some trepidations until then.
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Perles' last point : “So I don't have any concerns about Largo being able to go to the market directly.”
LV: when Perles stated this at the end of his discourse it would have been under the understanding that Largo is a force to be reckoned with in the V space ( known and respected) in other words 'the foot is in the door'. --> good for us !
That said, I would hope that that the director of sales (Vollant – an alloy expert ;; ie., alumn+V, titanium+V) and D’Alessio as head of sales can go to market and sell ‘direct’ as Perles suggested Largo could.
I think I hope that PVollant, who knows Perles well, does not jump to his side at US V… Any ideas out there??
Am confident about Largo ! BUT certainly do require clarifications and precisions wrt all of this at the forthcoming conf call
Appreciate your valued information / LV