RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Winning From Higher Vanadium Priceskha341 wrote:
With all due respect I don't agree with the following message in your original post. Do you stand behind it or not?
"When V prices are low leasing looks very good for both Largo and the utilities companies (might look better from a Largo's point of view)....When V prices are high, Largo might be better off selling into the market to make a profit right away"
Yes.
There are two sides to leasing, Largo's and the leasing company.
When prices are high
Largo's side:
- is able to make a large profit by selling directly to the market
- is willing to lease V electrolite as long as the price(see the 3 components that go into price in previous post) it will receive is comparable to the price is able to receive directly fromthe market
- continues to generate income from V that has been leased in previous years
- is able to generate new leases only if there are companies willing to lease at current lease price/conditions
- could be willing to lease at a lower price to retain/gain customers - economically does not make sense
Leasing company side:
- also looking for an energy solution that makes economic sense
- is willing to lease V as long as the leasing price makes sense otherwise it won'tsign a lease (it won't either buy V in the market)
Let me know if you don't agree with any of the above statements and why