RE:PURCHASING VANADIUMBullsprig57 wrote: Are we selling 100% of our production and having to purchase vanadium from the outside to meet contracts? I didn't understand that part of the call that discussed we making less margin on purchased product.
I agree. It’s counter to my common-sense expectation.I know that Maracas produces the highest grade vanadium in the world but I also notice the following:
1) We have to sell our high grade V2O5 products not only as standard grade V2O5 but often at a discount to the standard spot prices.
2) Our product mix comprises V2O5 + High Purity + FeV and yet the sales prices per pound of our “V2O5 equivalent” are lower than the Euro V2O5 price (Q average). Perhaps the cheaper Chinese V2O5 price is more representative. Perhaps we don’t sell as much High Purity as we like. Who knows
3) We have to buy lower grade vanadium from the market to meet the demand from our customers.