Optimum V2O5 prices?Clipper2 wrote: ...the vanadium price is holding up well. Recent decline not yet a concern, but worth watching.
| Q4-21 | 2021-10-01 | V2O5 | $8.10 |
| Q4-21 | 2021-10-09 | V2O5 | $8.10 |
| Q4-21 | 2021-10-11 | V2O5 | $7.90 |
| Q4-21 | 2021-10-25 | V2O5 | $8.00 |
| Q4-21 | 2021-11-02 | V2O5 | $7.90 |
| Q4-21 | 2021-11-03 | V2O5 | $7.80 |
| Q4-21 | 2021-11-04 | V2O5 | $7.70 |
Clipper,
Imo, Largo would not really need nor want the average price of V2O5 to go up too high for 2 reasons:
1) If LCE wanted to capture 3% of the VRFB market by 2025, an average V2O5 price below US$9/lb would help its market penetration more than a higher price.
2) The Technical Report indicates that to generate an after-tax NPV of US$2B the mining operations only need a weighted average price of US$8.80/lb inclusive of High Purity V2O5 premium. Considering the fact that HP premium = US$1.5 - 2.5/lb above the standard V2O5 they only need the average V2O5 spot price to be around US$6.3 - 7.3/lb to get the US$2B NPV.
"Technical report indicates $2.8-billion pretax NPV (net present value) with 7-per-cent discount rate/$2-billion after-tax NPV with 7-per-cent discount rate for Largo's mining operations, using weighted average price of $8.80 per pound (lb) vanadium pentoxide (inclusive of high-purity V2O5 premium)..."