BUY FAR LN – UPDATE: The vanadium market is in deficit until 2024
Good and short article from Stock Heads investing website out of Australia.
The party is set to continue —vanadium supply is likely to remain constrained until 2024, Roskill’s steel alloys principal consultant Erik Sardain told Stockhead.
Link to article: https://bit.ly/3ryhuWL
Ferro-Alloy Resources is our preferred name in the sector.
“FAR” is an emerging Vanadium producer based in Kazakhstan, with a listing on the LSE and a current market cap of approx. GBP 100M.
The reason to own FAR is the Balasausquandiq Vanadium deposit which it plans to develop into the world’s largest and lowest cost Vanadium pentoxide (V2O5) producer. The project is unique for 2 reasons – the size of the deposit and the unique nature of the geology which will make it the largest and cheapest Vanadium producer globally.
Added to that you get to invest alongside Xstrata Founder Mick Davis who holds a 21% stake.
Davis is one of the most widely recognised names within the mining industry.
+35.4% to date. PT GBP 1 leaving a >200% upside.
BUY FAR LN – UPDATE: The vanadium market is in deficit until 2024
Monday • 26 July 2021 • 11:18
Davis said recently that the Glencore merger was his career low “The lowest point, without a doubt, was the ultimate merger or takeover by Glencore of Xstrata. Everything that I built up was essentially snatched away and that was a tough thing to actually deal with,”
Last year Davis also commented about the importance of ESG as a key metric for mining investments. This leads us to believe that Davis will devote a lot of time into this project as he is known as a hardworking and passionate character and is likely to be able to take the Vanadium Redox Flow Battery to the next level.
To put things into perspective Davis has, along with a limited amount of co-investors through his newly created battery commodity/resource-focused investment company taken a 21% stake in FAR for USD 12.6m while Davis’s net worth alone is estimated at > USD 100m.
For Davis to get involved in such a small company he must see the very large upside potential. Post Davis’s investment in FAR the stock popped from 10p all the way to 40p.
One of the company’s main issues has been securing funding to develop the Balasausquandiq Vanadium deposit. With Davis on board we see that funding an imminent.
Placing Creates a Great Opportunity
On Tuesday the CEO of FAR placed 13.3m shares to fund his divorce settlement – this brought his holding down to 14.5%. The COO also sold some share as part of the placing bringing his holding down to 20%. The two signed a 180 day lock up along with a 12 month lock up which will come into force when the Davis investments completes.
The sell-off caused by the recent placing has created an opportunity for investors to get involved in the company at a great price.
Our medium term price target for FAR LN is at GBP 1 leaving a >300% upside.
Blue Sky on unlock of phase 1 deposit on the estimated $2bn NPV is GBP 4, 1500% upside.
BUY FAR LN the next commodity BULL