Explorer Continues Work on Vanadium Project in Nevada

Source: Peter Epstein for Streetwise Reports   07/06/2019

In this exclusive interview, CEO Paul Cowley of First Vanadium discusses the vanadium market and his company’s prospects with Peter Epstein of Epstein Research.

First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQB) has been under pressure, along with hundreds of battery metal juniors and the underlying metals, including vanadium, cobalt and lithium. Even vanadium giant Largo Resources Ltd. (LGO:TSX) is down 61% from its 52-week high. Yet, if one believes in vanadium, it’s hard to ignore First Vanadium’s shares at CA$0.44, down 78%! The pro forma enterprise value (market cap + debt – cash) is just US$12.8M. The company has CA$1.9M in cash.

Yet, even at current vanadium pentoxide (V2O5) prices, the in-situ value of the Indicated-only portion (303 million pounds) of the company’s estimated resource is ~US$2.5 billion. Management believes it has the largest high-grade primary vanadium resource in North America.

There has been a lot of weeping and gnashing of teeth over the V2O5 (China) price falling from a 2019 high of US$17.6 to its current US$8.2 per pound. But, as the saying goes, the cure to low prices is. . .low prices. Few new projects make sense at today’s levels. I believe that V2O5 (China) between US$10–US$15 per pound might be a sweet spot, good for both producers and end users.

( Companies Mentioned: FVAN:TSX.V; FVANF:OTCQB, )