World steel production is firming up, after a dismal performance in 2009. This can only mean good news for vanadium producers.

By Cyrus S Darabshaw Exclusive To Vanadium Investing NewsSteel & vanadium touch new heights

This week, there was more cheer for vanadium investors, albeit through the back door. Steel production in the world has started showing growth. This is positive news for vanadium.

Already, the price of ferrovanadium and other vanadium-based offshoots in the European markets has been steadily increasing from the first day of 2010. Those who have been following vanadium know how crucial the steel sector is for this minor metal. Vanadium is added to steel to give it strength.

Select applications include vanadium steels for high-speed usage, vanadium steels in electric power generating units to facilitate cost-effective power generation and vanadium redox flow battery for large scale energy storage systems. Vanadium alloys are used for compressors of aero-engine gas turbines and vanadium high carbon grey cast irons for drums and brake discs. Riding on this renewed global demand for steel and vanadium, many analysts and research institutes have put out changed outlooks for the year to come.

Not only that, but even steel producers and vanadium mining companies have projected a better year for this sector. One such has come in from Crosshair, a dominant player in the exploration and development of uranium and gold in the US and Canada. Its flagship project, Bootheel, is located in uranium mining friendly Wyoming and with its in-situ mining potential.

This is what Stewart Wallis, president of Crosshair, had to say last week, “We are pleased to have consistently good results from our vanadium program. We are well on our way to significantly increasing our vanadium resource with the grades being encountered, as they are above our projected cut-off for the upcoming resource estimate.”

Crosshair’s vanadium resource expansion program has been planned with the goal of adding significant pounds of vanadium to the existing vanadium resource without further drilling. Given the fact that the previous drill programs on the CMB project focused exclusively on uranium, most holes were only sampled where uranium was encountered.

For this reason, approximately 4,000 metres of existing core needs to be sampled and assayed for vanadium, the company feels. The CMB Uranium/Vanadium Project is located in Labrador, Canada, and has four currently defined resources – C Zone, Area 1, Armstrong and Two Time Zone. Complete vanadium assay highlights are posted on the Crosshair website.

One of the countries that is reporting a gradual increase in steel production is South Africa. All Africa.com reported last week that SA’s steel industry looks set to benefit from the gradual recovery of the economy.

Credit insurer Coface SA steel analyst Justin Jacobs said although steel output dropped 16 per cent to 6,7-million tons last year compared to 8-million tons in 2008, the industry could look forward to a marginal rise this year. Although some companies were forced to downsize operations and implement survival strategies, they still managed to hold their own, he said.

All indicators point towards a recovery in the steel price this year, based on projected price increases in the raw materials used in its manufacture, electricity price increases, and an expected increase in demand for steel from the manufacturing sector. A global iron-ore price settlement, 10 per cent up on current prices, was expected from price negotiations between the major suppliers and consumers in the near future .

“There are already indications of stockpiling taking place by major steel manufacturers in anticipation of this year’s price increases,” Jacobs said.

Company news

Panzhihua New Steel & Vanadium Co Ltd posted a continuous growth for several days since January 2010 and was closed by 1.12 per cent at CNY 8.16 per share recently. Why is this significant?

Because the company eyed a full year profit loss of CNY 1 billion in 2009. In 2008, the company operating incomes stood at CNY 52.4 billion while declining to CNY 4.19 billion in 2009. Besides, it has successfully trial-produced 60D40 high speed railway track in H2 of 2009. And it also carried out products mix and strategy adjustments during the same periods.

Market analysts believed that Panzhihua New Steel & Vanadium has showed a sign of recover in the sector of annual performances.

Continental Precious Minerals Inc (TSX: CZQ) has announced that it had received preliminary bench scale metallurgical results from Alum Shale core samples taken at the company’s 100 per cent owned multi-metal sediment deposit located on the Viken and adjacent licences in Sweden. Bench scale metallurgical studies were conducted on core samples by Process Research Inc (ORTECH) of Mississauga, Ontario, a leader in extractive metallurgy and process technology.

After completing a combination of different leaching and roasting tests (47 in total) ORTECH was able to report test results indicating potential recoveries of approximately 90 percent for uranium, approximately 90 percent for molybdenum and about 70 percent for vanadium. “These metallurgical results are an excellent start which demonstrate that Continental’s MMS Viken deposit is not only of significant size, but that we have the potential for significant recovery of three valuable metals from the deposit”, stated Ed Godin, president and CEO.

Noront Resources Ltd (TSX Venture: NOT), a company focused on significant and multiple, high-grade nickel-copper-platinum-palladium, chromite, gold and vanadium discoveries in an area known as the “Ring of Fire”, an emerging multi-metals district located in the James Bay Lowlands of Ontario, Canada, has announced that it supported the actions of the Marten Falls First Nation (”MFFN”) at the Ring of Fire, located in the James Bay Lowlands.

MFFN had earlier announced that it was implementing a logistics halt, which will deny companies operating in the Ring of Fire, access to the ice landing strip at Kopper Lake. MFFN indicated that this denial of service, which MFFN undertook with the support of other communities in the area, would be in place for an indefinite period.

Noront said its policy from the beginning was to actively work with and communicate with the First Nations communities impacted by the company’s exploration activity in the Ring of Fire. Noront has been actively canvassing the local First Nations communities and the provincial government to initiate round table negotiations between industry, First Nations leaders and provincial government ministries to establish a long- term, viable development plan that brings the maximum benefit to most people of this mineral district.

Tangshan Iron & Steel Co Ltd, the listed subsidiary of Hebei Iron & Steel Group, announced that it was to restart its stock deal on January 25 after completing taking in Handan Iron & Steel Co Ltd and Chengde Xinxin Vanadium & Titanium Co Ltd and changing its name into Hebei Iron & Steel Co Ltd.

Hebei Iron & Steel Group, the dominate shareholder of Tangshan Iron & Steel Co Ltd, has promised to inject the assets of its four subsidiaries into Tangshan Steel in three years.

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Update On ESG Technology Development

Vanadium Resources Ltd ("the Company" or "VR8"), is pleased to provide an update on its ESG technology acquisition. Following the acquisition of an integrated ESG processing technology (Refer ASX announcement 1 April 2021: VR8 to acquire integrated ESG processing technology by way of an earn-in JV, and capital raising), the JV company (TCM-VR) has successfully been registered in the Republic of Ireland (reg no 699830). This forms part of the earn in agreement, whereby the Company can acquire up to a 74% interest in an ESG integrated extraction, processing, refining and manufacturing technology developed by TCM Research Ltd (TCM), that innovatively utilises existing processing methodologies to produce battery grade Vanadium Pentoxide and high-end Vanadium products, including other products arising from the Steelpoortdrift Ore such as Iron, Titanium, Silicon and Aluminium, which are not currently extracted using conventional processing methods.

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VR8:AU
All amounts expressed are in U.S. dollars, denominated by “$”. Q3 2021 and Other Significant Highlights Net income of $9.2 million, a 261% increase over Q3 2020; Basic earnings per share of $0.14 Revenues of $53.9 million, 96% higher than Q3 2020; Revenues per lb sold 1 of $9.10, a 69% increase over Q3 2020 Cash balance of $87.6 million exiting Q3 2021 Battery Development Funding: Largo Clean Energy selected to ...

All amounts expressed are in U.S. dollars, denominated by "$". Q3 2021 and Other Significant Highlights

  • Net income of $9.2 million, a 261% increase over Q3 2020; Basic earnings per share of $0.14
  • Revenues of $53.9 million, 96% higher than Q3 2020; Revenues per lb sold 1 of $9.10, a 69% increase over Q3 2020
  • Cash balance of $87.6 million exiting Q3 2021
  • Battery Development Funding: Largo Clean Energy ("LCE") selected to receive $4.2 million in funding from the U.S. Department of Energy ("DOE") to scale up U.S.-based manufacturing of flow battery and long duration storage systems
  • First Battery Sales Contract: On July 20, 2021, LCE entered into its first VCHARGE vanadium redox flow battery ("VRFB") sales contract with Enel Green Power España ("Enel"); LCE will deliver a 5 hour, 6.1 MWh VCHARGE system for a project in Spain and received a Notice to Proceed on July 30, 2021
  • 2020 Sustainability Report Released: Significant progress made on environmental, social and governance priorities in furthering the Company and vanadium's role in the global green economy
  • Total V 2 O 5 equivalent sales of 2,685 tonnes, a 16% increase over Q3 2020
  • Production of 3,260 tonnes (7.2 million lbs 2 ) of V 2 O 5 , a 5% increase over Q3 2020
  • Cash operating costs excluding royalties 1 of $3.53 per lb of V 2 O 5 vs. $3.14 per lb in Q3 2020
  • Solid Vanadium Demand: Average Fastmarkets European V 2 O 5 price of approximately $9.40 per lb in Q3 2021, a 76% increase over the average in Q3 2020
  • Corporate Name Change and Rebrand: In line with the Company's Board approved strategy to vertically integrate is foundational mining business and growing energy storage division, Largo announced that it has changed its name from Largo Resources Ltd. to Largo Inc.
  • Pre-Feasibility Study Results Released: On November 3 rd , 2021, the Company announced its technical report results outlining a significant expansion of V 2 O 5 production and reserves supported by new cash flow generation from titanium dioxide ("TiO 2 ") pigment co-product sales. The result is a 20-year mine life and a $2.0 Billion after-tax NPV 7% for the Maracás Menchen Mine
  • 2021 Production and Sales Guidance: Production guidance of 11,400 to 11,800 tonnes of V 2 O 5 equivalent; Sales guidance of 11,200 to 11,800 tonnes of V 2 O 5
  • UPDATED: The Company will host a webcast and conference call for its Q3 2021 results on Thursday, November 11th at 10:00 a.m. ET

Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today announces its third quarter 2021 financial results highlighted by revenues of $53.9 million and net income of $9.2 million. The Company recently announced results of a pre-feasibility study which forecasts materially increased profitability through enhanced access to vanadium and achieved important milestones in the development of its vanadium-based energy storage business.

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Largo Inc. is pleased to announce that it has completed a rebranding exercise to reflect the growth and diversification of its business. As part of this initiative, Largo has effective as of today, amended its articles in accordance with the Business Corporations Act to change its name from Largo Resources Ltd. to Largo Inc., updated its corporate logos and refreshed its corporate website to integrate its Largo ...

Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) is pleased to announce that it has completed a rebranding exercise to reflect the growth and diversification of its business. As part of this initiative, Largo has effective as of today, amended its articles in accordance with the Business Corporations Act (Ontario) to change its name from Largo Resources Ltd. to Largo Inc., updated its corporate logos and refreshed its corporate website to integrate its Largo Clean Energy business and become more than just a mining company. Largo remains focused on delivering high-quality, sustainable and innovative vanadium focused energy storage products along side its existing high quality vanadium products.

The Company's common shares are expected to begin trading on the Toronto Stock Exchange and the Nasdaq Stock Market under the new name at market open on or around November 10, 2021.

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Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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