The vanadium market this year is expected to start moving into surplus, as new capacity is brought on-stream. Watch out for a price surge!

By Cyrus S Darabshaw Exclusive To Vanadium Investing NewsGet ready for a surge in vanadium

In our last dispatch, we had forecast that 2010 would be a much better year for vanadium as compared to the previous year, which was very volatile. In our on-going coverage of this previous metal, we will, of course, be keeping track on whether our prediction does bear fruit or not.

It is our view that in the long-term, too, vanadium is the metal you must invest it, for plenty of reasons (See our previous posts).

So, not surprisingly, the new year got off on the right note. In the first week of January, Asian and European markets have reported an “improvement” in vanadium prices (We told you so).

In a parallel development, there has also been a spike in the price of molybdenum which, according to some analysts could mean a renewed interest in vanadium and niobium prices.

We completely agree with analysts who predict that the vanadium market this year is expected to start moving into surplus, as new capacity is brought on-stream.

The lust for vanadium is driven by the fact that the metal has always and will continue to be a critical component in the making of high-grade steel alloys. It is added for strength in the steel. Of course, vanadium has managed to “re-invent” in its modern-day avatar as a crucial metal in the making of electric batteries, which means it is much sought after buy car and other battery manufacturers for its “green” value.

What makes it even more previous is the fact that pure vanadium is never found in nature, it occurs in 65 minerals and fossil fuel deposits.

Asian markets, between January 4-January7, led by China, one of the main producers of various vanadium products, showed an upward trend.

The Vanadium-nitrogen market remained firm. Market quotes was in the 0.17-0.175 million (yuan) per ton. The ferro vanadium showed slight volatility as manufacturers raised prices, but also a slight recovery in turnover.

So far, ferro vanadium market quoted at 0.105 million yuan per ton, the highest bid reached 0.108 million per ton. Vanadium pentoxide powder and flake prices, on the other hand, so a “nice little” price rise in the above-mentioned period. 98 powder quoting price was in 94,000-96,000 yuan per ton, closing at 95,000 yuan per ton. 99 powder vanadium priced in 98,000-102,000 yuan per ton, not much turnover. And flake priced rose from 92,000-93,000 yuan .

Much of the world’s vanadium is sourced from the vanadium-bearing magnetite. It is found in China, Russia, South Africa, the USA and Canada. Around 60,000 tonnes of vanadium is produced annually in these regions. Of this, 95 per cent is accounted for by South Africa, North West China and Eastern Russia. While China and Russia extract the element from steel smelter slag, the remaining nations produce it either from the flue dust of heavy oil or as a by-product of uranium.

Many experts, at the start of this year, had in a tacit agreement with our prediction, said vanadium, lithium and rare earths are the way in the investing future. Ian Cooper of the Wealth Daily said, “To be honest, if we see real signs of economy recovery, 2010 could be an explosive year for energy… and even metals. With metals, I’m advising my readers to diversify with rare earth, lithium, and vanadium.”

Cooper has even gone to the extent of predicting that investors who buy vanadium today stand to make a fortune in the coming years.

Company news

News agency Reuters reported on January 8 that iron ore explorer African Minerals had signed a deal with China’s CRM to buy a 12.5 per cent stake in the firm for 152.6 million pounds (RMB 2 billion) to develop its flagship project in Sierra Leone. The London-listed firm said on Wednesday the funding from China Railway Materials Commercial Corporation (CRM) would fund the first stage of its Tonkolili project.

Shares in the firm rose 5.5 per cent to 441 pence by 14:50 SA time, after jumping 9.0 per cent on Tuesday, compared to a flat UK mining index.

CRM will subscribe for about 30.5 million new shares at 500 pence each.

African Minerals welcomes the signing of this conditional agreement with CRM, one of China’s large-scale state owned enterprises and one of China’s largest steel trading companies,” said chief executive Alan Watling.

The deal includes a 20-year off take agreement under which CRM will buy between five and eight million tonnes of iron ore annually from the first stage of the mine.

In another vanadium-related news development, shares in Stonehenge Metals (ASX: SHE) spiked 57 per cent after the company entered into an acquisition to acquire 100 per centof Chong Ma Mines Inc  in South Korea from Yellow Sun Mines, early January.

Chong Ma holds the rights to 4 uranium projects comprised of 42 granted mining rights and 14 uranium mining right applications in South Korea.

Executive Director Bruce Lane said the company believed the historical exploration provided a solid foundation to rapidly upgrade the existing historical foreign uranium resource estimates to JORC compliant status ahead of a mining feasibility study.

The acquisition is important for vanadium since the projects also hold significant potential for economic quantities of vanadium and molybdenum and may have a bearing on vanadium supply and prices.

Strategic Resources Inc (TSX VENTURE: UVR) has announced that it had closed a portion of its previously announced non-brokered private placement through the issuance of 2,700,000 units at a price of $0.05 per unit for total gross proceeds to the company of $135,000.

Each unit is comprised of one common share and one common share purchase warrant of the company. Each warrant entitles the holder to purchase one common share of the company at a price of $0.10 per share until January 7, 2012.

The common shares and warrants comprising the units are subject to a hold period that will expire on May 8, 2010. The private placement remains subject to the final approval of the TSX Venture Exchange.

In connection with the closing, the company paid Blackmont Capital Inc a finder’s fee of $800 and issued it an aggregate of 16,000 common share purchase warrants, each of which is exercisable to purchase one common share of the company at a price of $0.10 per share until January 7, 2012.

The funds raised from the offering will be used to advance development of the Corporation’s mineral exploration projects in the USA.

Strategic Resources is a Canadian based junior exploration company with uranium, vanadium and rare earth exploration projects in Catron County, New Mexico, Lincoln County, New Mexico, Apache County, Arizona and Malheur County, Oregon.

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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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