OK. This is an interesting little resource play but there are pros and cons. It's a nice story and shares are currently trading around 2 cents Australian ( $ 0.015 US). The company has been on an equity financed spending spree and has run up about a billion shares. That gives us a current market cap of around $15 million, right?
On the other hand, the assets they've acquired seem likely to prove out to provide future value to justify it.
There are signs that the bear market for resource stocks may be easing. I'm making a guess here that Vanadium Redox batteries may finally start to catch on as a preferred energy storage medium for land based solar. Solar is getting economically feasible due to advances in manufacturing technology. Wind needs reliable storage as well. The compactness of lithium isn't needed for fixed installations and lithium batteries wear out after a few years. Vanadium redox batteries have liquid electrodes that don't wear out and stay functional for 20+ years. They're also easily scalable, to increase capacity you just add more electrolyte / tanks. The electrolyte also changes color when it's charged which is handy for monitoring. Much safer, fire hazard wise than lithium, simpler. Quite a list of advantages.
The funny thing is, a few years ago, there was a company called American Vanadium with an almost identical story. They just went bankrupt recently. Certain conditions are different now and the timing seems more favorable. So, these guys may do better. They have their foot in the door as a Vanadium battery reseller - the Australian outback looks to be a good market. Supposedly, they've made a sale and have 70 more prospects lined up. If they can get revenues going that way hopefully they won't go broke.
They plan on using their high quality vanadium to make and market vanadium electrolyte. Then make batteries.
I'm not too happy about their wild and crazy lithium/tantalum acquisition but it could turn out to be a bargain if it doesn't put them under. Tantalum is useful and rare to begin with. A leading tantalum producer just had a fire, likely reducing production by 50% for the next year. Normally, brine is more economical for lithium but the hard rock deposits in question look to be very rich grade, so, hard to say. Maybe not a completely reckless move...
It's a somewhat dicey gamble but I plan on trying to open a small position at these prices just to see what happens. It gives one an excuse to keep watching it.
Currently it's listed but not trading (0.00 bid/ask). Maybe stirring up a little interest here will wake up the Market Maker. Here again, I would caution buying a stock like this. I wouldn't risk more than a couple hundred bucks or so, money you figure that you could afford to lose if things don't pan out.
