Why Venus Metals Corporation’s Share Price Jumped Today

At time of writing, shares of Venus Metals Corporation Ltd [ASX:VMC] are up by 25.81%, to 19.5 cents per share.

Why did Venus Metals Corporation share price do this?

Venus Metals Corporation announced a major breakthrough for its Youanmi Vanadium project. Metallurgical test work confirmed strong recovery into solution of V2O5 (battery-grade vanadium) by simple atmospheric sulphuric acid leach testing of oxide vanadium ores. The technique was parred with co-extraction of nickel, copper and cobalt, which could enhance the project economics.

What now for Venus Metals Corporation?

The test results suggests that bulk mining and acid leach processing is an attractive development pathway for initial scoping study work. A 6,000 metre drill program will kick-off soon. The program’s aim is to confirm the metallurgical testing results and provide a large measured resource for the Youanmi Vanadium project.

Vanadium batteries offer multiple benefits in the ‘base-load’ energy storage space, which make them attractive compared to coal and nuclear energy.

Unfortunately, the majority of vanadium is too expensive to extract from the ground using modern-day technology. That will likely change one day. But unlike lithium companies, which offer a reasonable timeline to profitability today, vanadium companies don’t offer near-term production potential.

It costs billions to get the product out of the ground.

That said, Venus Metals Corporation could offer a quicker and cheaper pathway to production. A recent geological review identified a widespread and remarkably even distribution of high vanadium values from surface down to 50 metres below the ground.

That’s pretty shallow.

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The bottom line: Youanmi Vanadium seems appealing for shareholders. But it’s still early days. The company needs to confirm the metallurgical results following the next phase of drilling, upgrade the resource and demonstrate that the project economics are attractive. In that case, while the share price could move higher, we’re optimistically cautious at this stage.

Regards,

Jason Stevenson,
Resources Analyst, For Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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