As we cover and analyze companies benefitting from the battery boom, it seems all eyes are on lithium and cobalt stocks. However, there’s plenty of overlooked opportunity in Vanadium, which is benefitting from a boom in demand for vanadium redox flow batteries.
Our research and due diligence indicates the following company: Stina Resources Ltd (OTC: STNUF / CSE: SQA), a junior resource company with vertical integration ambitions, from mine to battery, that’s primed for a major vanadium breakthrough in Nevada.
The time of overlooked metal Vanadium being overshadowed by lithium and cobalt will likely be coming to an end very soon. The metal’s role in storing energy for the renewable energy revolution will soon be critical in the storage technology sector— giving rise to pure-play vanadium miners and the profits they’ll inspire.
In its “Energy storage forecast 2016-2030”, Bloomberg New Energy Finance predicts explosive energy-storage growth over the next 12 years—a six-fold increase in energy storage to 305 gigawatt-hours by 2030. But to get there will require an investment in excess of $100 billion.
So where does vanadium fit into all this?
Vanadium is an energy option worth watching closely, because it’s critical to a promising storage technology called vanadium redox flow batteries (VRB).
Compared to lithium-ion batteries?, VRBs are non-flammable, environmentally friendly, and have much, much longer life-spans—they last more than 10,000 cycles, and maintain 90% of their capacity over 20 years.
With those advantages, VRBs have the energy sector’s full attention.
South Africa’s power utility Eskom is currently set to test a vanadium redox flow battery (VRFB) solution.
The Chinese government has strategically pushed for large flow battery projects, currently through a project demonstrating the integration of energy storage onto grid networks in Hubei, China. The first phase is a demonstration of a 3MW-12MWh VRB in Zaoyang, Hubei Province.
This is expected to lead to an enormous follow-up in the form of a 100MW-500MWh energy storage system expected to “be the cornerstone f a new smart energy grid.”
In the United States, pushes for green energy and energy storage across many states (including California) has led to 59 VRB installations across the country.
But since these projects require large amounts of ultra-pure vanadium, there is a gigantic opportunity for investors to make gains before the full-scale rollout occurs in major population centers around the world.
Vanadium is already SIGNIFICANTLY Up — More than 100% Gain This Year!
Vanadium has already more than doubled in price over the last year. Driven by booming demand from Asia, and a very tight raw material supply, vanadium has in quite a roll.
For the Chinese market alone, prices for V2O5 have hit $9.10-9.30 per lb—the equivalent of $20,061-$20,517 per tonne.
NOTE: Chinese prices are most relevant, as major development of clean energy storage is happening in China faster than any other country. Construction of a 3MW-12MWh vanadium flow battery as part of a 10MW-40MWh storage integration demonstration project is already underway.
Companies that can provide ultra-pure vanadium to a market starved for only the purest supplies stand to benefit in the coming years.
Because of the rapid push by the Chinese government, as well as other governments around the world, we see the vanadium market as set to take off—and in turn, so too are vanadium stocks.
SEE OUR RECOMMENDATION (Stina Resources).
Pure-Play Vanadium Plays Are Rare FOR NOW — Major Gains Available for Those Ahead of the Crowd
Currently the selection of companies who have a significant vanadium asset or production to speak of are not chasing vanadium on its own.
We’ve looked at companies such as Largo Resources, Syrah Resources, Glencore, and Energy Fuels.
Largo Resources (OTC: LGORF) (TSX: LGO) comes the closest to being a major with a vanadium interest near the top of its focus, with a market cap near $400 million. But their focus also includes iron, tungsten, molybdenum, chromite, palladium, and platinum group metals among its portfolio.
At over $65 billion market cap, Glencore (OTC: GLNCF) is by far the largest of the bunch. However, vanadium isn’t even close to the mining giant’s focus, despite acquiring a vanadium mine in recent years.
In fact, Glencore’s vanadium production shortfalls have in fact further boosted vanadium prices for the rest of the market.
Through our research, we’ve been alarmed at how few pure-play vanadium players there are out there. However, we’re happy to proclaim that we’ve found one company (Stina Resources) worthy of our recommendation, with all the markers for success in the upcoming vanadium boom the market hasn’t woken up to… yet.
Not only has this company strategically acquired a significant pure-play vanadium asset in mining-friendly Nevada, but it has aligned itself with partners involved with the development of important vanadium redox flow battery (VRBF) technology.
We believe that this combination of foresight in not only the vanadium supply space, and in the vanadium technology and demand space, leads us to confidently endorse a junior resource company with a strategy above all others when it comes to vanadium: Stina Resources Ltd.
Stina Resources Ltd Amassed TWO Large High-Grade, Pure-Play Nevada Vanadium Properties
There are few mining districts around the world as friendly to miners and businesses as Nevada. So when Stina Resources’ management team combined their Bisoni McKay (BMK) and Bisoni-Rio prospects, they instantly positioned the company as a major upcoming player in the vanadium space.
Past exploration on the BMK was done in the 1950s, 1970s, and 1980s, all ahead of today’s burgeoning vanadium boom.
Last year, the BMK project received an NI 43-101 Indicated Resource estimated at 11,879,590 tons, at an average grade of 0.39% V2O5 and Inferred Resource estimated at 7,048,056 tons at an average grade of 0.42% V2O5.
And though 54 exploration drill holes (16,501 feet) have been drilled, over 90% of the BMK is yet to be explored. So far the prospect is open at depth, known to extend to the North and South, with at least 300 feet of true thickness in depth with 2,000 feet strike length—close to surface, and open-pittable.
But the key feature that stands out the most, is the property contains significant vanadium carbonaceous resources that allow for high levels of vanadium electrolyte purity.
This is significant, because VRBs require ultra-pure vanadium. Today, most of the world’s vanadium supply comes as a secondary product from mining other metals such as iron, or uranium.
Stina’s BMK property has a very good shot at being one of the purest vanadium supplies on the market.
And just to the north of BMK is Bisoni McKay, covering 3,360 acres of prospective ground. The property covers the connecting ground between the BMK and the Gibellini Project—a project with resources Measured & Indicated of 23 Million tons @ 0.29% V2O5, which is 131 million pounds V2O5, and Inferred 22 million tons @ 0.21% V2O5, which is 91 million pounds V2O5.
Past trench exploration has already suggested that mineralization extends through from the BMK project through Bisoni McKay.
THIS IS RARE!
Vanadium occurs in complex mineral associations and fossil fuel deposits, and often produced as a by-product of uranium mining and other mineral mining. However, for Stina, they’ve strategically acquired vanadium property that provides the metal in one of its rarest forms—pure vanadium.
The FUTURE is NOW — Vanadium Redox Flow Batteries are HERE!
While 90% of vanadium today is used in steel production (making steel lighter, and adding other beneficial properties), the demand coming from VRBs will be very significant, very soon.
And the supply of pure vanadium is going to need to come from somewhere.
Currently, 95% of vanadium production comes from China, Russia, and South Africa—with significant vanadium production coming as a by-product of industrial processes.
There are currently NO North American vanadium mines currently in production.
However, the shift towards new energy storage projects inside the US is going to presumably catch the vanadium market off guard.
According to the US Energy Storage Monitor Report from Q2 2017, growth in the energy storage space is going to be massive—and the signs are already here.
In Q1 2017, US deployments in megawatts for energy storage were up 276% over prior year.
During the same period, deployments in megawatt-hours were up 944% over prior year.
By 2022, the US energy storage market is expected to be worth $3.2 billion—that’s a 10X increase from 2016.
And the growth isn’t looking to stop any time soon.
In the state of California, all utilities are now mandated to include energy storage in all new projects.
Given its much longer life, and better long-term return on investment, vanadium redox flow batteries (VRFBs) are going to be highly sought after by initiative-led, large-scale power generation sites.
Over 5 vanadium VRFBs have been installed across America, Europe, Asia, Africa, and Australia—and next generation models are being developed by Stina’s technological partners the Pacific Northwest National Laboratory (PNNL), and the University of Calgary.
Because vanadium batteries are stackable, their allure for growing markets is heightened, compared to lithium batteries hemmed in by their original design limitations.
Stina has seen this market way ahead of its peers, and is working to perfect its methods to convert vanadium into vanadium electrolyte for the energy storage market.
Any public works officer involved in planning a major project will see the advantage of VRBs being non-flammable, environmentally friendly, and having lifespans in excess of 10,000 cycles and maintaining 90% of their capacity over 20 years.
In comparison, just getting 1,000 cycles of use out of a lithium-ion battery with full depth of discharge is wishful thinking.
VRBs are practically built for the grid-constrained power generation methods, such as solar and wind-farms hindered in selling their electricity at times of peak production, which find other forms of storage uneconomic.
Compared to lithium-ion batteries, VRBs also can boast longer continuous discharge run times of 6-10 hours versus lithium-ion’s 2-5 hours.
But vanadium and lithium aren’t totally in competition with each other. In development already are lithium-vanadium phosphate batteries which are rumoured to have potential electric vehicle (EV) applications.
By aligning with technological partners PNNL and the UofC, and securing a vanadium-asset package that looks to be one of the best up and coming pure-play vanadium projects in the world, Stina Resources has positioned itself to be a primary player in the undervalued vanadium space.
The Vanadium Space is Set to Take Off, with Few Pure-Play Players in the Mix, but Plenty of Mining Giants Involved – See Our Recommendation
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FEATURE STOCK: FOR COMPARISON
Stina Resources
OTC: STNUF // CSE: SQE
Market Cap: $16.35 million
Stina Resources is a Junior Canadian Exploration Company incorporated in 1986 engaged in the acquisition, exploration and development of mineral resource properties, in particular vanadium, properties in Canada and the United States.
Pure-Play Vanadium Comparables: In Different Stages, But Worthwhile to Study
These stocks represent some of the leading players in the vanadium sector, all of which have benefitted in some way from the rise in price of vanadium. Not all are pure-play vanadium companies, but they are examples of just how successful the vanadium market already is.
Largo Resources
(OTC: LGORF) (TSX: LGO)
Market Cap: $393.87 million (CAD$515 million)
Largo Resources is a natural resource development and exploration company, headquartered in Toronto, Canada, primarily exploring vanadium, iron, tungsten, molybdenum, chromite, palladium, and platinum group metals.
Recent Headline: LARGO HAS RECORD QUARTERLY PRODUCTION OF 2513 TONNES OF VANADIUM PENTOXIDE IN Q3, BEING 4.7% ABOVE NAMEPLATE CAPACITY
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Syrah Resources
(OTC: SYAAF)
Market Cap: $1.086 billion
Headquartered in Melbourne, Australia, Syrah Resources engages in the exploration, evaluation, and development of mineral properties in Mozambique. Its flagship project is the Balama Graphite and Vanadium project located in Mozambique.
Recent Headline: SYRAH ANNOUNCES FIRST PRODUCTION
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Glencore Plc
OTC: GLCNF
Market Cap: $65.881 billion
Founded in 1974, and headquartered in Baar, Switzerland, Glencore engages in the production, refinement, processing, storage, transport, and marketing of commodities worldwide.
Recent Headline: Glencore cut in vanadium output continues to push prices higher
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Energy Fuels Inc.
NYSE: UUUU // TSX: EFR
Market Cap: $129.23 million
Based in Lakewood, Colorado, Energy Fuels engages in the extraction, recovery, and sale of both uranium and vanadium in the United states.
Recent Headline: Energy Fuels Announces Q3-2017 Results, Including $32.7 Million of Working Capital
Our Recommendation: Stina Resources Gets Our Strongest BUY Rating
Now that you’ve read this far, you’re already ahead of most of the market still yet to wake up to the massive potential in vanadium. We believe not only that vanadium has what it takes to catch up with the other battery metals, such as lithium and cobalt, but that Stina Resources is the stand out favourite in the space.
The fact is, Stina Resources has done everything right so far, to be THE player in the vanadium space ahead of all others. They have combined the BMK and Bisoni-Rio projects into a very significant vanadium corridor in one of the most mining-friendly jurisdictions on the planet, Nevada.
On top of their mining assets, Stina has aligned with braintrusts working on developing the world’s next top energy storage options through extensive VRB research.
We like this foresight, and aims for vertical integration—A LOT.
With what looks to be an open-pittable project in the future, and an already-impressive 43-101 resource compiled on data that’s so far only really scratched the surface, we believe Stina’s Nevada vanadium assets have potential to become world renowned.
This stock shows all the signs of being a premier vanadium producer, with a smooth timeline to advance their vanadium interests, and be in production in the not-so-distant future. Here’s what stands out for us for STNUF/SQA:
- Large high-grade, pure-play vanadium deposit in mining-friendly Nevada.
- Great timing at the early stage of a significant vanadium run, while vanadium supply isn’t even close to catching up to surging demand.
- High grades on BMK are so far higher than nearby Gibellini Project to the north, which has a resource of 131 million lbs V2O5.
- Secured the corridor stretching from BMK to Gibellini with acquisition of Bison-Rio property spanning 164 claims and 3,360 acres of prospective ground, offering yet more blue sky.
- Vanadium is rarely found in pure form, yet a pure-form vanadium asset is what Stina is targeting.
- Continuity of mineralization has been confirmed, meaning the resource has plenty of room to grow, and the sky’s the limit.
- Strategic partnerships with PNNL and University of Calgary to further improve vanadium redox battery technology, thus proactively working to improve future vanadium demand.
If we were to describe the ideal way to approach the coming vanadium boom, we’d lay out all that Stina has done so far. They seem to be two-steps ahead of the curve, which speaks to the minds inside the management team.
Stina has lined itself up to be THE vanadium player of the future.
Our recommendation is to seek a position now, before the market figures out that vanadium is the next lithium or cobalt. Consider Stina Resources (OTC: STNUF // CSE: SQA) at this current stage, while it’s still in the pre-development stage.
Stay up-to-date on the company’s news and advances as they break, by joining their email list at https://stinaresourcesltd.com.
Keep in mind that there are several others who may have already gotten access to vanadium through companies like Largo Resources, Syrah Resources, Glencore, and Energy Fuels. However, most of those companies aren’t focused on vanadium, as it’s a by-product of their other operations.
As well, they’re all operating with market caps currently 10x or more than that of Stina Resources, thus not having the current HUGE gain potential still afforded to Stina. The sky above Stina is a much brighter shade of blue.
It’s our belief that early investors who take a chance on companies positioning themselves for vanadium’s big breakout will experience the biggest gains.
** Important Note **
Stina Resources has most recently acquired the assets of Austrian energy storage entity Gildemeister Energy Storage GmbH, as well as Pure Vanadium Corp.—both of which support Stina’s long-term objective of becoming North America’s first vertically-integrated producer of vanadium electrolyte for the energy storage industry.
Brian Stecyk, President and CEO of Stina Resources is quoted as saying:
“The development of battery technology is progressing rapidly throughout the world with vanadium redox flow batteries being one of the main new technologies for grid-scale energy storage. The combination of our vanadium resources in Nevada and new applications for vanadium in battery technology will progress Stina towards its goal of being a leading vertically integrated producer of vanadium electrolyte.”
Pure Vanadium is a technology company involved in developing vanadium electrolyte for vanadium redox flow batteries used in grid-scale energy storage. Pure holds a portfolio of licenses for the production and sales of vanadium electrolytes, further adding to Stina’s case for full vertical integration.
We believe this is a winning strategy, that’s unique and innovative in a space that will soon spawn many copycats. But only Stina Resources will lead the pack, and become THE VANADIUM STOCK TO OWN.
American News Group
Editorial Staff
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