VML - Vital Metals

[barney]

Gee @barney , haven't you heard?
Steak is the new "unobtanium" due to inflation, unless you call roadkill "steak" ?
(Best to collect ya roadkill early before the sun and flies and spraypaint git it...? )

As always Rock, you have taken my knowledge base to a new level.

Who would have known that Unobtanium is actually a word.

It sounds suspiciously like a modern disease (predominantly in young men ) caused by too much nude sun bathing!



My obvious lack of linguistic comprehension aside, VML VWAP finished the day at 058 --ish.

Pessimistically I could suggest that the "Traders" are searching for more buyers to sell into (in the short/very short term),

But given the VWAP, I'd suggest, they are also happy to accumulate at just a couple of points lower (in the short term)

Therefore price wise, I think, short term neutral, but medium term positive .... all good in my opinion till proven otherwise


Rock-on !

 

[frugal.rock]

Unobtainium - Wikipedia

en.m.wikipedia.org

 

[Dona Ferentes]

Unobtainium - Wikipedia

en.m.wikipedia.org

Didn't go for the American spelling?

An alternative spelling, unobtanium, is sometimes used, perhaps based more closely on the spelling of actual metals like titanium and uranium

 

[waterbottle]

Some good price action today. Looks like it's involving a couple of rare earth miners (see ARU). Will be interested to see their plan for Nechalacho which now supposedly contains HREEs...

 

[barney]

Bit of action at the station this morning.

Interest free loan of $5 million from the Canadian Government $5 million Loan

Hopefully the 061 level will get locked in as Support from here on.

A Close 063 or higher on Volume would be a good start

 

[frugal.rock]

The current run actually looks like the most sustainable run its had over a yearly chart....

What time are you firing up the BBQ @barney ?
?
Scotch fillet, chicken sausages & rissoles might be in order? ?

 

[waterbottle]

Nice work lads, glad I bought back in

 

[frugal.rock]

Volumes looking good.
Inside day today.
If ree is in flavour tomorrow, could see a close above the 7.0 mark ?
Beef wellingtons and Fillet mignon would be on order then please Mr @barney ??

 

[barney]

Hopefully the 061 level will get locked in as Support from here on.

A Close 063 or higher on Volume would be a good start

The current run was nice but it was looking a bit hot so the customary profit taking (and possibly a little loss taking for the late buyers into the 07's unfortunately)

We cracked the 060 egg very easily so that 061 Support looks solid (maybe even 063 given the Volume profile of the last couple of moves.

Plenty more waves to ride with this little battler, but having the backing of the Canadian Government is a big plus.

VML got their early slice of the Gov support with the interest free $5 million. Probably safe to say, if we need more in the future, the Gov will be happy to oblige. Certainly a bonus for shareholders with limited dilution/cap raises.

 

[frugal.rock]

If ree is in flavour tomorrow, could see a close above the 7.0 mark

REE not in favour today.
Out of a watchlist of 25 REE stocks,
76% of them down an average of 5.6%,
16% flat,
8% of them up an average of 4.6%

One could say, VML had an above average day. ?

 

[barney]

Trading Halt till 10.15am

Probably to announce the German MV Company Shaeffler just signed a supply deal with ReeTec.

As we know, ReeTec and VML are in a healthy partnership arrangement.

Pre-Market is showing only modest signs of excitement at his stage.

 

[Austwide]

Trading Halt till 10.15am

Probably to announce the German MV Company Shaeffler just signed a supply deal with ReeTec.

As we know, ReeTec and VML are in a healthy partnership arrangement.

Pre-Market is showing only modest signs of excitement at his stage.

Request for Trading Halt Vital Metals Limited (Vital or the Company) hereby requests a trading halt under Listing Rule 17.1 from the ASX effective immediately, pending an announcement to update the market on Vital’s offtake arrangements and clarify a news article released by Reuters titled “EV parts maker Schaeffler signs first of a kind European rare earth deal” concerning the Company’s Offtake partner, REEtec.

The trading halt is requested until the earlier of the release of an announcement regarding the above or prior to the commencement of trading on Friday, 22 April 2022.

 

[waterbottle]

This could be big. Eagerly awaiting the news here...

 

[waterbottle]

Here's the article in question:

EV parts maker Schaeffler signs first of a kind European rare earth deal

German auto parts supplier Schaeffler has signed a raw materials deal to ensure the supply of rare earth magnets from Europe for its burgeoning electric vehicle (EV) motor business, an executive told Reuters.

www.reuters.com

Looks like they're targeting 2024 which will coinicide with VML ramping up. VML also gets a mention in the article. Source is an executive at Schaeffler so likely to be true.
This is massive for VML if confirmed. I think we'd breach 10c IMO

 

[spratty84]

Here's the article in question:

EV parts maker Schaeffler signs first of a kind European rare earth deal

German auto parts supplier Schaeffler has signed a raw materials deal to ensure the supply of rare earth magnets from Europe for its burgeoning electric vehicle (EV) motor business, an executive told Reuters.

www.reuters.com

Looks like they're targeting 2024 which will coinicide with VML ramping up. VML also gets a mention in the article. Source is an executive at Schaeffler so likely to be true.
This is massive for VML if confirmed. I think we'd breach 10c IMO

Cheers for the link mate, happy days if true

 

[waterbottle]

Cheers for the link mate, happy days if true

I can't find any information on he Schaeffer website. The value of the agreement between Schaeffer and Reetec is yet to be announced, but I wouldn't be surprised if it isn't >100 Mil.
Fortunately there is a profit sharing agreement between VML and Reetec. That would mean a 50mil turnover for VML at a market cap of 270 Mil...

Big assumption here is that VML is the supplier in question. To my knowledge there are no other suppliers for Reetec to consider:
- Lynas has ties with China + dependent on Malaysian processing).
- MP is US based and sends its product to China for processing
- there is a UK group being established, although I believe they are still in the planning phase
- there are several Australian miners, although none with Reetec agreements

Edit:

I've compared VML to LYC in my previous posts but I'll do it again... Lyc turnover of 150 Mil pq which is 600 annualised. Market cap is 8.92 billion I. E. 14x revenue.
Meanwhile VML is a possible 50mil turnover at a 270. If the turnover is achieved, that should place it at 700 Mil market cap or a share price if 17c. This would be consistent with some of the broker reports that have been published....
Now this is excluding the premium that ESG focussed mining + ex-China mining + proximity to EU/US would attract!

 

[barney]

This could be big. Eagerly awaiting the news here...

We might get a bit of news in AEST tomorrow after the US trades tonight. The COO of Shaeffler indicated the value of the deal is to be announced on Wednesday (their time) States that they are "transforming" into an e-motor supplier and ramping up significantly. (Currently bearings/auto parts)

Shaeffler:

At a glance appear to have a Market Cap close to $1 Billion and turned over +$13 Billion last year for a NET $755 million (tick)

Dividend yield of +8% (tick)

Share Price has been struggling a bit however over the last few years

High yield and low SP ---- They should be on Traders radars particularly if good news presents

As @waterbottle mentioned, the deal with ReeTec is for 5 years starting 2024 so its a medium term plan

This is all foundational stuff at this stage, but VML/ReeTec are obviously being taken seriously in the market place

 

[waterbottle]

Confirmation that VML is being involved, although we still need a $ figure. This is sounds like a massive, multi-year deal. Schaeffler is a large automotive parts manufacturer. Several EU automotive groups have committed to the EV transition. VML has positioned itself nicely to take advantage of he EU market shift.
Direct from he Schaeffler website:

Schaeffler strengthens sustainable supply chain for electric motors

Purchase agreement with Norwegian manufacturer REEtec AS for rare earth metals for magnets used in electric motors Schaeffler is focusing on sustainability along the entire value chain Emission-free material production is an important step towards climate neutral operations by 2040

www.schaeffler.com

“We are delighted to have signed a five-year contract with Schaeffler and to be partnering with a globally successful market leader that prioritizes sustainability and transparency in the supply chain,” says Sigve Sporstøl, CEO of REEtec AS. “This partnership will complement our overarching sales strategy and allow us to build our industrial facility for the separation of rare earths in Norway.” Based on its proprietary technology, REEtec has been separating rare earths on an industrial scale since 2019. The new plant in Herøya, near Porsgrunn in Norway, will process rare earth carbonates produced by Vital Metals in Canada. The partnership with REEtec is part of the sustainable supply chain that Schaeffler is currently in the process of establishing. The company aims to reduce the number of emissions generated by preliminary products and raw materials in the supply chain by 25 percent by 2030 (Scope 3 upstream) and is set to be carbon neutral by 2040.

Interestingly, Schaeffler will have their annual general meeting today at 6pm AEST. I'm sure there will be questions about this, but it's in German and I am not a speaker...

 

[barney]

Looks like we will get a few ticks up on the open. The news is as expected. Positive but nothing to send the SP crazy. It will be a good test today, as there should be plenty of Volume for anyone wishing to leave the building

 

[waterbottle]

Yes positive news that will likely be tempered by news of accelerating rate hikes in the US...