Australian Vanadium’s Gabanintha project would be worth $3.3bn at today’s prices

Date: Sep 26, 2018

Australian Vanadium estimates its Gabanintha project will have a net present value of $US1.1 billion over the first 17 years at an assumed price of $US13/lb, according to an initial production scenario.

NPV is a metric used to assess the value of a project today — based on future projected cashflows. A positive NPV means a project should go ahead. The higher the NPV, the more valuable a project could be.

At current vanadium prices — above $US21/lb, the highest since 2005 — the project would make $US2.4 billion.

Estimated operating costs of $US4.1/lb makes Australian Vanadium’s Gabanintha project competitive with some of the world’s lowest cost producers, it said.

A planned vanadium pentoxide (V2O5) refinery at the Gabanintha site will produce about 10,000t of V2O5 each year over an initial 17 years, with potential to extend the mine life.

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