Tim Treadgold: why vanadium developer TNG could be about to power up

Date: Sep 11, 2018

Investors are forgiven for overlooking TNG Ltd — a vanadium-project developer with a share price that has gone nowhere for the past two years.

But with demand for the steel-hardening metal starting to be influenced by its electricity-storage credentials, the TNG story could be about to power up.

Never an easy metal to produce or sell, vanadium has enjoyed past booms — and just as many busts. Wise investors will know — if they’re interested in exposure to vanadium — that’s when TNG gets interesting because it is a low-cost entry into a big game.

At a share-price of 12c TNG is trading at exactly the same price as mid-2016 — despite a sharp rise in the price of vanadium and titanium, the other key metal in its flagship Mt Peake project in the Northern Territory.

The main reason the stock has stagnated is that investors have been waiting for TNG to finalise the approvals process and financing for a mine and associated processing facilities with a hefty price tag of $853 million.

TNG shares (ASX:TNG) have been going nowhere for the past two years
TNG shares (ASX:TNG) have been going nowhere for the past two years

Progress on both fronts is being made with a native title agreement reached with traditional land owners last month and financing talks said to have reached the due diligence phase with a number of potential funders.

The next few months could see significant moves in the development of Mt Peake.

The project does have an advantage over other emerging vanadium projects — a finalised and comprehensive feasibility study which is ready of a final investment decision.

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