Investing for the future: Multicom CEO talks vanadium demand drivers

By Lelde Smits. Published at Nov 7, 2018, in Podcasts

Multicom Resources' CEO Shaun McCarthy recently spoke with The Capital Network’s Lelde Smits about future demand drivers for vanadium.

Lelde Smits: Hello, I’m Lelde Smits for The Capital Network, and joining me in Brisbane is the CEO of Multicom Resources, Shaun McCarthy. Shaun, welcome.

Shaun McCarthy: Thank you, Lelde.

Lelde Smits: Multicom Resources is a mining company that is developing a vanadium asset here in Queensland. Why are you bullish about the prospects for vanadium?

Shaun McCarthy: At the moment, we only really have to look at the vanadium price and the fact that it’s gone up over 500% in the last few years to at least get a little bit excited. But it’s the supply and demand dynamic we are seeing that is really underpinning that change in price.

Lelde Smits: That is a huge gain that you are talking about. What factors have underpinned the recent gains in the price of vanadium?

Shaun McCarthy: Quite simply, over 91% of the world’s vanadium is used in steel production. We’re seeing the supply of vanadium from China, largely. China is producing half the world’s supply, but we’re seeing that supply constrained through environmental regulations. What we are also seeing at the same time is demand going up, driven by economies such as China where they are increasing the amount of vanadium and are using it in every tonne of steel. Uses such as construction reinforcement bar and other uses for steel such as in aircraft, electric vehicles and beyond. The outlook for vanadium in the demand space is quite exciting.

Lelde Smits: Certainly, that’s an explosive demand and, as you mentioned, enough to get very excited about. Looking ahead, what emerging technologies or industries will be supporting demand for vanadium?

Shaun McCarthy: Vanadium redox flow battery. Flow batteries are a fantastic technology that are well-suited to grid scale storage and are probably going to be seen in a lot of the new renewable projects that are likely to be installed or are being installed globally.

Lelde Smits: It’s no doubt why people are becoming interested in vanadium, but as they’re looking to invest in assets or in companies, what would you be advising investors to look out for?

Shaun McCarthy: Well, like most mining stocks, the one thing to look at is the quality of the resource and how well-understood it is. For instance, with Multicom Resources’ Saint Elmo project, we’ve got a well-understood resource - a JORC-compliant, large-scale one. Beyond that, you look to the team that will guide this project and the company through its various developments. We believe we’ve got a strong executive team that is driving this project from the ground up, but is supported by a very well-experienced board.

Lelde Smits: Globally speaking, where will see production come from for vanadium and who’s likely to support the demand in terms of meeting the demand, moving ahead?

Shaun McCarthy: A lot of the demand is going to need to be made up of new projects, and that’s one of the reasons why the Saint Elmo project is well-positioned. There are a number of other players globally that are looking to bring new production to market. But without that, what you are probably going to see is continued supply constraint and this deficit that has already been created. We’ll see how that impacts the price long-term, but we expect the outlook to be quite positive.

Lelde Smits: Excellent, thank you for the insights. Certainly, vanadium is a commodity to watch in the future.

Shaun McCarthy: Thank you, Lelde.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X