Independent Speculator Talks With Chairman of The Hottest Vanadium Junior Miner (Vanadium up 900% since 2016)

Independent Speculator Talks With Chairman of The Hottest Vanadium Junior Miner (Vanadium up 900% since 2016)

October 24, 2018

Louis James, long time Doug Casey's International Speculator team member, interviews Prophecy's Chairman John Lee, about Prophecy's flagship Gilbellini Vanadium Project, its progress, vanadium price and plans ahead. It has gathered tens of thousands views and a can't miss.

https://independentspeculator.com/independent-speculator-interviews-john-lee-ceo-of-prophecy-development-corp

Prophecy Development Corp (TSX: PCY) owns Gibellini project the only large-scale, open-pit, heap-leach vanadium project of its kind in North America. Located in Nevada, Gibellini has the largest NI 43-101 compliant measured and indicated primary vanadium resource known in the USA and is currently undergoing EPCM and EIS preparation. With global vanadium supply declining and demand increasing, this is the right project at the right time. Prophecy has approximately 78 million shares outstanding.

Vanadium pentoxide price reached all time high of $31.5/lb (www.vanadiumprice.com) from 2016 low of $2.5/lb due to Chinese upgrade of vanadium intensity in steel re-enforcement bars in the construction industry, as well as increasing vanadium usage in the aerospace industry and large scale vanadium batteries in the utility industry.

5 reasons to follow Prophecy's Gibellini Vanadium Project:

Located in Nevada, premium location for mining- Ranked #1 for North America mining investment (Fraser Institute)
Vanadium price has increased by more than 900% since 2016 from US$3/lb to US$31.5/lb on the back of strong demand and restricted supply
Low Capex, Low Opex, High IRR
Near Term Production complete permitting in 2020, commence construction in 2021, start vanadium production in 2022
Vanadium is key to worlds energy future!

Highlights of the interview:

"What we see is the perfect storm in terms of restricted supply and steady demand for vanadium from all sectors: from rebar to aerospace to batteries I would not be surprised if vanadium price goes to US$50/lb or even US$100/lb"

"Key drivers of demand for vanadium is: upgrade of high strength rebar standards in China which will result in doubling of vanadium addition to steel and increase vanadium consumption by 30%, application of vanadium in aerospace industry, and batteries industry where vanadium batteries are ideally suited for the solar and wind power which constitutes over 700 GW of generation capacity"

"If you look at the supply side there is not another greenfield vanadium mine coming into production for another 5 years!"

"There is one thing we really love, really passionate about operating in Nevada - it is the best place for mining investment in all North America, where all stakeholders respect the rule of law and share the common objective of bringing the Gibellini Vanadium Project to production this is one of the beauties of operating in the US!"

Nick Hodge of the outsider Club (https://www.outsiderclub.com/) just issued an alert to its subscribers with following highlights:

"An updated, 2018 PEA pegged the after-tax NPV at US$338.3 million and the IRR at 50.8%. Gibellini contains 129.28 million pounds of vanadium pentoxide (V205) grading 0.294%. The current mine plan envisions producing 9.65 million pounds annually for over 13 years, paying back its capital cost of US$116.8 million in 1.72 years. The after tax net present value of the Gibellini vanadium project is north of US$338 million, meaning Prophecy is trading at a significant discount to its project value.

That was all done at a vanadium price of $12.73 per pound. Vanadium prices are currently twice that.

Two weeks after my March trip, Prophecy put out a news release that Northwest Nonferrous had entered into a technical advisory and cooperation agreement to advance the Gibellini project. And they may become an equity holder.

Couple this with the fervor in vanadium that is expected to continue, including China becoming a net importer, and the sector is ripe for increased valuations from which I believe Prophecy will benefit.

Plus it has the additional benefits of an experienced Chinese partner, an oxidized black shale ore that doesn't need roasting, and a streamlined permitting process with the tailwind of a newly-supportive government.

Shares have been as high at C$0.50 in the past year but now trade at ~C$0.285.

We are buying Prophecy Development Corp. (TSX: PCY)(OTC: PRPCF) below C$0.50."

And

Prophecy just announced other significant news:

Founder and Ex-CEO of Major Producer Detour Gold joins Exciting Vanadium Start Up

Gibellini Video Footage can be viewed at

https://www.youtube.com/watch?v=SA5Bt3ngIYg&t=12s

Trade Prophecy at links below:

US Brokers (OTCQX: PRPCF)
www.tdameritrade.com
www.etrade.com
www.fidelity.com
www.merrilledge.com