Vanadium One Energy Corp. (TSXV:VONE) – Hot Iron Ore Price, Deeply Discounted Stock
August 6, 2019
Impact: Positive
Vanadium One continues to be materially undervalued despite iron ore prices making multi-year highs (Figure 1 & 2) and the company continuing to de-risk a project that should be of interest to producers in the space. Additionally, the last time the iron ore price was at this level, there was a significant increase in M&A activity (Figure 1 & 2). The lowest acquisition multiple for exploration/development stage assets from the last 10 years (US$0.07/t– Figure 3) implies a value for Vanadium One of C$0.85/sh (+963%). In our view Vanadium One is likely to re-rate as the project is de-risked (PEA in Q3/19). With the current strength in the iron ore price environment, Vanadium One is an attractive acquisition target.