The systematic methods: SIP, STP, SWP

The systematic methods: SIP, STP, SWP .... What are they?



These 3 terms are frequently used in the context of mutual funds. Learn what they mean and learn how you can benefit from these plans

Systematic investment plan (SIP), systematic transfer plan (STP) and systematic withdrawal plan (SWP) are methods of systematic investing and withdrawal. They serve different purposes, as discussed below.


Systematic investment plan (SIP)

 An SIP allows you to invest small amounts of money over time to build a corpus. By spreading out investments over a period of time, they help investors average their purchase cost. This prevents you from committing all your money at a market peak and hence maximises returns. SIPs also bring discipline to investing and make investing a habit.

The frequency of SIPs can vary; you can do a monthly, weekly or daily SIP. Also, there are various 'types' of SIPs. For instance, a value SIP changes your SIP amount as per the expensiveness of the market. Though this option sounds good, tinkering with the basic idea of SIPs only makes it complex. You are better off sticking to an ordinary SIP, preferably on a monthly basis.

SIPs have limited use in debt schemes as they are not as volatile or risky as equity schemes.



Systematic transfer plan (STP)

 Generally, one starts with an STP when there is a lump sum to invest. An STP helps spread investments over a period of time to average the purchase cost and rule out the risk of getting into the market at its peak. With an STP, an investor can invest a lump sum in one scheme (mostly a debt scheme) and transfer a fixed amount regularly to another scheme (mostly an equity scheme).

The basic idea behind an STP is to earn a little extra on the lump sum while it is being deployed in equity. Debt funds excel over the normal savings bank account.

Depending on the lump-sum amount, the investor can decide the period over which he wants to deploy the money in the market. Typically, the larger the amount, the longer the time period.

An STP can be done from an equity fund to a debt fund as well. If you are saving for some important goal, like your child's education, buying a home or retirement and you are nearing your goal, don't wait till the target date. Begin moving your money from equity to debt well before the time when you need the money.



Systematic withdrawal plan (SWP)

 An SWP allows you to withdraw a designated sum of money from a fund at regular intervals. Such a system is particularly suited to retirees, who are looking for a fixed flow of income.

SWPs provide the investor a certain level of protection from market instability and help avoid timing the market.






Happy Investing

Compounding can make you very rich

Compounding can make you very rich

You have to read this article to believe in the magic of compounding

There are two kinds of investors in this world, those who understand compounding and those who don't. Almost everyone who invests money claims to understand compounding but very few do.


In a way, that's an unfair accusation. Compounding produces such unintuitive results that perhaps only a few mathematical geniuses can be expected to have a real feel for it. The rest of us must rely on calculations. What will grow your money more? 10 per cent a year for 15 years, or 33 per cent a year for 5 years? The answer is that the two will earn the same amount, about 4.18 times.



But first, let's define exactly what compounding is. In the textbook (or on Wikipedia), the term that is defined is 'Compound Interest'. Here's the definition: Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding. Although we use the word 'interest', the idea applies equally to all forms of returns, not just those that are called interest.

The biggest thing that investors should appreciate about compounding is the enormous value of time. As your returns themselves start earning, and then the returns on those returns themselves start earning, the profit starts piling up at an enormous pace.

The graph below illustrates the example above and shows this clearly. The green line starts rising slowly, but as compounding takes over, the extra time means a lot more income.

Translated into a human lifetime, it means that starting to save at the age of 35 instead of 50 can mean retiring with four times the wealth. The graph shows this clearly. If one has time to learn just one thing about investing, then it should be this.








Happy Investing
Source: Valueresearchonline.com

Managing money after retirement

Managing money after retirement


During the decades of retired life, inflation destroys the value of your savings relentlessly. And there's only one way to fight old age poverty


'Retirement' is an event that takes place on one appointed day, but retired life is something that lasts for two to three decades. Confusing the two could lead to your senior years being seriously uncomfortable.


A few weeks ago, I wrote about how the conventional wisdom on retirement savings is condemning Indian savers to old age poverty. During the decades of retired life, inflation destroys the value of your savings relentlessly. Many, many people find that their savings are just not enough. Eventually, at some point, they realise that they are running out of money. Nothing is worse than a long period of old age where an old couple gradually loses prosperity and then eventually enters poverty. And yet, all around us, all of us can see any number of senior citizens to whom this is happening.


So how can you prevent this from happening to you? The first half, which I have written about in detail earlier, is about saving enough during one's working life and investing that money in equity-backed mutual funds. That sets the stage for a financially comfortable old age. The second part, which is the outcome, is deriving income from these savings once retired life begins.


If you have appreciated what I've been saying about inflation, then this much should be self-evident: you must spend, at most, only that part of your investment returns that exceed the inflation rate. This is another way of saying that you must preserve the value of your principal. However, you must preserve the real, inflation-adjusted value of your money, and not just the nominal face value.


Please read the preceding paragraph again, slowly and carefully. It's possibly the single most important input in having a financially comfortable old age. Now the question arises, how do you actually do this?


Let's take a simplified example. Suppose you retire today with say Rs 1 crore as your retirement savings. You place it in a bank fixed deposit. A year later, it is worth Rs 1.07 crore. So you have earned Rs 7 lakh, which you can spend, right? Not really. Assuming a realistic inflation rate of 5 percent, if you want to preserve the real value of your principal, you must leave Rs 1.05 crore in the bank. That leaves Rs 2 lakh that you can withdraw to spend over an year, which is Rs 16,666 a month. Is that enough? For a middle class person, surely not. It could be a little worse with some banks, and it could be a little better for something like the Post Office Monthly Income Scheme, but basically, for any kind a fixed income type of investment, this is roughly the calculation.


A very important thing to understand is that for fixed deposits (and similar investments) this calculation does not change even when interest rates rise because inflation and interest track each other quite closely. The real (inflation-adjusted) interest rate is not going to be more than about 1.5 to 2 per cent at best. So, if you need Rs 50,000 a month, you need about Rs 3 crore. Of course, at that level of income, income tax also has to paid; so, about Rs 30,000 a year will go out. This is the best case scenario. In practice, it's often worse, as there have been long periods of time in the past when the interest rate has been below the real inflation rate. Moreover, income tax on deposits has to be paid whether you realise the returns or not and that cuts further into returns. There can be a situation (often is, in fact) when the interest rate barely exceeds the inflation rate and the income tax on the interest is effectively reducing the real value of the money.


The situation is very different in equity-backed mutual funds. Unlike deposits, they are high-earning but volatile. In any given year, the returns could be high or low, but over five to seven years or more, they comfortably exceed inflation by six to seven per cent or even more. For example, over the last five years, a majority of equity funds have returns exceeding 17 per cent p.a, with about a fourth of them crossing 20 per cent. The returns may have fluctuated in individual years, and that's something that the saver has to put up with for getting rid of fear of old age poverty.


In such funds, one can happily withdraw four per cent a year and still have a big safety margin. On top of that, there is no income tax and the capital gains tax is 10% on actual withdrawals. Effectively, for a given monthly expenditure through equity funds, you need just half the investment that you would in deposits. So, for a monthly income of Rs 50,000 a month, Rs 1.5 crore will suffice instead of Rs 3 crore.


Even now, only a small (but growing) number of people have begun to understand and appreciate this idea and have started implementing it. These tend to be those who have used equity funds as their savings vehicle anyway and are used to the idea of ignoring short-term volatility in the interest of long-term gains. Unfortunately, most retired people are still looking for the non-existent safety that fixed deposits provide and end up facing hardships as they grow older.








Happy Investing
Source: Valueresearchonline.com

Achieving the dream of financial freedom

Achieving the dream of financial freedom



Financial freedom is something all of us want but few of us manage to achieve. Is there a hidden secret?



A lot of people ask for a lot of different kinds of financial advice. Sometimes, the advice is about inputs, as in, I have X amount of money, what should I do with it. Sometimes it is about outputs; I need X amount in five years so what do I need to do to ensure that happens. Sometimes it combines both. All these are fine and have quite well-established and sensible ways of selecting a solution.


However, there's one such demand for advice that is really hard to respond to, and that is, 'financial independence'. This may appear to be a vague term but actually signifies a roughly similar thing to different people, which is, not having to worry about money ever.

This is a common-enough dream. Since the daily grind of earning money dominates our lives, a permanent relief from this is the freedom that most of us desire. Of course, there are many degrees of financial freedom, and the ultimate one is not having to work to earn money for the rest of one's life. Of course, there are many who do not have to work. There are those with large inheritances, and there are those whose burden we taxpayers are committed to carry all our lives, but it takes most of us an entire working life to reach that stage; if at all we ever reach it.

However, the simple fact is that if we save and invest with a modicum of planning, lesser degrees of financial freedom can be achieved earlier in life, and can be just as good. For salary-earners, achieving even a mild form of financial freedom early in life is more important now than it was a decade or two ago. India is clearly passing through a jobs crisis. There are any number of people in the urban middle-class who have suddenly lost their jobs. Youngsters are finding their first jobs difficult to find, or have to take low-quality employment. Middle-level executives are being shunted out of their employment because employers think they can be replaced at lower cost.

This widespread crisis in financial confidence is different from how things were a few years ago. Most salary earners were confident in their jobs and were quite sure of frequent raises, either in their current jobs or better ones. They may not have had actual financial freedom, but effectively felt like they did. One can't really say when the employment situation will change for the better. However, those of us who change their attitude towards money, savings and personal finance, will be much happier, and will be able to deal with this new, uncertain world much more easily. While all these job-related problems are going on, the only people who are relaxed and not stressed are the ones who have enough savings. Unfortunately, the proportion of younger salary-earners, those in their 20s and 30s (who save), is quite low. In fact, the young generation is almost uniformly dedicated to negative savings! As soon as people start earning, they take on some EMIs, essentially spending future savings today.

This sounds like the same crusty advice that older people always give to the young, but it happens to be true. Whether the jobs environment improves or doesn't, saving as much as possible at the beginning of one's career immeasurably improves one's happiness level later. Today, those who have even a year or two's expenses (including any EMIs) worth of savings feel much more relaxed about careers. Not just that, I've seen that those who are financially secure in this way are also able to negotiate in their employment better than those who cannot take any risks.

This is actually as close to financial independence as most of us can get. It sounds like an obvious thing, but the first step in having enough savings is to save, and the second step is to save enough. Unfortunately, many of us don't get started for years after we start earning. Given the hyper-persuasive consumer culture that surrounds us, it's not easy to start, there's no other way to achieve financial independence.






Happy Investing
Source: Valueresearchonline.com

What's not there matters more than what's there

What's not there matters more than what's there


In the stock selection process, rejecting bad stocks is more important than picking good ones


It's the morning of September 11, 2001, at Boston's Logan International Airport. Unknown to the crowd, there are 19 young Saudi Arabian men who are about to board four separate flights, intending to fly them into landmark buildings in Washington DC and New York City. However, the previous day, the FBI's counter terrorism team managed to connect the dots on the information that they have had for months. Airport security is extra alert and the knives carried by the would be hijackers are detected and confiscated. With nothing resembling a weapon, the 19 abandon their missions. They come out of the airport terminal and head for their apartments. That night, all of them are arrested. The news hardly makes it to the inside pages of newspapers, and TV news ignores it altogether. In the era before social media, hardly anyone in the world gets to hear of it.


If you read the history of the events leading up to 9/11, you'll realise that it may well have happened like this if a lot of obvious clues had not been ignored by American security agencies. The interesting part is that had it happened that way, those who cracked the clues and prevented the hijackings would not have been heroes. No one would have known what a huge global calamity had been prevented and so the arrests would have been just routine, low-key counter-terrorism work. The moral of the story is simple: what is averted rarely catches attention, no matter how critical its occurrence would have been.



No one knows what didn't happen

 So what does all this have to do with stock investing? A couple of weeks ago, at an event organised by Aditya Birla Mutual Fund in Mumbai, there were many fascinating speakers, including Subramanian Swamy and hedge fund manager Samir Arora. Till 2004, Arora used to manage Alliance funds in India before they were acquired by Birla Sun Life. He now runs an India focused hedge fund called Helios from Singapore. Arora is widely known to be one of the most feisty perma-bulls on Indian equities, one who is eternally optimistic about the Indian markets, and with good reason.



In his customarily witty and yet thought provoking style, Arora delivered some fundamental truths about the whole business of equity investing. One of the most intriguing things he said was that an investor need not have full conviction about what he invests in. That sounds like a crazy thing to say. Isn't the whole idea behind fundamentally driven investing that of having conviction in what you buy? Not quite, Arora says. Instead, he says, that you need stronger conviction in what you reject and your conviction in what you buy can be weaker.


Arora's point is quite interesting. He says that when you select a stock, you can never be 100 per cent sure that it's worth investing. If you ask 10 questions, then there could be 50 more. Even when you actually buy the stock, you can never be sure. However, the rejects are not like that. Once you detect something wrong, then there are no more questions to be asked and no more answers to be evaluated. You have 100 per cent conviction that this is a stock to avoid.


Investment decisions are like first dates

 With his trademark humour, Arora explains, 'After the first date, you may say I don't like her and that is the end of the story. But if you like her, you will do more due diligence on her, which means you don't have conviction on the first date. Nobody says on the first date, I'm marrying her. On the first date, you only say I'm not interested in her. Therefore, we have turned it around. I will show you that there is no end to the conviction that you need in what is good. But in what is bad, one line is enough and that is one big way of reducing the stress, that I must have high conviction. I will never have it in what I buy. I have more conviction in what I don't own and the remainder I have in my portfolio.'



The real job of an investor is that of avoiding disasters. This makes me think of what we really do researching stocks. On the face of it, we select stocks and recommend them. However, when I look at the actual process of selecting stocks that we have, then the real activity is of rejecting stocks. We're like American security agencies in the alternative history that actually did not happen. The hidden job of any Stock Advisor is to reject stocks that look like legitimate passengers but are actually hijackers. And when we do that job well, you may not even realise that we have done so.






Source: Valueresearchonline.com
Happy Investing

Forget Lithium, This Is The Next Big Thing In Energy

Forget Lithium, This Is The Next Big Thing In Energy

   
By. Ian Jenkins



Forget about lithium, last year’s “White Petroleum.” It’s about to be left in the dust. The mineral of the moment is Vanadium…the key to the next energy revolution.

“”Analysts pegged it as the “metal to watch” in January. And they were right.

The price of vanadium has soared 300% in the past three years.

’According to Bushveld Minerals’ CEO, vanadium was the best performing battery mineral of 2017.

’…’It’s already a hot commodity for the steel industry…but that’s just the beginning.

The mineral is about to be in high demand, thanks to its role in a revolutionary new battery technology and the burgeoning steel industry in the U.S.

And one company is sitting on the only potential major U.S. deposit of Element 23: United Battery Metals (CSE:UBM, OTC:UBMCF)

UBMCF has only a $14 million market cap, but it’s sitting on a mineral deposit estimated to be worth $49 million when mined…and with Vanadium prices surging, that figure is expected to climb higher.

’Why is it so important? Well, Vanadium is likely to displace lithium as the world’s most important battery metal.

’’’That’s according to billionaire Robert Friedland, who says there’s a revolution coming in energy storage, and it’s all thanks to Vanadium.

“”’’can’t do... and usher in the dawn of the LARGE battery market."Flow batteries, running on “liquid electricity,” are about to take the energy storage world by storm. They won’t replace the small battery lithium market. Instead, they’ll do the big job storage lithium batteries can’t do... and usher in the dawn of the LARGE battery market.

’China is building the world’s largest battery using vanadium redox flow battery (VRFB) tech. But the United States has no strategic reserve.

’The White House has labeled Vanadium as a mineral crucial to national security. But there’s no domestic supply.

&…The U.S. could fall behind, but UBMCF is trying to fill the gap…and make a fortune in the process.

Here are 5 reasons investors should take note.

#1 The Future of Energy"#1 The Future of Energy

’So, what’s so special about Vanadium?

One word: batteries.

Vanadium redox flow batteries, or VRFB, are about to become the foundation of energy storage.

’They’re bigger and better, can hold more energy for longer, and can be scaled up to match any need.

Imagine batteries that can be produced in differing sizes to fit differing needs: from powering a car... to charging 50 cars simultaneously... to fueling a house... to producing enough energy to power a factory.

’Robert Friedland, legendary mining billionaire and recipient of the 2017 Northern Miner’s Lifetime Achievement Award, knows vanadium is revolutionary, evolutionary and a technology dream come true.

&“’” “The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be done with a lithium battery. With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.”



View photos (Click to enlarge)

A study completed last year by the Imperial College London found that flow batteries beat out their lithium competitors: they would require an investment of only $4 billion to reach a level lithium could only reach after $94 billion.

’That’s a better result by a factor of over 20.

’Moreover, VRFBs are safer: unlike lithium, they aren’t prone to sudden catastrophic failures, leading to overheating or explosions.

’It’s official: lithium has met its match.

…&And the demand for Vanadium is expected to skyrocket…which is why prices have been climbing all year, doubling since September 2017 and United Battery Metals is positioning itself to benefit from the coming boom.





#2 Global Battle for Element 23"#2 Global Battle for Element 23

’The power of vanadium is no secret. In fact, vanadium steel has been around for a while. Lighter and stronger than other metal alloys, it’s used in the manufacturing of complex components in airplanes, high performance cars and rocket engines.

Today, vanadium is found in 43% of cars. But by 2025, 85% of cars are projected to use vanadium steel components, thanks to their improved durability and lower weight. 

’So it’s already fulfilling a crucial role in the global economy. And the price has been steadily rising, 50% in 2018 and 300% in the last three years.

But Vanadium use is about to get a lot bigger, thanks to the surge in VRFB storage.

’China is leading the way. It wants to launch multiple VRFB pilot projects, with 100 MW-scale VRFBs in place by 2020. This $500 million installation will triple China’s grid-connected battery storage capacity.

China has already started construction on the biggest battery in the world, a 200-MW 800-megawatt/ hour storage station in Dalian province. The battery will be charged with wind power and will utilize VRFB technology to store more power for longer, resulting in a stable energy grid without any fossil fuels or lithium.

’Other countries are following China’s lead. India plans to install 50 solar parks with 500 MW capacity in the next several years. These parks, equal to 40 modern nuclear power plants, will need VRFB batteries to handle their colossal energy production.

…’The U.S. expects energy storage demand to increase 900% by 2023. Filling that much capacity will take a lot of Vanadium…but the U.S. has no strategic supply, and China is buying up the world’s supply at an astonishing rate.

’“’’”As Mining.com puts it, it’s the metal “we can’t do without and don’t produce.”

’…To compete, the U.S. needs its own Vanadium supply. And that’s where United Battery Metals aims to come in…





#3 American Vanadium"#3 American Vanadium

United Battery Metals is unique among American mining companies: it’s sitting on top of an estimated resource of 2,640,000 pounds of vanadium according to a report prepared in 2013 by Anthony Adkins who is a qualified professional geologist.

’The company’s property at Wray Mesa used to be a uranium mine. At the height of the Cold War, the mine supplied the United States with precious uranium.

’’’UBMCF’s mining team had a hunch. Where there’s uranium, there’s usually vanadium close by, as the two minerals tend to be found in close proximity.

At Wray Mesa, according to the previous 43-101 completed, there is an inferred resource of 500,000 lbs. of uranium with an estimated vanadium resource of 2,640,000 lbs.

According to one estimate, Vanadium is being found at a ratio of 6:1 or even 14:1.

The current estimated total deposit as per the previous 43-101 report could be huge, as big as 2.64 million pounds of vanadium, with a current market price of $50 million for mined product.

The company plans to further explore and hopes to significantly increase the size of the resource so the current 2,640,000 pounds could just be the starting point with blue-sky potential on the Wray Mesa.

’But that’s just the beginning, based on previous efforts to uncover uranium. The UBMCF team has new exploration underway that focuses JUST on vanadium.

“”Plus, the area is exposed sandstone and should pose no challenge to experienced miners. All they need to do is dig a little to “scrape up” the exposed vanadium.

’More than 700 holes have been dug by previous miners, and there’s plenty of local infrastructure in place to move the product to market with less than the usual extensive capex.



View photos (Click to enlarge)

With prices climbing and demand sure to soar, the team at UBMCF is sitting on a gold mine.





#4 Team Vanadium"#4 Team Vanadium

There’s a team at United Battery Metals are ready to turn vanadium dreams into a reality.

’President and CEO Matthew Rhoades is an accomplished professional geologist with thirty years of extensive experience in the US, Mexico, Canada and South America. He’s experienced in battery tech and lithium mining, having served as former state geologist of New Mexico.

Advisor Eric Saderholm is another mining professional with three decades of experience, and a man who has added millions of ounces of gold to reserve bases in Nevada, Washington and Peru.

’Mr. Saderholm worked with Newmont Mining as their exploration manager for the entire western region of the USA. His skills and access to potential new properties add tremendous value to the company’s portfolio.

UBMCF has a potential major find on their hands: what could possibly be one of the first productive vanadium mines in the United States.

And UBMCF arrived to the scene before the rising tide of interest in VRFBs becomes a tsunami.



#5 The Future is Already Here"#5 The Future is Already Here

Analysts have taken note: vanadium is no fad.

It’s about to completely upend the global battery market. Lithium, the “White Petroleum,” is about to be left with the leftovers.

There are powerful reasons to expect the vanadium market to surge in the coming months.

And UBMCF is one of the only companies in the U.S. positioning to supply domestic need.

’’Right now, the Chinese are leaps and bounds ahead in the VRFB race. They’re building the world’s biggest battery, the size of 20 soccer fields, and they want hundreds more just like it. The U.S.-Chinese trade war is heating up, and you better believe China will buy up all the Vanadium it can find.

…&The U.S. could miss out…but United Battery Metals is working to meet American Vanadium needs. By 2020, the U.S. could be the largest vanadium market on the planet.



View photos (Click to enlarge)

Even with all the vanadium buzz, the story around UBMCF has gone unnoticed.

This little company may be the only game in town when it comes to Vanadium mining, and its little market cap is sure to grow bigger and bigger if it starts mining the estimated 2.64 million pounds locked away at Wray Mesa.

…’This is the opportunity in energy that no one has seen coming…but it’s worth paying attention if you think about the future.

Other resources companies looking to take advantage of the next commodity boom:

Franco-Nevada Corporation (NYSE:FNV) specializes in securing precious-metal streams, but the company also works in the oil and gas industry. With key assets in some of North America’s most desirable oil and gas plays, including Texas, Oklahoma and Alberta, it is clear that the company has amazing potential in the coming years."Franco-Nevada Corporation specializes in securing precious-metal streams, but the company also works in the oil and gas industry. With key assets in some of North America’s most desirable oil and gas plays, including Texas, Oklahoma and Alberta, it is clear that the company has amazing potential in the coming years.

’’Franco-Nevada’s diverse holdings make it a key company in tomorrow’s new energy revolution, and its latest investment with Minera Panama, a subsidy of First Quantum Minerals, according to a late-September announcement, is going smoothly, as well.

Enbridge, Inc (NYSE:ENB), based in Canada’s oil sands capital Alberta, is an energy delivery company focusing on transportation, distribution, and generation of energy. Operating in the United States and Canada, Enbridge owns and operates the largest natural gas distribution network in Canada and the longest crude oil transportation system in the world. Founded in 1949, investors can feel confident in Enbridge’s experience and market know-how."Enbridge, Inc (NYSE:ENB), based in Canada’s oil sands capital Alberta, is an energy delivery company focusing on transportation, distribution, and generation of energy. Operating in the United States and Canada, Enbridge owns and operates the largest natural gas distribution network in Canada and the longest crude oil transportation system in the world. Founded in 1949, investors can feel confident in Enbridge’s experience and market know-how.

’Though not strictly dealing in commodities, Enbridge’s diversified assets and connections to a variety of industries position the company as solidified player in many Canadian industries.

Despite some pipeline problems over the past year, Enbridge was recently given the OK by regulators to begin its Ohio-Michigan NEXUS natural gas pipeline project which will connect the Marcellus and Utica shale basins with customers in other parts of the United States and Canada.

Ballard Power Systems (NASDAQ:BLPD) Ballard develops and produces hydrogen fuel cell products for markets such as heavy-duty motive, portable power, material handling and transportation. In addition to its production and development of fuel cell products, Ballard also holds over 2,000 patents/applications."Ballard Power Systems (NASDAQ:BLPD) Ballard develops and produces hydrogen fuel cell products for markets such as heavy-duty motive, portable power, material handling and transportation. In addition to its production and development of fuel cell products, Ballard also holds over 2,000 patents/applications.

""August, Ballard announced a huge divestment agreement, releasing non-core assets to Revision Military Ltd., for up to $16 million in cash to provide a hefty boost to its fuel cell business.  CEO Randy MacEwen noted, "This divestiture is consistent with our strategy of continuous portfolio optimization. We decided to divest Protonex assets that are no longer aligned with Ballard's strategic fuel cell focus, while retaining assets related to the unmanned vehicle market, under the Ballard brand.”"At the end of August, Ballard announced a huge divestment agreement, releasing non-core assets to Revision Military Ltd., for up to $16 million in cash to provide a hefty boost to its fuel cell business. CEO Randy MacEwen noted, "This divestiture is consistent with our strategy of continuous portfolio optimization. We decided to divest Protonex assets that are no longer aligned with Ballard's strategic fuel cell focus, while retaining assets related to the unmanned vehicle market, under the Ballard brand.”

Largo Resources (OTCMKTS:LGORF) is another Canadian resource explorer diving into the vanadium industry. In addition to vanadium, Largo explores for iron, tungsten, molybdenum, chromite, palladium, and platinum group metals. It’s flagship project, the Maracás Menchen Mine, has been profitable for Largo, but its real potential lies in its new initiatives."Largo Resources (OTCMKTS:LGORF) is another Canadian resource explorer diving into the vanadium industry. In addition to vanadium, Largo explores for iron, tungsten, molybdenum, chromite, palladium, and platinum group metals. It’s flagship project, the Maracás Menchen Mine, has been profitable for Largo, but its real potential lies in its new initiatives.

“In early October, Largo announced new production results, in addition to a management shakeup. CEO Mark Smith noted, “With 7,235 tonnes of V2O5 produced so far this year, the Company is well positioned to achieve the upper end of its increased and revised 2018 guidance range of 9,150 to 10,150 tonnes of V2O5 produced for the full year."

Prophecy Developments (OTCMKTS:PRPCF) owns the Gibelinni project, another Nevada-based plot containing significant vanadium reserves. Prophecy, like First Vanadium and United Battery Metals, are trying to become America’s go-to vanadium producer."Prophecy Developments (OTCMKTS:PRPCF) owns the Gibelinni project, another Nevada-based plot containing significant vanadium reserves. Prophecy, like First Vanadium and United Battery Metals, are trying to become America’s go-to vanadium producer.

“”Last week, Prophecy appointed a new President and CEO, Gerald Panneton, an expert geologist and businessman with years of experience in the field. Mr. Panneton noted, “I am very excited to join the Prophecy team to work on the Gibellini vanadium project in Nevada. The Gibellini project represents an excellent opportunity to be developed in the very near future, as it stands to be a low-cost producer due to its very low strip ratio, and a low-cost heap leach operation in the mining friendly state of Nevada.”

By. Ian Jenkins


Forward-Looking Statements"Forward-Looking Statements

Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, mining of the vanadium may not be cost effective; even if mining is successful, UBM’s property may not yield 2.7M pounds of vanadium; UBM may not raise sufficient funds to carry out its plans, changing costs for mining and processing; permits may not be easier or quicker than regular mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper vanadium; more production of vanadium could reduce its price, or the price may drop for other reasons; technological advances to reduce vanadium system costs may not occur as expected; alternatives could be found for vanadium in battery technology; the availability of  labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, or that the required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law."This article contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this article include that prices for vanadium will retain value in future as currently expected; that UBM can fulfill all its obligations to maintain its property; that UBM’s property can achieve drilling and mining success for vanadium, and potentially sell 2.7M pounds of vanadium; that the vanadium extraction process being developed will be cost effective; that the vanadium battery process can be commercialized for large scale production; that high grades found in samples are indicative of a high grade deposit; that vanadium prices will increase; that high-grade vanadium is in sufficient quantities to make drilling economic; that permits may be easier and quicker than usual because vanadium is considered a vital element for America; that batteries and EVs will start using large amounts of vanadium; that vanadium system costs will be reduced quickly and dramatically; and that UBM will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, mining of the vanadium may not be cost effective; even if mining is successful, UBM’s property may not yield 2.7M pounds of vanadium; UBM may not raise sufficient funds to carry out its plans, changing costs for mining and processing; permits may not be easier or quicker than regular mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper vanadium; more production of vanadium could reduce its price, or the price may drop for other reasons; technological advances to reduce vanadium system costs may not occur as expected; alternatives could be found for vanadium in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, or that the required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.





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Source Article by By. Ian Jenkins


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