Energizer Resources EGZ

I've been in this company for a long time because I really think they have incredible potential. Here are my reasons:
1. absolutely massive 100% owned vanadium discovery in a good area (politically stable, environmentally safe, good access etc)
2. Vanadium batteries could be the best battery technology to date... you might want to read about them - they do have a downfall in that mass production of these batteries has not been achieved yet.
3. Vanadium batteries will likely (eventually) be produced on a global scale for electric cars, wind and solar farms
4. Property is completely undeveloped meaning opportunity.
5. Vanadium is used in steel and can grow with that market without battery market.

Looking for others feedback and financials insights.

No assets, no resource estimates, nothing. They have made $50,000,000 disappear and have absolutely nothing to show for it on their balance sheet (except approx $1-2M in net cash). They can only continue to issue stock during the long wait for something to happen.

Despite this, the stock gained more than 5% today. Any idea what news we should be waiting to hear?

How can you say they have no resource estimates? They own what is believed to be the largest vanadium deposit in the world (21 km long)... Resource estimates are around 26 million tonnes and they are currently preparing the updated compliant estimates to include the drilling done to date. I am guessing that is the pending news.

I took a look at the MD&A instead of the financial statements. It says they are unable to capitalize the reserves until they can prove it is economically feasible to develop the property. On the balance sheet it shows nothing. However, you are right that there is a small not concerning the 21km property with some drill results for a small portion of it showing 7% vanadium content (I think that was what it showed, sounds good).

OK, so taking the estimates, we have 26 million tonnes at $5 per tonne market price? Costs estimated at 50% of revenues. Therefore profit of $2.5 per tonne x 26,000,000 = $ 65,000,000. Current stock price shows market cap of $ 37,500,000 (110,500,000 shares x $0.34). That is the kind of room we are playing with. Now seeing that the production from the mine will never yield all 26 million tonnes at once (it will be spread over many many years), and that the resource estimates are likely to be high, and the company is likely to sell to another company at much less than the market value rather than enter into production themselves, I think the stock is pretty much fully valued right now.

However, if there is a spike in the price of Vanadium from increased demand (or speculation), it could drive the valuation up. But with no other assets on the books, the downside in the event the property does not prove itself is a value for the stock around $0.10 (which includes some allowance for the resale of the property).

Now thats the financial side of it, but that is not to say that money can't be made on a stock like this, we have seen it been done (NRI). Just know that I would recommend bailing on it early after any sudden increase.