Yellow Rock Resources Offers Renewable Energy Exposure
Yellow Rock Resources has a globally significant – i.e. large and high grade - vanadium resource in Western Australia. The experience of other late stage Phase I resources companies in a tough capital market suggests it could struggle to get something approaching $200 million with a current market value of less than $8 million. What gives Yellow Rock Resources an investment edge? It is positioning itself to take advantage of the widespread adoption of redox flow batteries. Vanadium redox batteries are the leading candidate to work with solar and wind power generating facilities to help match the unpredictable timing of energy output with user needs. The focus on battery storage as a sales driver rather than GDP also means less reliance on the “China factor” with advanced western countries being among the leaders in generating a higher proportion of energy needs from renewable resources. Yellow Rock Resources could play a commodity diversifying role in a resources portfolio with an exposure to advancing western country technologies.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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