IESVF - Vanadium Miners News For The Month Of August 2023

2023-08-30 11:50:18 ET

Summary

• Europe's vanadium pentoxide spot prices were flat the past 30 days. In China and Europe, ferrovanadium prices were flat.
• Vanadium market news - Lower vanadium prices due to weaker demand in the Chinese construction market; partially offset by higher VRFB deployments and increased aerospace demand.
• Vanadium company news - Neometals secures Glencore offtake agreement from the Finnish Vanadium Recovery Project. Barrambie DSO & mixed gravity concentrate PFS NPV10% of ~ at an IRR of 45% pa.
• Australian Vanadium electrolyte manufacturing facility construction is underway. VanadiumCorp electrolyte manufacturing facility construction is on track.

Welcome to the Vanadium miners news.

August saw continued low prices for vanadium and some good progress from several vanadium junior miners.

Vanadium uses

Vanadium is traditionally used to harden steel. Chinese rebar standards are requiring more vanadium. Also Vanadium Flow Batteries [VRFBs] are becoming increasingly popular especially for commercial energy storage, most notably in China. Vanadium Pentoxide [V2O5] is used in VRFBs and Ferrovanadium [FeV] is used in the steel industry.

Vanadium spot price history

Europe Vanadium Pentoxide [V2O5] Flake 98% one year price chart - Current price = USD 7.70/lb (China price not given).

China and Europe Ferrovanadium [FeV] 80% one year price chart - China = USD 32.50/kg, Europe = USD 32.00/kg.

Vanadium demand versus supply

In 2017 Robert Friedland stated : "We think there's a revolution coming in vanadium redox flow batteries...."

An April 2021 Wood Mackenzie report stated (emphasis added):

Global energy storage deployment surged a remarkable 62% in 2020, with 5 GW/9 GWh of new capacity added. This brought the total energy storage market to more than 27 GWh. Furthermore, we expect the global (energy storage) market to grow 27-fold by 2030.

ResearchAndMarkets forecasts VRFBs to grow from US$237.5M in 2022 to US$1,300M by 2030 ( source ).

Global VRFB forecast growth by region 2022-2031.

CRU forecasts vanadium demand to double by 2032 mostly due to VRFB's ( source ) (As of January 2023).

Large scale global deployments of VRFB's are becoming more common ( source ).

Vanadium market news

On August 7 Yahoo Finance reported :

Global Vanadium Market 2023: Increasing steel production and growing demand for renewable energy to drive $3.93 billion market by 2028. The global vanadium market was valued at US$2.84 billion in 2022. The global vanadium market production stood at 110.53 thousand tonnes in 2022 and is expected to reach 135.16 thousand tonnes by 2028. Whereas, the global vanadium market consumption stood at 112.19 thousand tonnes in 2022... The vanadium market is expected to grow at a CAGR of approx. 5% during the forecasted period of 2023-2028.

On August 9, Largo Inc. announced a Vanadium Market Update:

• ...Lower vanadium prices can be attributed to weaker demand in the Chinese construction market; however, these prices been partially offset by higher VRFB deployments in China and increased aerospace demand.
• The average European benchmark V2O5 price at June 30, 2023 was approximately $7.98 per lb, compared with approximately $10.13 per lb at March 31, 2023 and $9.15 per lb at June 30, 2022.
• According to Vanitec, demand in energy storage applications has increased by 141% from Q1 2022 to Q1 2023."

On August 29 Bloomberg reported :

China banks to cut rates on mortgages, deposits in stimulus push... China's state banks are throwing nearly all they have at seeking to boost consumer spending, directed by policymakers who are digging deeper into their toolkit to shore up growth in the world's second-largest economy. As soon as Tuesday, China may announce that the big state-owned banks are cutting rates on the majority of the nation's 38.6 trillion yuan ($5.3 trillion) of existing mortgages, according to people familiar with the matter. The reductions will only affect loans on first homes, according to two of the people...

Vanadium miner news

Vanadium producers

G lencore [LSX:GLEN] [HK:805] ( GLCNF )

Glencore is a large vanadium producer, but vanadium production represents only a small portion of their revenue.

On August 8, Glencore announced :

2023 half-year report...Against the backdrop of a normalization of commodity market imbalances and volatility, primarily across the energy spectrum, our Marketing and Industrial segments posted a healthy earnings performance, delivering Group Adjusted EBITDA of $9.4 billion, cash generated by operating activities of $8.4 billion and Net income attributable to equity holders of $4.6 billion.

On August 8, Glencore announced :

Share buy-back program... of an aggregate value of USD1.2 billion... with intended completion by the time of the Group's full year results announcement in February 2024...

AMG Critical Materials N.V. [NA:AMG] [GR:ADG] ( AMVMF )

AMG Vanadium is a leading provider of products and services for the metals, manufacturing, refinery and petrochemical industries. AMG Vanadium produces ferrovanadium and related ferroalloys from spent refinery catalysts using a proprietary pyrometallurgical process. In January 2023, AMG announced plans to build a Vanadium Electrolyte plant in Germany with production expected to start at the end of 2023.

No vanadium related news this month.

You can view the latest investor presentation here and a Trend investing article here .

Bushveld Minerals Limited [LN-AIM:BMN] ( OTC:BSHVF )

Bushveld is a diversified AIM-listed resources company with a portfolio of vanadium, tin and coal assets in Southern Africa and Madagascar.

On July 28, Bushveld Minerals announced :

Enerox update... Garnet has given notice to VRFB-H that it is exercising the option set out in the RNS dated 12 April 2023 ¹ , to pay to EHL, or directly to its subsidiary, Enerox, US$3,250,000 ² , in return for shares in EHL that will result in Garnet holding 60% of the issued share capital of Enerox and VRFB-H holding the remaining 40%.

On August 2, Bushveld Minerals announced : "Q2 and H1 2023 operational update." Highlights include:

• "Q2 2023 production of 840 mtV (Q2 2022: 668 mtV).
• H1 2023 production of 1,784 mtV (H1 2022: 1,641 mtV).
• Improvement measures implemented at Vanchem.
• Q2 2023 weighted average production cash cost ¹ (C1) of US$27.4/kgV (Q2 2022: US$31.2/kgV).
• H1 2023 weighted average production cash cost ¹ (C1) of US$26.6/kgV (H1 2022: US$28.3/kgV).
• Q2 2023 sales of 1,068 mtV (Q2 2022: 787 mtV), H1 2023 of 2,096 mtV (H1 2022: 1,644 mtV). Supported by reductions in finished product stocks."

2023 Group Guidance

• "Group production guidance for 2023 revised to between 3,700 mtV and 3,900 mtV (previously between 4,200 mtV and 4,500 mtV)..."

On August 9, Bushveld Minerals announced : "Mustang Energy update: Conversion notice...

You can view the latest investor presentation here .

Largo Inc. [TSX:LGO] [GR:LR81] ( LGORF )( LGO )

Largo Inc. is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil as well as a producer of VRFBs.

On August 9, Largo Inc. announced : "Largo reports second quarter 2023 financial results, including further progress on its cost reduction initiatives and commissioning of its ilmenite production as a by-product of its Vanadium operations." Highlights include:

• "Revenues of $53.1 million vs. revenues of $84.8 million Q2 2022; Revenues per pound of V ₂ O ₅ sold ¹ of $9.42 vs. $11.69 per pound sold in Q2 2022, mainly driven by a sharp decrease in V ₂ O ₅ prices during the quarter, which was partially offset by an increase in the Company's high purity vanadium sales.
• ...Cash operating costs excluding royalties per pound ¹ of V ₂ O ₅ equivalent sold of $5.18 vs. $4.23 in Q2 2022.
• Net loss of $6.0 million vs. net income of $18.0 million in Q2 2022; Basic loss per share of $0.09...
• Cash balance of $64.0 million, net working capital ² surplus of $103.1 million and debt of $65.0 million exiting Q2 2023.
• V ₂ O ₅ production 2,639 tonnes (5.8 million lbs ³ ) vs. 3,084 tonnes in Q2 2022 and 2,111 tonnes in Q1 2023; V ₂ O ₅ equivalent sales of 2,557 tonnes vs. 3,291 tonnes in Q2 2022.
• Commissioning of the Company's ilmenite concentration plant has commenced and is expected to be completed in Q3 2023, at which point a gradual ramp-up of ilmenite production in Q4 2023; Ilmenite concentrate will become a by-product of the Company's vanadium operations in Brazil.
• Hot commissioning of Largo Clean Energy's ("LCE") 6.1 megawatt-hour ("MWh") Enel Green Power España ("EGPE") vanadium redox flow battery ("VRFB") deployment remains ongoing, with provisional acceptance by EGPE expected in Q3 2023..."

You can view the latest investor presentation here .

Energy Fuels Inc. [TSX:EFR] ( UUUU )

Energy Fuels state they are "the No. 1 uranium producer in the U.S. with a market-leading portfolio," as well as being a small vanadium producer.

On August 4, Energy Fuels Inc. announced : "Energy Fuels announces Q2-2023 results..." Vanadium Highlights:

• "During the three months ended June 30, 2023, the Company sold no vanadium.
• The Company produces high-purity V ₂ O ₅ from time-to-time when the Mill schedule allows and carries that material in inventory for sale into market strength, including during Q1-2023 when the Company sold approximately 79,344 pounds of V ₂ O ₅ for an average realized sales price of $10.98 per pound.
• The Company currently holds approximately 906,000 pounds of V ₂ O ₅ in inventory..."

Ferro-Alloy Resources [LON:FAR]

FAR is developing the giant Balasausqandiq vanadium deposit in Kyzylordinskaya Oblast of southern Kazakhstan. FAR state: "The ore at this site has a significantly higher grade than all other primary vanadium extraction sites, which allows for much lower processing costs."

On July 27, Ferro-Alloy Resources announced :

Launch of bond programme and listing of first tranche. Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is pleased to announce the launch of a new phased US$20 million exempt offer bond programme valid until 31 July 2033 (the "Programme"). The Company has listed the first tranche of the bonds under the Programme on the Astana International Exchange ("AIX") with the ability to raise up to US$3 million initially.

On August 21, Ferro-Alloy Resources announced :

Trading update.....Vanadium prices have remained depressed compared with prices earlier this year, attributed to the economic slow-down in China resulting in net exports of vanadium from China, although this is likely to be offset by significant demand for vanadium for energy storage batteries.

Western Uranium & Vanadium Corp. ( WSTRF )

Western Uranium & Vanadium Corp. own the Sunday Mine Complex, which is an advanced stage mine property consisting of five interconnected underground mines in Colorado, USA.

No news for the month.

Investors can read the latest quarterly filing here .

Vanadium developers

Neometals [ASX:NMT] ( RDRUY , RRSSF )

Neometals 100% own the Barrambie Titanium Vanadium Iron Project in Western Australia. Barrambie's Eastern Band is one of the highest grade hard rock titanium deposits globally.

On July 28, Neometals announced : "Quarterly activities report for the quarter ended 30 June 2023." Highlights include:

Corporate

• "Cash balance A$24.6 million, investments of A$19.9 million and no debt."

Core Battery Materials Business Units

Vanadium Recovery ("VRP") (72.5% NMT via Recycling Industries Scandinavia AB ("RISAB"), an incorporated JV with Critical Metals Ltd)

• "Ownership in the Finnish Vanadium Recovery Project ("VRP1") JV company increased to 72.5%.
• Financial Investment Decision ("FID") deadline for VRP1 extended until 30th September 2023 to align with approval timelines of banking syndicate led by the European Investment Bank.
• Execution of Glencore offtake agreement for 100% of vanadium products subsequent to quarter end, removing volume risk and satisfying a key condition of debt financiers."

Barrambie Titanium and Vanadium ("Barrambie") (100% NMT)

• "Pre-feasibility study update for direct shipping ("DSO") and mixed gravity concentrate ("MGC") operation delivers ~ NPV 10 over a 13-year operation with a 2.9yr payback at an IRR of 45% p.a.
• Continued negotiations for binding offtake agreement with Jiuxing Titanium and contract mining and crushing contractors to minimize capital outlay and maximize intrinsic value of Barrambie for shareholders."

You can view the latest investor presentation here.

Australian Vanadium [ASX:AVL] [GR:JT71] ( ATVVF )

Australian Vanadium is an emerging vanadium producer focused on their Australian Vanadium Project in Western Australia. VSUN Energy was launched by AVL in 2016 to target the energy storage market for vanadium redox flow batteries [VRFBs].

On July, 28 Australian Vanadium announced : "Quarterly activities report period ending 30 June 2023."

On July 31, Australian Vanadium announced :

Water license approval for processing plant at Tenindewa. Key approval received for the Australian Vanadium Project processing plant site....."

On August 14, Australian Vanadium announced : "Construction of vanadium electrolyte manufacturing facility underway. Long lead time items received and EPC contract awarded." Highlights include:

• "Construction is underway at AVL's vanadium electrolyte facility in Western Australia...
• U.S. Vanadium LLC [USV] proven electrolyte manufacturing technology being deployed, de-risking construction and start-up.
• Facility designed to produce up to 33MWh per year of vanadium flow battery ((VFB)) high purity electrolyte.
• Australian Government grant of $3.69 million co-funding commercial vanadium electrolyte facility development."

You can view the latest investor presentation here , or read a Trend Investing CEO interview here .

Technology Metals Australia [ASX:TMT]

The Company's primary exploration focus is on the 100% owned Gabanintha Vanadium Project located 40km south east of Meekatharra in the mid-west region of Western Australia. Technology Metals Australia has combined the high grade, high quality Yarrabubba deposit with the Gabanintha Vanadium Deposit to form the Murchison Technology Metals Project ((MTMP)).

No vanadium related news for the month.

You can view the latest investor presentation here .

Tivan Limited [ASX:TVN] (formerly TNG Ltd [ASX:TNG]( TNGZF )

Tivan Limited is an Australian resources company focused on the evaluation and development of its Mount Peake Vanadium-Titanium-Iron project. The Mount Peake Project is located 235km north-northwest of Alice Springs in the Northern Territory of Australia. Tivan Limited is well advanced with a massive $4.7b NPV8%, but relies on titanium and iron with a lower grade vanadium by-product. Tivian 100% owns the Speewah Mining Pty Ltd (from King River Resources Limited [ASX:KRR]) the owner of the Speewah Vanadium-Titanium-Iron Project in WA.

On August 9, Tivan Limited announced : "Results of Share Purchase Plan..."

On August 23, Tivan Limited announced :

Update on Speewah Project... the Board of Tivan has resolved to progress a salt roast project at Speewah... Tivan has commenced a comprehensive process to identify and advance key facilitation requirements for the Speewah Project... In support of the commercial strategy for the Speewah Project, Tivan's Executive Chairman Mr. Grant Wilson departs later today for an extensive travel itinerary in Japan, that includes meetings with prominent industrial and trading companies in Tokyo and Osaka, and Japanese public financial institutions.

On August 24, Tivan Limited announced :

Tivan secures 6 month commitment at Middle Arm Sustainable Development Precinct from Northern Territory Government...

You can view the latest investor presentations here .

Vanadium Resources Limited [ASX:VR8] [GR:TR3]

Vanadium Resources is a junior exploration company established with the purpose of exploring and developing gold zinc, lead, copper and other mineral opportunities. Vanadium Resources owns 86.49% of a globally significant vanadium project, the Steelpoortdrift [SPD] Project, in Gauteng Province, South Africa.

For further details see: