BKUCF - Vanadium Miners News For The Month Of February 2023

Summary

• Europe vanadium pentoxide spot prices were higher the past 30 days. China and Europe ferrovanadium prices were higher.
• Vanadium market news - CRU expects vanadium demand to double by 2032, with more than 90% of the demand increase coming from VRFB's.
• Vanadium company news - Bushveld Minerals reported record production for 2022 of 3,842 mtV. Technology Metals Australia announced battery grade vanadium electrolyte produced.
• Tivan signs binding term sheet to acquire 100% of the Speewah Vanadium-Titanium-Iron Project in Western Australia from King River Resources Limited.

Welcome to the Vanadium miners news.

February saw rising vanadium prices and a busy month of news.

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% 1 year chart - Price = USD 10.10/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 45.00/kg , Europe = USD 40.25/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 :

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.

Vanadium demand is projected to surge from 2021 to 2025 ( source )

Global VRFB forecast growth by region 2022-2031

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

Vanadium market news

An eResearch report we missed from December 16 wrote :

Vanadium industry report: Powering the renewable energy revolution. Shift to Renewable Energy Could Trigger a Surge in Demand....... Currently, it is estimated that the VRFB market only accounts for 3%-5% of vanadium production but the continued shift to renewable energy solutions could trigger a surge in vanadium demand and account for 20% of vanadium consumption by 2030.......Various supply-demand forecasts have vanadium in a supply deficit starting around 2025.

On February 15, Yahoo Finance reported :

Vanadium ore global market report 2023. The global vanadium ore market will grow from $2.78 billion in 2022 to $2.97 billion in 2023 at a compound annual growth rate [CAGR] of 6.9%.......The vanadium ore market is expected to grow from $3.76 billion in 2027 at a CAGR of 6.1%.......According to an investing firm (aheadoftheherd.com), around 85% of all automobiles will incorporate vanadium alloy to reduce their weight, thereby increasing their fuel efficiency by 2025.....The use of vanadium redox flow batteries (VRFB's) for energy storage is an emerging trend market. This trend will drive a structural change in the vanadium ore mining market dominated by steel manufacturers.

Note: the "from 3.76 billion" should say to 3.76 billion.

On February 23, MarketWatch reported :

Ferro Vanadium market is booming in near future 2023-2028.....Rising Adoption of [Construction, Automotive and Transportation, Oil and Gas, Aerospace, Others] among businesses drives ferro vanadium market growth.

On February 24, Stockhead wrote :

Q&A: It's Technology Metals' time to shine with vanadium demand set to double by 2032. Vanadium's bread and butter has traditionally been its use in high strength steel but as the world rushes to decarbonise, market analysts believe its use in safe, low-cost energy storage batteries will soon take over....... With a current market of ~110,000 tonnes in 2022, commodity analysts CRU Group expects vanadium demand to double by 2032, owing more than 90% of this growth to its use in Vanadium Redox Flow Batteries (VRFBs) .......CRU Group reckons vanadium demand from batteries will grow from 2.1% in 2021 to 33% in 2030.

Note: Bold emphasis by the author.

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

Vanadium miner news

Vanadium producers

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

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

On February 1 Glencore announced : "Full year 2022 production report." No mention of vanadium production; however on Glencore's website they state 2022 vanadium pentoxide production from own assets was 19.8 mlb.

AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] ( OTCPK: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.

On February 22, AMG Advanced Metallurgical Group NV announced : "AMG's low-cost lithium operations drive AMG to record-setting full year earnings." Highlights include:

Vanadium

• "AMG finalized the completion of the new vanadium spent catalyst recycling facility in Zanesville, Ohio. Operations began on October 29, 2022, and we are targeting full production capacity in the second quarter of 2023.
• Shell & AMG Recycling B.V. ("SARBV") is advancing its projects in the Middle East, in particular the first phase of the Supercenter project based on long-term supply agreements with Saudi Arabian Oil Company ("Aramco"). Plant design optimization, site selection and permitting activities are progressing and the FEL3 partnering with Hatch began in December 2022.
• AMG LIVA put its first industrial battery - the Hybrid Energy Storage System ("HESS") - into fully automatic operation mode in AMG Graphite's plant in Hauzenberg in November 2022.
• AMG LIVA sold its first HESS to a third party in December 2022 to Wipotec GmbH, a leading global provider of intelligent weighing and inspection technology located in Southern Germany. The battery will be integrated into the facility's power system.
• In January 2023, AMG approved building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte. Basic engineering for the plant was completed in November, CAPEX is expected to be $15 million, and production is expected to start at the end of 2023."

Financial Highlights

• "Revenue increased by 18% to $390 million in the fourth quarter of 2022....On a full year basis, revenue increased by 36%.
• EBITDA was $104 million in the fourth quarter of 2022, up 137% versus the fourth quarter 2021.....Full year EBITDA of $343 million is 151% higher than the prior year.....
• Cash flow from operations was $168 million for full year 2022, compared to $91 million in 2021, driven by the high profitability of AMG Lithium in Brazil.
• Net income attributable to shareholders for full year 2022 was $188 million, yielding $5.73 diluted earnings per share compared to $0.44 in 2021.
• AMG's liquidity as of December 31, 2022 was $532 million, with $346 million of unrestricted cash and $186 million of revolving credit availability.
• The total 2022 dividend proposed is €0.70 per ordinary share, including the interim dividend of €0.30, paid on August 10, 2022."

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 January 31, Bushveld Minerals Limited announced : "Full year 2022 operational update and 2023 guidance." Highlights include:

• "Record production for the 12M 2022 of 3,842 mtV (12M 2021: 3,592 mtV), slightly below the revised guidance range of 3,900 mtV - 4,100 mtV as a result of the continued impact of electricity load shedding at Vanchem. Vametco's production of 2,705 mtV exceeded the upper end of guidance of 2,550 mtV - 2,650mtV. Vanchem lost approximately 200 mtV during H2 2022 due to electricity load shedding.
• Record production for Q4 2022 of 1,184 mtV (Q3 2022: 1,016 mtV) with both Vanchem and Vametco reporting quarter-on-quarter increases.
• Weighted average production cash cost ¹ (C1) for 12M 2022 of US$27.7/kgV (12M 2021: US$26.1/kgV).

• Weighted average production cash cost ¹ (C1) for Q4 2022 of US $25.1/kgV (Q3 2022: US$28.90/kgV)."

On February 21, Bushveld Minerals Limited announced :

Bushveld Electrolyte Company update following media report.....The Company would like to clarify that whilst cold commissioning of the electrolyte manufacturing facility has commenced, hot commissioning and production is, as previously advised, due to be completed in H1 2023.....

You can view the latest investor presentation here .

Largo Inc. [TSX:LGO] [GR:LR81] ( LGORF )(NASDAQ: 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 February 17, Largo Inc. announced : "Largo to release Fourth Quarter and Annual 2022 financial results on March 9, 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 February 15 Energy Fuels Inc. announced :

Energy Fuels completes sale of Alta Mesa Property to enCore Energy for total gross proceeds of $120 million.

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 January 30 Ferryo-Alloy Resources announced :

Trading & operational update and grant funding.....The Company's wholly owned Kazakhstan subsidiary, TOO Firma Balausa ("Balausa"), is to receive grant funding of KZT300 million (approximately US$638,000) (the "Grant") for the development of technology for the production of mixed vanadium oxides for use in vanadium redox flow batteries ("VRFBs")..... The main activity in 2023 will continue to be the completion of the feasibility study into the giant Balasausqandiq vanadium project, expected in Q4 2023.

Western Uranium & Vanadium Corp. ( OTCQX: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 company presentation here .

Vanadium developers

Neometals [ASX:NMT] ( OTCPK:RDRUY ) ( OTCPK: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 January 31 Neometals announced : "Quarterly activities report for the quarter ended 31 December 2022." Highlights include:

Core Battery Materials Business Units

Vanadium Recovery ("VRP") (earning into 50:50 JV with Critical Metals Ltd)

• Feasibility Study and Life Cycle Assessment (carbon footprint) activities materially complete with results expected MarQ 2023, subject to execution of SSAB Slag agreement for additional 'Slag' (feedstock).
• Environmental permit secured from the Regional State Administrative Agency for Southern Finland.
• Nordic investment bank, Aventum Partners, appointed to lead debt finance process.
• Formal agreements to formalise Neometals 50% interest in VRP1 and technology license for the project's incorporated joint venture company are targeted for MarQ 2023 execution."

Upstream - Mineral Extraction Barrambie Titanium and Vanadium Project ("Barrambie") (100% NMT)

• "Successful commercial-scale smelting trials on blends of Barrambie mineral concentrates produced premium quality chloride grade titanium Slag.
• Completion of Class 4 PFS for production of titanium (ilmenite) and iron-vanadium concentrate delivered compelling financial metrics. Confirmed the viability of commercialising Barrambie with potential to supply in excess of 500,000 tpa of high-quality supply constrained ilmenite in the first 10 years of the project.
• Neometals continues to advance its offtake negotiations with MOU partner Jiuxing Titanium and assess the optimal strategy and structure to return Barrambie value to 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 January 30 Australian Vanadium announced : "Quarterly activities report period ending 31st December 2022." Highlights include:

Australian Vanadium Project

• "Mineral Resource classification upgrade drilling completed.
• Appointment of Primero Group and GR Engineering Services to undertake a dual-party Early Contractor Involvement process for the Crushing, Milling and Beneficiation plant Engineering, Procurement and Construction package.
• Road reserve closure approved by Shire of Meekatharra for the minesite area.
• Critical minerals collaboration signed with Neometals.
• Offtake and project finance discussions progressing."

Vanadium in Energy Storage

• "Factory Acceptance Testing of VSUN Energy's VRFB-based standalone power system for IGO's Nova Nickel Operation currently underway.
• Proprietary residential battery design underway."

Corporate

• "CEO Graham Arvidson appointed.
• Trading of AVL shares commenced on USA OTCQB market.
• R&D Tax Incentive refund of $618,904 received.
• $6.1M (net of costs) received from exercise of options (exercise price $0.025, expiry 18/12/22).
• Cash position of $27.2M as at 31st December 2022."

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 is studying ("Integration Study") to combine the high grade, high quality Yarrabubba deposit with the Gabanintha Vanadium Deposit to form the Murchison Technology Metals Project (MTMP).

On January 31, Technology Metals Australia announced : "Quarterly activities report for the three months ended 31 December 2022." Highlights include:

• "Memorandum of Understanding executed with Tata Steel for potential joint development of ferrovanadium production facilities as well as potential investment into the MTMP or TMT.
• Upgrade to global Mineral Resource Estimate for MTMP delivers a 26% increase to the Measured and Indicated Resource categories.
• Letter of Interest for financing support of around A$150 million for the MTMP received from EKF, Denmark's Export Credit Agency.
• Vanadium electrolyte projects progressing with Japanese technology partner LE System Co., Limited and the Future Battery Industries Cooperative Research Centre.
• Implementation phase progressing with data received from the commercial competitive tendering process being verified and evaluated."

On February 14, Technology Metals Australia announced : "Battery grade vanadium electrolyte produced. MTMP ore to electrolyte pathway confirmed." Highlights include:

• "Vanadium electrolyte produced using high purity feedstock sourced from Technology Metals 100% owned Murchison Technology Metals Project (MTMP).
• High quality electrolyte meets specifications of major global Vanadium Redox Flow Battery (VRFB) manufacturers.
• Initial performance testing demonstrated very positive results and compared favourably to commercially available vanadium electrolytes.
• Developing the MTMP to meet the increasing vanadium demand forecast for the rapidly growing long duration energy storage markets."

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.

On February 14 Tivan Limited announced : "Tivan announces return to the Middle Arm Sustainable Development Precinct for TIVAN® Processing Facility." Highlights include:

• "TIVAN® Processing Facility to return to Middle Arm in Darwin.
• Board fully committed to heightened stakeholder, regulatory and community engagement.
• Darwin office to commence in February.
• Green hydrogen initiative terminated.
• Project review to continue through March quarter."

On February 20, Tivan Limited announced : "Tivan signs Binding Term Sheet to acquire 100% of the Speewah Vanadium-Titanium-Iron Project in Western Australia." Highlights include:

• "Tivan signs Binding Term Sheet to acquire 100% of the Speewah Vanadium-Titanium-Iron Project in Western Australia from King River Resources Limited (ASX: KRR).
• Consideration of A$20 million, comprised of $10m in staged cash payments, and $10m in ordinary fully paid shares in Tivan.
• The Speewah Project holds the largest reported vanadium in titanomagnetite resource in Australia, containing JORC compliant Measured, Indicated and Inferred Resources of 4.7 billion tonnes at 0.30% V2 O 5 , 14.7% Fe and 3.3% TiO 2 (0.23% V2 O 5 cut-off grade), and is the largest 'drilled' JORC resources of its kind in the world.
• Magnetite concentrates produced from Speewah contain some of the highest vanadium grades of any titanomagnetite resource globally.
• The acquisition includes all mining tenements, mining information (including previous studies and testwork completed) and all related intellectual property.
• Speewah is considered amenable to processing with the Company's 100% owned patented processing technology for titanomagnetite ore bodies, the TIVAN® Process.
• At completion, the Company will own two large titanomagnetite deposits, providing crucial impetus for its planned TIVAN® Processing Facility at Middle Arm in Darwin."

You can view the latest investor presentations here .

King River Resources [ASX:KRR]

King River holds 785 square kilometres of mineral leases covering a unique geological feature in the Eastern Kimberley of Western Australia, called the Speewah Dome. The company state on their website: "The focus of King River Copper Limited is the exploration for Gold, Silver and Copper." However their deposits also contain vanadium. Binding Term Sheet for sale of 100% of the Speewah Vanadium-Titanium-Iron Project signed with Tivan Limited [ASX:TVN].

On February 20 King River Resources announced : "Binding Term Sheet for sale of 100% of the Speewah Vanadium-Titanium-Iron Project."

You can view the latest investor presentation 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 74% of a globally significant vanadium project, the Steelpoortdrift [SPD] Project, in Gauteng Province, South Africa.

On January 31 Vanadium Resources Limited announced : "Activities report - December quarter 2022." Highlights include

• "Definitive Feasibility Study1 and updated Mineral Resource and Ore Reserve estimates released for the Steelpoortdrift ("SPD") Project.

• Mineral Resources now amounts to 680Mt (2.7% increase) at 0.70% vanadium pentoxide ("V2O5") at a cut-off grade of 0.45% V2O5 - the Measured Mineral Resources increased by 58% to 145Mt at 0.72% V2O52.
• Ore Reserves total 76.86Mt at 0.72% V2O5 with 30.23Mt of Proven Ore Reserves at 0.70% V2O5 and 46.62Mt of Probable Ore Reserves at 0.72% V2O52.
• Additional LOM of up to 67 years readily available in the designed open pits within a low environmental and social impact inclusion zone, and Life of Mineral Resource in open pit is +180 years at current throughput rates.
• Formal construction funding process ongoing, including advanced level discussions with numerous potential strategics, offtake parties, commodity traders and debt financiers."

You can view the latest investor presentation here .

Vanadiumcorp Resource Inc. [TSXV:VRB][GR:NWN] ( VRBFF )

Vanadiumcorp Resources Inc. 100% owns the Lac Dore Vanadium-Iron-Titanium project in Quebec Canada. The Company also has royalties on the Raglan Nickel-PGM mine . The Company is looking to take a vertically integrated approach and is also developing leading process technologies 'VanadiumCorp-Electrochem Processing Technology' and "Electrochem globally patented Electrowinning" technology.

For further details see:

Vanadium Miners News For The Month Of February 2023