PNTZF - Vanadium Miners News For The Month Of July 2023

2023-07-31 15:24:39 ET

Summary

• Europe's vanadium pentoxide spot prices were slightly higher the past 30 days. China and Europe ferrovanadium prices were slightly higher.
• Vanadium market news - CRU Group expects vanadium demand to double by 2032, 90% of the growth to come from VRFBs. China is a key driver of demand.
• Vanadium company news - Largo reports improvements to production in Q2, 2023 (from Q1, 2023). Neometals executes Vanadium Recovery Project Offtake with Glencore.
• Australian Vanadium (VSUN Energy) signs contract for Horizon Power to purchase VFB for long-duration energy storage pilot. Phenom Resources Corp. signs an Offtake Agreement with Japanese Vanadium Solid-State Battery Company and gains a 5% equity interest.

Welcome to the Vanadium miners news.

July saw several vanadium companies sign vanadium off-take deals and one sign a contract to sell VRFBs. These are positive signs that there is strong demand for vanadium and a growing demand for VRFBs.

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 7.60/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 32.80/kg , Europe = USD 32.30/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.

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 June 29 Stockhead reported :

Vanadium use in redox flow batteries is on the rise – these are the Aussie stocks with a horse in the race...... With a 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) ......energy storage actually became the second-largest consumer of vanadium in 2022 for the first time.

Note: Bold emphasis by the author.

On July 17 Investing News reported :

Vanadium Market Update: H1 2023 in Review.......A key catalyst to keep an eye on is what stimulus China adopts in the coming weeks and months. “If nothing tangible is announced, Chinese steel production may well show a year-on-year decline in 2023 vs the 1,013 million tonnes produced in 2022"......For the rest of the world, the expert expects the picture to remain unchanged in the second half, with economies on the brink of recession, higher interest rates and a core sticky inflation...... Demand will continue to rise in the battery sector as more battery projects continue to take up all the electrolyte production available,” Thomas said. “2024 will see increased gains in electrolyte capacity, driving new demand for vanadium oxides.” Estimates from Project Blue show that the battery sector used about 5,000 metric tons of vanadium in 2022 versus 2,900 metric tons in 2021, with the bulk coming from China. “We believe that the VRFB’s market share in battery energy storage will remain at about 1 percent in the coming years, with most of the demand growth coming from China’s new installations"......

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 July 21 Glencore announced :

Half-year production report 2023. Full year production guidance remains unchanged from that presented in Glencore's Q1 2023 production report and December 2022 investor update.....

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.

On July 26 AMG Critical Materials announced :

AMG’s lithium operations continue to drive record earnings with the fourth straight quarter exceeding $100 million of EBITDA.....

Vanadium

• "The new vanadium spent catalyst recycling facility in Zanesville, Ohio, is currently running at full capacity and targeting full run rate production for the second half of 2023.
• AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are under various stages of construction.
• In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
• Shell & AMG Recycling B.V. (“SARBV”) project development in the Middle East are progressing. The Supercenter project in the Kingdom of Saudi Arabia is completing the FEL3 feasibility study later this year.

AMG Vanadium’s production was negatively impacted by a defective fan provided by a supplier at our new Zanesville facility. AMG has commenced an arbitration claim seeking compensatory damages, which include costs incurred and lost profitability."

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

Bushveld Minerals Limited [LN-AIM:BMN] ( 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 14 Bushveld Minerals announced :

Convertible loan note update.....announces that the Company and Primorus Investments Plc ("Primorus") have agreed in principle to alter the terms of the BMN Convertible Loan Note ("BCLN"), details of which were first announced on 19 January 2022. As at the Maturity Date, being 14 July 2023, the total principal amount and accrued interest of the outstanding BCLN held by Primorus is approximately £910,000.

You can view the latest investor presentation here .

Largo Inc. [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 July 19 Largo Inc. announced : " Largo reports improvements to production in Q2 2023 and begins commissioning of its Ilmenite Concentration Plant; Francesco D’Alessio Appointed as President of Largo Clean Energy." Highlights include:

• "V ₂ O ₅ production of 2,639 tonnes (5.8 million lbs ¹ ) in Q2 2023 vs. 3,084 tonnes produced in Q2 2022 and 25% above production in Q1 2023.
• V ₂ O ₅ production of 676 tonnes in April, 945 tonnes in May and 1,018 tonnes in June.
• The Company achieved normalized production levels in June....
• The Company completed all planned upgrades to its crushing process in Q2 2023, including the installation of a new dry magnetic separator and updates to its crushing circuit, which is expected to reduce operational maintenance costs and provide more flexibility in the blending of different ores to stabilize V ₂ O ₅ production going forward.
• Global V ₂ O ₅ recovery rate ³ of 81.0% in Q2 2023 vs. 81.8% in Q2 2022.
• The Company completed construction of its ilmenite concentration plant in June and subsequently began commissioning of the facility shortly thereafter; The Company expects to complete the commissioning phase in Q3 2023 and start a gradual ramp-up of ilmenite production in Q4 2023.
• V ₂ O ₅ equivalent sales of 2,557 tonnes in Q2 2023 vs. 3,291 tonnes sold in Q2 2022 due to lower available inventory.
• During Q2 2023, the average benchmark price per lb of V ₂ O ₅ in Europe was $8.46, a 24% decrease from the average of $11.08 seen in Q2 2022 following softer spot market demand during the quarter, primarily due to adverse conditions in the Chinese and European steel sectors.
• Francesco D’Alessio was appointed as President of Largo Clean Energy (“LCE”).
• Cold commissioning of LCE’s Enel Green Power España (“EGPE”) vanadium redox flow battery (“VRFB”) was completed in Q2 2023; Hot commissioning and provisional acceptance by EGPE is expected in Q3 2023.
• 2023 production, sales, cost and capital expenditures guidance remain unchanged."

On July 26 Largo Inc. announced : " Largo publishes 2022 sustainability report....."

You can view the latest investor presentation here.

Energy Fuels Inc. [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.

No news for the month.

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 17 Ferro-Alloy Resources announced : "Existing operation H1 production results." Highlights include:

• "All factory upgrades previously announced, focussed on increasing production and recovering more value from each tonne treated, now completed and in operation.
• Following these upgrades, Q2 2023 was the best production quarter achieved by the Group to date in terms of both tonnes of concentrates treated and tonnes of metal recovered across all product lines....."

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 company presentation 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 June 30 Neometals announced : "Vanadium recovery project update." Highlights include:

• "JV Shareholders to the Neometals vanadium recovery project have extended the project Financial Investment Decision (“FID”) deadline until 30th September 2023.
• Project level equity finance attracting good interest from Nordic and International investors.
• Due diligence by debt financing club, led by European Investment Bank, also progressing favorably."

On July 12 Neometals announced : "Vanadium recovery project Offtake executed with Glencore." Highlights include:

• "Agreement for the guaranteed offtake for 100% of vanadium products produced by Vanadium Recovery Project (“VRP1”) secured with leading commodities producer and marketer, Glencore International AG (“Glencore”).
• Demonstrates the market demand for high-purity, carbon-neutral vanadium pentoxide (“V2O5”) produced in the European Union (“EU”) from EU raw materials.
• Glencore will provide technical expertise to the project given its deep vanadium operating experience at the Rhovan Mine in South Africa."

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 : "Horizon Power to purchase VFB for long duration energy storage pilot. VSUN Energy vanadium flow battery project for high renewable energy penetration." Highlights include:

• "Western Australian regional energy provider Horizon Power has entered into a contract with VSUN Energy to purchase its first vanadium flow battery (VFB) for a long duration storage pilot in regional Western Australia.
• VSUN Energy to purchase, install and commission the VFB for Horizon Power in Kununurra, northern Western Australia.
• Project will increase understanding of VFB use for long duration energy storage and fossil fuel reduction scenarios in Horizon Power’s microgrids across regional and remote Western Australia.
• Battery to be supplied by leading global VFB manufacturer Invinity Energy Systems plc (AIM: IES)."

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)).

On July 19 Technology Metals Australia announced : "Quarterly activities report for the three months ended 30 June 2023." Highlights include:

• "MOU signed with Indian Vanadium Battery ((VRFB)) maker Delectrik Systems Pvt. Ltd deepening ties with India and broadening the potential customer base.
• Key project partners GR Engineering and Iron Mine Contracting working with TMT project team and FLSmidth to progress FEED activities for MTMP Implementation phase.
• Independent Technical Expert ((ITE)) review process underway in support of MTMP funding.
• On country engagements with Traditional Owner knowledge holders and EPA team.
• Placement secured $11.5 million from existing and new strategic and institutional investors, including cornerstone investor Resource Capital Funds (RCF VII)."

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 June 30 Tivan Limited announced :

Project development strategy update; Prioritization of Speewah......The Board noted the strong appeal of the Speewah Project - the quality, size and proximity to port of the Speewah resource, along with its proximity to Darwin – and the strategic commercial opportunity it represents for the Company given its higher vanadium in concentrate grade and scope to upscale throughput....

On July 12 Tivan Limited announced : "Tivan receives commitments for $5 million Placement and launches Share Purchase Plan....."

On July 13 Tivan Limited announced : "Tivan signs Heads of Agreement with Cambridge Gulf Limited, operator of the Wyndham Port in Western Australia....."

On July 13 Tivan Limited announced : "Half-year update details....."

On July 20 Tivan Limited announced : "Environmental Works Programinitiated for Speewah Project....."

On July 25 Tivan Limited announced : "June 2023 quarterly activities report."

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.

On July 18 Vanadium Resources Limited announced : "VR8 update to subscription agreement."

On July 25 Vanadium Resources Limited announced : "Activities report – June quarter 2023." Highlights include:

• "VR8 entered into Agreements to increase its interest in the Steelpoortdrift Vanadium Project from 73.95% to 86.49%.
• Completed A$5.91M strategic placement to Matrix Resources (Zhejiang) Co., Ltd (“Matrix”) at an issue price of $0.11 per share, a ~40% premium to the 30-day VWAP.
• Exclusivity granted to Matrix to negotiate an offtake, aimed at the Asian markets, of 40% of Vanadium Products produced from the Phase 1 operations of the Steelpoortdrift Vanadium Project over a 10-year term.
• Key Project work streams continued during the quarter as the Company focusses on moving towards front-end engineering design (“FEED”) and getting the Project construction ready.
• Strong interest continues to be received from financing and offtake parties, with further non-binding indicative term sheets and expressions of interest provided."

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.

On July 7, VanadiumCorp Resources Inc. announced : "Vanadiumcorp announces grant of Stock Options....."

You can view the latest investor presentation here.

Richmond Vanadium Technology [ASX:RVT] ("RVT")

RVT now owns 100% of the Richmond Vanadium Project. It has a global Mineral Resource of 1.8Bt @ 0.36% Vanadium Pentoxide (V2O5) .

On July 18 Richmond Vanadium Technologies Pty Ltd announced : "Quarterly activities report for the period ending 30th June 2023." Highlights include:

• "DRA Global appointed as engineering consultant for the Richmond – Julia Creek Vanadium Project’s Bankable Feasibility Study [BFS].
• Metallurgical sample drill program completed at the Richmond – Julia Creek Vanadium Project with samples to be used for independent testing of RVT’s patent pending process flowsheet.
• Richmond – Julia Creek Vanadium Project’s Terms of Reference [TOR] for Environmental Impact Statement [EIS] finalized by the Queensland Government.
• BFS and EIS for Richmond – Julia Creek Vanadium Project to run in parallel until Q4 2024.
• The globally recognized World Economic Forum ESG framework adopted by RVT as part of integrated ESG strategy.
• Technology platform Socialsuite engaged to monitor and disclose ESG progress and initiatives."

Phenom Resources Corp. [TSXV:PHNM] ( PHNMF ) (formerly First Vanadium Corp.)

The Carlin Gold-Vanadium Property hosts one of North America’s largest richest primary vanadium deposits, located in Nevada. Its West Jerome project targets a large scale high grade copper and zinc deposit in Arizona. Carlin has a Historic Inferred Resource 28Mt at 0.525% V2O5 (2010 SRK).

On July 12 Phenom Resources Corp. announced : "Phenom announces 85% of Warrants Exercised - Recently receiving $1,236,586....."

On July 24 Phenom Resources Corp. announced : "

Phenom signs Offtake Agreement with Japanese Vanadium Solid-State Battery Company and gains a 5% equity interest.....Paul Cowley, President & CEO of Phenom states, "According to MK Plus records, their market valuation on May 11, 2023 was $83.85 million which places Phenom's 5% equity interest in MK Plus valued at $4.23 million. This new value-added for Phenom will increase as MK Plus grows and succeeds. It is exciting to now have a broader position of the growing battery chain future."

Investors can read the latest company presentation here .

Graphite miners with potential vanadium projects

• Syrah Resources [ASX:SYR] ( SYAAF ) ( SRHYY )
• NextSource Materials [NEXT]
• DNI Metals [DNI] [GR:DG7N]( DMNKF )

Other listed vanadium juniors

• BlackRock Metals (Private)
• Blue Sky Uranium [BSK] ( BKUCF )
• Critical Minerals Group [ASX:CMG]
• Currie Rose Resources Inc. [CUI]
• Gladiator Resources [ASX:GLA]
• Golden Deeps [ASX:GED]
• Intermin Resources [ASX:IRC]
• Manuka Resources [ASX:MKR]
• Maxtech Ventures [CSE:MVT]
• New Energy Minerals [ASX: NXE]
• Pursuit Minerals [ASX:PUR]
• QEM Limited [ASX:QEM]
• Sabre Resources [ASX:SBR]
• Santa Fe Minerals [ASX:SFM]
• Strategic Resources [SR] ( SCCFF )
• Surefire Resources [ASX:SRN]
• Trigon Metals Inc. [TM] ( PNTZF )
• UVRE [ASX:UVA]
• Venus Metals [ASX:VMC]
• Victory Metals [VMX]

VRFB Companies

• Protean Energy [ASX:POW] [GR:SHE1]
• Enerox GmbH ( 90% Bushveld/ 10% Cellcube Energy Storage Systems)
• Invinity Energy Systems (IES) ( IVVGF ) ( IESVF )

Conclusion

July saw V2O5 prices and ferrovanadium prices slightly higher.

Highlights for the month include:

• For vanadium (mostly used in steel) - A key catalyst to keep an eye on is what stimulus China adopts in the coming weeks and months. Demand will continue to rise in the battery sector as more battery projects continue to take up all the electrolyte production available.
• CRU Group expects vanadium demand to double by 2032, 90% of the growth to come from VRFBs. Energy storage actually became the second-largest consumer of vanadium in 2022 for the first time.
• AMG Vanadium’s production was negatively impacted by a defective fan provided by a supplier at our new Zanesville facility.
• Largo reports improvements to production in Q2, 2023 (from Q1, 2023) and begins commissioning of its Ilmenite Concentration Plant. Achieves V ₂ O ₅ production of 2,639 tonnes in Q2 2023.
• Ferro-Alloy Resources achieves their best production quarter in Q2, 2023.
• Neometals executes Vanadium Recovery Project Offtake with Glencore.
• Australian Vanadium (VSUN Energy) signs contract for Horizon Power to purchase VFB for long duration energy storage pilot.
• Tivian Limited Board decides to prioritize the Speewah Vanadium-Titanium-Iron Project.
• Phenom Resources Corp. signs Offtake Agreement with Japanese Vanadium Solid-State Battery Company and gains a 5% equity interest.

For further details see:

Vanadium Miners News For The Month Of July 2023