LGO - Vanadium Miners News For The Month Of March 2023

2023-03-30 09:33:06 ET

Summary

• Europe vanadium pentoxide spot prices were lower the past 30 days. China and Europe ferrovanadium prices were lower.
• Vanadium market news - EU Critical Raw Materials Act proposes 10% of critical raw materials mined in Europe by 2030. VRFB market forecast to grow at a CAGR of 24.1%(2022-2030).
• Vanadium company news - Neometals Vanadium recovery project delivers strong feasibility results. Australian Vanadium - Vanadium electrolyte factory to be built in Australia with high hopes for flow batteries.
• Richmond Vanadium Technology signs agreement with Ultra Power Systems on vanadium mining and manufacturing VRFBs.

Welcome to the Vanadium miners news.

March saw rising vanadium prices lower and a slower month of news.

An interesting market report from ResearchAndMarkets.com forecast the Vanadium Redox Flow Battery market to surge with a CAGR of 24.1% from 2022 to 2030. That's a rapid growth rate but may prove to be conservative given the massive need for stationary energy storage at commercial scale level to support solar and wind energy etc.

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 9.60/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 41.50/kg , Europe = USD 39.25/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 (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.

Global VRFB forecast growth by region 2022-2031

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

Large scale global deployments of VRFBs are becoming more common ( source )

Vanadium market news

On March 8 Euractiv reported : "LEAK: EU Commission wants 10% of critical raw materials mined in Europe."

On March 15 Renew Economy reported :

Vanadium electrolyte factory to be built in Australia, with high hopes for flow batteries. Australian Vanadium will build its high purity vanadium electrolyte manufacturing facility in the Perth suburb of Wangara, as the company expects vanadium redox flow ((VFRB)) adoption to surge in Australia. The factory is on track for commissioning in September this year, provided equipment ordered from the vanadium supplier US Vanadium arrives on time. It is also on track to meet the budget expectations made in 2021 of $7.4 million, CEO Graham Arvidson told RenewEconomy .

On March 16 the European Commission announced (emphasis added):

Critical Raw Materials: ensuring secure and sustainable supply chains for EU's green and digital future... The Regulation sets clear benchmarks for domestic capacities along the strategic raw material supply chain and to diversify EU supply by 2030:

• At least 10% of the EU's annual consumption for extraction ,
• At least 40% of the EU's annual consumption for processing ,
• At least 15% of the EU's annual consumption for recycling ,
• Not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing from a single third country...

The proposed Regulation will be discussed and agreed by the European Parliament and the Council of the European Union before its adoption and entry into force.

On March 17 Fastmarkets reported : "EC names critical, strategic raw materials under proposed new act." All the battery metals were included. Vanadium and manganese were included.

On March 22 Yahoo Finance reported :

Global Vanadium Redox Battery Market Report 2023: Intermittent nature of renewable energy favors market adoption...The global market for Vanadium Redox Battery estimated at US$237.5 Million in the year 2022, is projected to reach a revised size of US$1.3 Billion by 2030, growing at a CAGR of 24.1% over the analysis period 2022-2030.

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

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.

No vanadium news for the month.

AMG Advanced Metallurgical Group N.V. [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. 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 February 22 AMG Advanced Metallurgical Group N.V. announced :

AMG’s low-cost lithium operations drive AMG to record-setting full year earnings....AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.

On March 16 AMG Advanced Metallurgical Group N.V. announced : "AMG publishes 2022 Annual Report."

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.

No significant news for the month.

You can view the latest investor presentation here .

Largo Inc. [TSX:LGO] [GR:LR81] (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 March 9 Largo Inc. announced :

" Largo reports fourth quarter and full year 2022 financial results; Highlights recent strength in the vanadium market and progress on its two-pillar strategy as a Tier 1 vanadium supplier and emerging clean energy battery producer ."

Highlights include:

• "Revenues of $47.5 million in Q4 2022, 6% below Q4 2021; Revenues per pound sold ¹ of $7.77 in Q4 2022, largely in line with $7.88 recognized in Q4 2021.
• Operating costs of $44.5 million in Q4 2022 vs. $37.7 million in Q4 2021, and cash operating costs excluding royalties per pound ¹ of V ₂ O ₅ equivalent sold of $5.15 in Q4 2022 vs. $3.68 in Q4 2021
• Net loss of $15.6 million in Q4 2022 vs. net income of $1.0 million in Q4 2021; Basic loss per share of $0.24 in Q4 2022 vs. basic earnings per share of $0.01 in Q4 2021.
• In Q4 2022, the Company’s net loss included approximately $6.3 million of non-recurring expenditures.
• Revenues of $229.3 million in 2022, a 16% increase over 2021; Revenues per pound sold ¹ of $9.38 in 2022, a 19% increase over 2021.....
• Net loss of $2.2 million in 2022 vs. net income of $22.6 million in 2021; Basic loss per share of $0.03 in 2022 vs. basic earnings per share of $0.35 in 2021.
• In 2022, the Company's net loss included approximately $15.0 million of non-recurring expenditures.
• ...Annual V ₂ O ₅ production of 10,436 tonnes in 2022 vs. 10,319 tonnes in 2021 and 6% below lower range of revised production guidance..."

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 March 8 Energy Fuels Inc. announced : "Energy Fuels announces 2022 results; Emerging as the leading US producer of Critical Minerals with focus on uranium and rare earth elements..."

Vanadium Highlights:

• "During 2022, the Company sold approximately 642,000 pounds of existing V ₂ O ₅ inventory (as ferrovanadium, " FeV "), for an average weighted net price of $13.67 per pound of V ₂ O ₅ ."

Ferro-Alloy Resources [LON:FAR]

FAR is developing the giant Balasausqandiq vanadium deposit in Kyzylordinskaya Oblast of southern Kazakhstan. FAR states :

"The ore at this site has a significantly higher grade than all other primary vanadium extraction sites, which allows for much lower processing costs."

No news for the month.

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 March 2 Neometals announced : " Neometals now controlling shareholder in Vanadium Recovery Project SPV." Highlights include:

• " Execution of agreement to formalise Neometals’ 50% ownership in the Vanadium Recovery Project’s incorporated joint venture company, Recycling Industries Scandinavia AB (“RISAB”)......
• Feasibility Study on 300,000tpa operation will be finalised and released in MarchQ 2023.
• RISAB has leading Nordic investment banks managing equity and project financing processes. "

On March 8 Neometals announced : "Vanadium recovery project delivers strong feasibility results." Highlights include:

• " Feasibility Study confirms improved Net Present Value (“NPV”) compared to Preliminary Feasibility Study (“PFS”)1 to recover vanadium pentoxide (“V2O5”) from vanadium-bearing steelmaking by-products in Finland.
• Strategically important average annual production (excluding ramp up) of 19.1 million pounds per annum (~8,655tpa) of potentially carbon negative high-purity V2O5 secured by 10-year supply agreement with Scandinavian steelmaker SSAB.
• Lowest quartile cash cost (US$4.19/pound), excl. royalty, with potential to lower with by-product/carbon credits.
• 40% increase in pre-tax NPV10, to US$323 million compared to PFS1 and pre-tax IRR of 24.8% on 100% ownership basis.
• Final Investment Decision on schedule for June 2023, subject to finance. "

On March 13 Neometals announced : " Half-year report for the 6 months ended 31 December 2022."

On March 17 Neometals announced : " Vanadium Recovery Project advances to formal finance appraisal with European Investment Bank ."

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 March 2 Australian Vanadium announced : "Completion of Co-Operative Research Centre Project. Australian Government funded critical mineral research and development success ." Highlights include:

• " AVL was awarded a $1.25 million Australian Government CRC-P Grant in February 2020.
• Grant partly funded industry-leading critical mineral research aimed at improving vanadium processing efficiency.
• Total research program included $4.9 million in cash and in-kind contributions...
• Major outcome of project was the development of the salt-roast leach flowsheet, with vanadium extractions of 91% demonstrated at pilot scale. "

On March 9 Australian Vanadium announced : " Half year report 31 December 2022 ."

On March 15 Australian Vanadium announced : "Vanadium electrolyte manufacturing facility update. Vanadium electrolyte facility location secured, detailed design completed and long lead equipment ordered ." Highlights include:

• " ... U.S. Vanadium LLC ((USV)) proven electrolyte manufacturing technology will be deployed, de-risking construction and start-up.
• Facility will be capable of producing up to 33MWh per year of vanadium redox flow battery ((VRFB)) high purity electrolyte.
• AVL to be early mover in supply of high purity vanadium electrolyte to the growing Australian long duration energy storage market in which VRFBs will play a key role.
• Australian Government grant of $3.69M to co-fund 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).

On March 14 Technology Metals Australia announced : " Interim condensed consolidated financial report 31 December 2022."

On March 27 Technology Metals Australia announced :

RCF makes further investment into Murchison Vanadium strategy.....RCF is now the largest shareholder of both TMT and AVL based on public disclosures.

Note: RCF is the Resource Capital Fund VII L.P.

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. Tivan plans to acquire Speewah Mining Pty Ltd (from King River Resources Limited [ASX:KRR]) the owner of the Speewah Vanadium-Titanium-Iron project in WA.

On March 2 Tivan Limited announced :

Update on Binding Term Sheet to acquire 100% of the SpeewahVanadium-Titanium-Iron Project in Western Australia.....The Company advises that it has now received a geological assessment prepared by SRK Consulting (Australasia) Pty Ltd (“SRK”) of the Project’s reported Mineral Resources, which Tivan considers satisfies the condition precedent under the Binding Term Sheet for an independent geological assessment which finds no material error in the Project’s Mineral Resources as reported to ASX (refer to ASX announcement of 20 February 2023 for further details).

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 74% of a globally significant vanadium project, the Steelpoortdrift [SPD] Project, in Gauteng Province, South Africa.

On March 14 Vanadium Resources Limited announced : "Financial report for the half-year ended 31 December 2022."

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.

No significant news for the month.

You can view the latest investor presentation here.

Richmond Vanadium Technologies Pty Ltd [ASX: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 February 28 Richmond Vanadium Technologies Pty Ltd announced : " RVT signs formal Subscription Agreement with Ultra Power Systems." Highlights include:

• " Richmond Vanadium Technology ((RVT)) and Ultra Power Systems ((UPS)) have executed an agreement to form a joint alliance to develop both vanadium mining and vanadium redox flow battery manufacturing....."

On March 6 Richmond Vanadium Technologies Pty Ltd announced : " Interim financial report for the half-year ended 31 December 2022 ."

Phenom Resources Corp. [TSXV:PHNM] ( OTCQX: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).

No news for the month.

Investors can read the latest company presentation here .

Graphite miners with potential vanadium projects

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

Other listed vanadium juniors

• BlackRock Metals (Private)
• Blue Sky Uranium [TSXV:BSK] ( BKUCF )
• Currie Rose Resources Inc. [TSXV:CUI]
• Gladiator Resources [ASX:GLA]
• Golden Deeps [ASX:GED]
• Intermin Resources [ASX:IRC]
• Maxtech Ventures [CSE:MVT]
• New Energy Minerals [ASX: NXE]
• Pursuit Minerals [ASX:PUR]
• QEM Limited [ASX:QEM]
• Sabre Resources [ASX:SBR]
• Strategic Resources [TSXV:SR] ( SCCFF )
• Trigon Metals Inc. [TSXV:TM] ( OTC:PNTZF )
• Voyager Metals Inc. [TSXV:VONE][GR:9VR1] ( OTC:VDMRF )
• Venus Metals [ASX:VMC]
• Victory Metals [TSXV:VMX].

VRFB Companies

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

Conclusion

March saw lower V2O5 prices and lower ferrovanadium prices.

Highlights for the month include:

• EU Critical Raw Materials Act proposes 10% of critical raw materials mined in Europe by 2030. Vanadium is on the critical materials list.
• Vanadium electrolyte factory to be built in Australia, with high hopes for flow batteries.
• The global market for Vanadium Redox Battery estimated at US$237.5M in the year 2022, is projected to reach a revised size of US$1.3B by 2030, growing at a CAGR of 24.1%.
• Largo Inc. reports net loss of $2.2M in 2022 vs. net income of $22.6M in 2021; the 2022 loss included approximately $15.0M of non-recurring expenditures.
• Neometals Vanadium recovery project delivers strong feasibility results.
• Australian Vanadium - Vanadium electrolyte facility location secured, detailed design completed and long lead equipment ordered .
• Tivan Limited progresses plans to acquire Speewah Mining Pty Ltd (from King River Resources Limited [ASX:KRR]) the owner of the Speewah Vanadium-Titanium-Iron project in WA.
• Richmond Vanadium Technologies signs agreement with Ultra Power Systems on vanadium mining and manufacturing VRFBs.

For further details see:

Vanadium Miners News For The Month Of March 2023