TNGZF - Vanadium Miners News For The Month Of May 2023

2023-05-31 12:58:55 ET

Summary

• Europe vanadium pentoxide spot prices were lower the past 30 days. China and Europe ferrovanadium prices were lower.
• Vanadium market news - Global supply of vanadium electrolyte is however currently very tight. VRFBs have many advantages over other stationary energy storage types.
• Vanadium company news - Bushveld Minerals has completed construction and cold commissioning of the BELCO electrolyte plant.
• Neometals Barrambie Titanium and Vanadium DSO Project PFS update - NPV (pre-tax) of A$374.9m and IRR of 45%. Australian Vanadium A$49 Million Government Grant Agreement executed.

Welcome to the Vanadium miners news.

May saw somewhat depressed vanadium prices that are hurting producers and not incentivizing juniors. Despite this the vanadium juniors continue to progress.

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 7.40/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 33.00/kg, Europe = USD 32.40/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 May 22 Energy Storage News reported (emphasis added):

Vanadium electrolyte: the ‘fuel’ for long-duration energy storage......For vanadium electrolyte the major producer is currently China, which also consumes a lot of that electrolyte for its own VRFB installations. US Vanadium LLC [USV] in Arkansas, USA, supplies the highest purity vanadium electrolyte produced in the world and has a current capacity of 4 million litres per year, which equates to approximately 60MWh equivalent. USV has an agreement with Europe-headquartered VRFB manufacturer CellCube to supply up to 3 million litres of that electrolyte. In the UK, Oxkem is another electrolyte supplier. It has the capacity to manufacture in excess of 3 million litres per year. Global supply of vanadium electrolyte is however currently very tight ......Vanadium electrolyte’s characteristics mean that VRFBs have the advantage over other energy storage mediums of being non-flammable and not having any degradation of performance over the battery’s lifespan. VRFB manufacturers are generally offering 25-year warranties on their batteries. With good maintenance of pumps and other mechanical elements, they could last a lot longer.

Note: Bold emphasis by the author.

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 May 22 Glencore announced : "Glencore publishes 2022 sustainability report."

AMG Advanced Metallurgical Group NV [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 May 3 AMG Advanced Metallurgical Group NV announced : "AMG’s lithium operations continue to drive record earnings." Highlights include:

Strategic Highlights

Vanadium

• "The new vanadium spent catalyst recycling facility in Zanesville, Ohio, continues to progress, with the roaster operating at its design capacity and the melt shop targeting full production capacity later in the second quarter of this year.
• AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are being executed as planned.
• AMG has completed the expansion of its vanadium oxide (“V ₂ O ₅ ”) production in Nuremberg, either using gasification ash or spent catalyst as alternative feed. V ₂ O ₅ is increasingly destined for the LIVA battery market.
• 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”) continues to advance its projects in the Middle East including the first phase of the Supercenter project based on long-term supply agreements with ARAMCO. Front end engineering design for the first phase of the project, the conversion of gasification ash into V ₂ O ₅ , began in late 2022 and will be completed in the fourth quarter of 2023."

Financial Highlights

• "Revenue increased by 12% to $451 million in the first quarter of 2023 from $404 million in the first quarter of 2022.
• EBITDA was $118 million in the first quarter of 2023, up 116% versus the first quarter 2022 EBITDA of $55 million......
• Cash from operating activities was $93 million in the first quarter of 2023, an increase of $97 million over the same period in 2022.
• Net income attributable to shareholders for the first three months of 2023 was $56 million, yielding $1.72 diluted earnings per share compared to $0.89 for the same period in 2022.
• AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability.
• The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023."

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 April 27 Bushveld Minerals announced : "Q1 2023 operational update, Vametco Mineral Reserve and Resource and Lemur Mineral Resource." Highlights include:

• "Production for Q1 2023 of 943 mtV (Q1 2022: 973 mtV).
• Weighted average production cash cost ¹ (C1) for Q1 2023 of US$25.9/kgV (Q1 2022: US$26.6/kgV).
• Increase in sales for Q1 2023 of 1,028 mtV (Q1 2022: 857 mtV), owing to increased sales out of inventory.
• Secured a third-party low-silica feed for Vanchem to support more stable production rates at no additional cost.
• Completed construction and cold commissioning of the BELCO electrolyte plant."

2023 Group Guidance

• "Group production guidance for 2023 maintained at between 4,200 mtV and 4,500 mtV......"

On May 5 Bushveld Minerals announced : "Proposed convertible loan note refinancing."

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 May 10 Largo Inc. announced : " Largo reports first quarter 2023 financial results and provides update to 2023 operational and sales outlook." Highlights include:

Q1 2023 and Other Highlights

• "Revenues of $57.4 million, a 35% increase over Q1 2022, mainly due to greater sales quantities at a higher revenue per lb sold ¹ ; Revenues per pound sold ¹ of $9.14, a 5% increase over Q1 2022.
• Operating costs of $45.9 million vs. $29.0 million in Q1 2022, and cash operating costs excluding royalties per pound ¹ of V ₂ O ₅ equivalent sold of $5.15 vs. $3.97 in Q1 2022.
• Net loss of $1.2 million vs. a net loss of $2.0 million in Q1 2022.
• Cash provided before working capital items of $8.2 million, a 42% increase over Q1 2022.
• In January 2023, the Company secured two debt facilities: a two-year debt facility of $15.0 million, bearing interest at 6.85% per annum with payments due quarterly and principal repayments starting after a grace period of 180 days, and a three-year debt facility of $10.0 million, bearing interest at 8.36% per annum with an initial fee of 0.70% and payments due semi-annually with principal repayments starting after a grace period of 360 days.
• Cash balance of $61.6 million, debt of $65.0 million and a net working capital ² surplus of $119.3 million exiting Q1 2023.
• Total V ₂ O ₅ equivalent sales of 2,849 tonnes (including 245 tonnes of purchased material), a 28% increase over Q1 2022; V ₂ O ₅ production 2,111 tonnes (4.6 million lbs ³ ) vs. 2,441 tonnes (4.4 million lbs ³ ) in Q1 2022.
• The Company has adjusted its annual 2023 V ₂ O ₅ equivalent production guidance to 9,000 – 11,000 tonnes from 11,000 – 12,000 tonnes, its annual 2023 V ₂ O ₅ equivalent sales guidance to 8,700 – 10,700 tonnes from 10,300 – 11,300 tonnes and its cash operating cost excluding royalties per lb sold guidance to $4.85 – 5.65 from $4.85 – 5.25."

Vanadium Market Update ⁴

• "Spot demand remained strong in Q1 2023, primarily due to higher-than-expected demand from the aerospace sector with demand in the energy storage market anticipated to increase in future quarters largely due to anticipated Chinese vanadium redox flow battery (“VRFB”) deployments.
• The average benchmark price per pound of V ₂ O ₅ in Europe was $10.39 in Q1 2023, a 3% decrease from the average of $10.72 seen in Q1 2022; The average benchmark price per kg of ferrovanadium (“FeV”) in Europe was $39.46 in Q1 2023, a 15% decrease from the average of $46.17 seen in Q1 2022, mainly due to lower spot demand from the steel sector in the quarter.

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 May 5 Energy Fuels Inc. announced : "Energy Fuels announces Q1-2023 results, including net income of $114.26 million, $143.61 million of working capital, $19.34 million of uranium and vanadium sales and commencement of development of rare earth separation capabilities in Utah."

• "........The Company realized a total gross margin of 57% on its product sales during Q1-2023, including 58% on its uranium sale and 37% on its vanadium sales.
• At March 31, 2023, the Company's total assets and current assets increased by 37% and 10%, respectively, and total liabilities and current liabilities decreased by 44% and 72%, respectively, as compared to December 31, 2022.
• As of March 31, 2023, the Company held 847,000 pounds of finished U ₃ O ₈ , 906,000 pounds of finished V ₂ O ₅ , and 250 metric tons ("MT") of finished high-purity, partially separated mixed REE carbonate ("RE Carbonate") in inventory....."

Vanadium Highlights:

• "During Q1-2023, the Company sold approximately 79,344 pounds of existing V ₂ O ₅ inventory, for an average weighted sales price of $10.98 per pound of V ₂ O ₅ , for a total gross margin of 37%.
• Due to the high-purity of the Company's vanadium product, these sales occurred at a premium to V ₂ O ₅ spot prices prevailing at the time of the sales......"

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 April 28 Ferro-Alloy Resources announced : " 2022 final results and updated ore-body 1 Mineral Resource Estimate (“MRE”) ." Highlights include:

.....Financial and corporate highlights

• "Group revenues of US$6.27m (2021: US$4.73m), a 28% increase over the period, but slightly below market expectations.
• The Group made an overall loss for the year of US$4.29m (2021: loss of US$2.83m)......
• Cash in the bank of US$4.33m as at 31 December 2022 (2021:US$2.81m).
• Successful equity fundraising of US$10.0m (approximately £8.6m) in September 2022 to advance the feasibility study on the Balasausqandiq deposit."

On May 2 Ferro-Alloy Resources announced : " Full updated ore-body 1 Mineral Resource Estimate (“MRE”)." Highlights include:

• " An Indicated Mineral Resource of 32.9 million tonnes for OB1, at a mean grade of 0.62% V2O5, reported at a marginal cut-off grade of 0.4% V2O5 - equating to 203,364 contained tonnes of vanadium pentoxide (“V2O5”).
• An increase of 8.6 million tonnes (35.4%) of mineral resource and an increase of 38,058 tonnes (23%) of contained V2O5 by comparison with the estimate contained in the Company’s 2018 Competent Persons Report.
• The results of the previously reported infill drilling and trenching programs completed during 2021/22 have been successful in converting 100% of the Resources to Indicated for the OB1 deposit. No Measured or Inferred Resource are stated...."

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 April 28 Neometals reported : "Quarterly activities report f or the quarter ended 31 March 2023." Highlights include:

Corporate

• "Cash balance A$32.4 million, investments of A$30.1 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)

• "SSAB ‘LD Slag’ Supply Agreement amended to support a 10 year, 300,000tpa Finnish operation (“VRP1”).
• Feasibility Study indicates potential lowest-quartile operating cost with a low to-negative carbon footprint.
• Amended Shareholder Agreement and loan conversion increased Neometals RISAB equity to 72.5%.
• Project financing, engineering and procurement activities advanced for investment decision by 30 June 2023.

Upstream – Mineral Extraction

Barrambie Titanium and Vanadium (“Barrambie”) (100% NMT)

• "Offtake term-sheet executed post quarter-end with Jiuxing for both ‘direct shipping ore’ (“DSO”) and titanium-rich mixed gravity concentrate (“MGC”) products....."

On May 15 Neometals reported : " Barrambie Titanium Project PFS and ore reserve update." Highlights include:

• "Neometals completes Class 4 Pre-Feasibility Study Update (“PFS Update”) for production of Direct Shipped Ore (“DSO”) and Mixed Gravity Concentrate (“MGC”) from Barrambie.
• PFS Update includes mining from titanium-rich Eastern bands at Barrambie with a staged capital efficient approach to development: Initial A$78.1m capital requirement for 1 year production of DSO with mining, crushing, and screening only. Followed by a further A$137.2m to construct a crush, mill, beneficiate (“CMB”) plant for a further 12 years of MGC production.
• Project NPV (pre-tax) of A$374.9m A and IRR of 45%
• Average free cash (before tax, depreciation, and amortisation) of A$103.3M p.a. over the first 5 years.
• Probable Ore Reserve update to 27.6 Mt at 22.3% TiO2, 43.7% Fe2O3 and 0.57% V2O5."

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 May 2 Australian Vanadium announced :

Processing plant site progress..... The scheme amendment for the Tenindewa processing plant site was approved by the City of Greater Geraldton at its April Council Meeting. This approval allows progression of the development application process which is managed by the Strategic Development Assessment Unit (SDAU) of the Department of Lands and Heritage (DPLH).

On May 30 Australian Vanadium announced :

$49 Million Government Grant Agreement executed.....the Agreement provides a grant of $49 million to support the Australian Vanadium Project..... The Grant provides up to $49 million in funding support for the Australian Vanadium Project (“the Project”) to assist the Company , in collaboration with industry partners, to create an Australian v anadium b attery i ndustry .

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 May 24 Technology Metals Australia announced :

TMT further strengthens cornerstone s hareholder support through $11.5M placement. Firm commitments for $11.5m at $0.28 per share secured from existing and new strategic and institutional investors.

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 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 April 28 Tivan Limited announced : " Quarterly activities report." Highlights include:

Highlights in the quarter

• "Change of name from TNG Limited to Tivan Limited approved by shareholders at a General Meeting held on 20 January 2023 and effected following official confirmation from the Australian Securities and Investments Commission.
• Tivan’s new ASX code “TVN” became effective on 25 January 2023.
• Progress of the Board’s strategic review and the “Reset, Review, Renew” phase with the following three findings being announced during the quarter: 1. the relocation of the TIVAN ® Processing Facility to Middle Arm Sustainable Development Precinct (“MASDP”) in Darwin; 2. the signing of a Binding Term Sheet for the acquisition of the Speewah Vanadium-Titanium-Iron Project in Western Australia, which was completed after the end of the March quarter; and 3. the signing of an Exploration Alliance Agreement with EARTH AI for the Sandover Lithium Project in central Australia, following renegotiation of acquisition terms of Sandover in January 2023.
• Submission to the Australian Federal Government’s refresh of the Critical Minerals Strategy.
• Completion of reset of branding and positioning, and confirmation of strategic focus as a critical minerals company based in the Northern Territory.
• Establishment of a new office in Darwin, NT.
• Receipt of $1.9 million in Research and Development rebate.
• The Company’s cash position at 31 March 2023 was $3.0 million."

On May 22 Tivan Limited announced :

Tivan signs Memorandum of Understanding with Charles Darwin University to further collaborative pathways ..... These opportunities may include but are not limited to knowledge sharing on critical minerals processing, vanadium redox flow batteries and renewable energy technology, joint training and research opportunities, scholarship opportunities, and developing projects that may utilize CDU’s “REMHART” Renewable Energy Grid Testing Facility in East Arm in Darwin.

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 April 28 Vanadium Resources Limited announced : "Quarterly activities report for period ended 31 March 2023." Highlights include:

• " Appointment of General Manager Operations, Mr. Alex Oehmen, to drive development of the Steelpoortdrift Vanadium Project (the Project)."
• Project development work streams continued with a focus on progressing environmental authorizations and water approvals, internal review / optimization of process flowsheets for the concentration plant and salt roast leach ((SRL)) plant, and early-stage planning of critical path items for the development of the Project .
• Power solutions for the SRL site developing well as Kadoma progresses with plans to develop a utility scale photo voltaic (PV) solar plant next to the site .
• Discussions with potential financing, strategic equity investors and offtake parties continued through the quarter, with several non-binding indicative term sheets and expressions of interest having been received ."

On May 3 Vanadium Resources Limited announced : "VR8 concludes agreements to increase its interest in Steelpoortdrift up to 86.49%."

On May 3 Vanadium Resources Limited announced : "Strategic investment and grant of limited exclusivity to enter into offtake." Highlights include:

• " Matrix Resources (Zhejiang) Co., Ltd (“Matrix”) to make a strategic A$5.91 million investment in return for an interest of 9.99% in VR8 via a subscription for 53,763,800 shares at an issue price of $0.11 per subscription share, representing 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.
• Matrix is a wholly owned subsidiary of Lygend Investment, which is also the largest shareholder of Hong Kong listed Lygend Resources & Technology Co., Ltd. (Stock Code: 02245, Stock Short Name: Lygend Resource) (“Lygend Resource”). Lygend Resource is operating its business across the entire nickel industry value chain and is engaged in both the trading and the production of nickel products.
• The Company must use its best endeavors to enable Matrix to participate in future equity capital raises to maintain its ownership position.
• Funds raised from the strategic investment will be used towards progressing Front End Engineering Design (“FEED”), completing additional technical work and critical pathways to construction and growing the operations team as the Company moves towards Final Investment Decision (“FID”). "

On May 26 Vanadium Resources Limited announced : "A$5.91 million strategic placement to Matrix Resources completed....."

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 May 11 VanadiumCorp Resources Inc. announced :

VanadiumCorp receives TSX approval for an oversubscribed financing....for aggregate gross proceeds of $1,632,940.

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 April 28 Richmond Vanadium Technologies Pty Ltd announced : quarterly activities report for the period ending 31st March 2023." Highlights include:

• " Richmond Vanadium Technology ((RVT)) appointed specialist environmental consultant Epic Environmental to lead development of an Environmental Impact Statement ((EIS)) and assist with associated environmental approvals for the Richmond - Julia Creek Vanadium Project .
• Post quarter end, Richmond - Julia Creek Vanadium Project’s Terms of Reference ((TOR)) for EIS finalized by the Queensland Government.
• RVT and Ultra Power Systems ((UPS)) executed an agreement to form a joint alliance to grow vanadium redox flow battery manufacturing inclusive of an offtake arrangement.
• Experienced study manager Peter Hedley appointed as the Project Director for the Richmond – Julia Creek Vanadium Project Bankable Feasibility Study.
• The Richmond – Julia Creek Vanadium Project is capable of supporting a world class clean green focused vanadium operation for +100 years at current throughput rates, with a Mineral Resource of 1.8Bt @ 0.36% for 6.7Mt V2O5 and Ore Reserve of 459Mt @ 0.49% for 2.25Mt V2O5."

For further details see:

Vanadium Miners News For The Month Of May 2023