IESVF - Vanadium Miners News For The Month Of November 2023

2023-11-30 10:58:32 ET

Summary

• Europe and China vanadium pentoxide and ferrovanadium spot prices were slightly lower the past 30 days.
• Vanadium market news - China’s ferroalloys markets largely positive over property stimulus plans.
• Vanadium company news - Largo Inc. reports a net loss of $11.9 million in Q3 2023, driven by lower vanadium prices and lower vanadium sales.
• Australian Vanadium merger with Technology Metals Australia to be completed by February 2024. Vanadium Resources increases project interest in Steelpoortdrift to 86.49%.

Welcome to the Vanadium miners news.

November saw some positive developments in the vanadium market despite the current depressed vanadium prices.

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 & China Vanadium Pentoxide [V2O5] Flake 98% one year price chart - Europe = USD 6.10/lb, China = USD 4.95/lb

Europe and China Ferrovanadium [FeV] 80% one year price chart - Europe = USD 25.25/kg, China = USD 26.80/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

In November MC Group posted :

Vanadium: 2023 World Market Review and Forecast to 2032.

• more than half of vanadium [V] is mined in China, while China, Russia and South Africa together account for 85% of world mine production
• the main demand for metal is generated by the steel industry, and in recent years there has been an increased interest in vanadium possible application in the production of vanadium redox batteries, however, due to high metal prices, there has been no great activity in this direction
• in recent years, the global vanadium market has come to a certain balance of supply and demand, but in 2020 production decreased, as did the demand, as a result of the crisis caused by the COVID-19 pandemic
• the decline in metal prices has led to renewed interest in researching the production of vanadium redox batteries, any breakthrough in this area will lead to a significant increase in demand for vanadium, which may cause some tightness and again increase in prices
• and yet, in the next couple of years, the steel industry will remain the main driver of the world V market
• in the long term, the situation with global vanadium supply may undergo some changes as a result of additional volumes of metal from spent catalysts entering the market (oil industry)...

Vanadium Mine production by country ( source )

On November 13 the European Union Council announced :

The Council and the European Parliament today reached a deal on the proposed regulation establishing a framework to ensure a secure and sustainable supply of critical raw materials, better known as the Critical Raw Materials Act. The agreement is provisional, pending formal adoption in both institutions...The political agreement reached today keeps the overall objectives of the original proposal but strengthens several elements. It includes aluminium in the list of strategic and critical materials, reinforces the benchmark of recycling, clarifies the permitting procedure for strategic projects, and requires relevant companies to perform a supply-chain risk assessment on their sourcing of strategic raw materials…On the global stage, the regulation identified measures to diversify imports of critical raw materials ensuring that not more than 65% of the Union's consumption of each strategic raw material comes from a single third country…The provisional agreement keeps the benchmarks of 10% for extraction of raw materials and 40% for processing but increases the benchmark for recycling to at least 25% of EU's annual consumption of raw materials…The provisional compromise also unifies the timings of the permit procedure. The total duration of the permit granting process should not exceed 27 months for extraction projects and 15 months for processing and recycling projects…Next steps. The provisional agreement reached with the European Parliament now needs to be endorsed and formally adopted by both institutions.

Note: Vanadium is on the EU critical minerals list .

On November 24 Fastmarkets reported :

China's ferroalloys markets largely positive over property stimulus plans. There was active trading in ferroalloys in China in the week ended Friday November 24 following upbeat sentiment for construction after news that the country's authorities will be whitelisting financing for certain property developers. Market sources told Fastmarkets that roughly 50 property developers will be included on a whitelist for financing.

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 October 30, Glencore announced : "Third quarter 2023 production report..."

Glencore own sourced Vanadium Pentoxide production is 14.9mlbs YTD 2023 ( source )

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 November 8, AMG Critical Materials N.V. announced : "AMG reports third quarter 2023 results and announces new corporate structure effective January 1, 2024." Highlights include:

Vanadium

• "The spent catalyst roasting facility in Zanesville, Ohio operated at full capacity for the third quarter and outperformed our roasting facility in Cambridge, Ohio. The Zanesville melt shop has operated at full capacity utilization and the Vanadium team is focused on increasing operational availability, optimizing cycle time and increasing yield.
• AMG's innovative lithium vanadium battery ("LIVA") projects are integral for industrial power management applications and accelerate the industrial energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are under construction, and 13 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 379 MWh.
• The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. Production is expected to start in the first quarter of 2024.
• Applying a newly developed process technology, AMG Titanium in Nuremberg, Germany has started to process spent roasted catalyst to V ₂ O ₅ .
• Shell & AMG Recycling's ("SARBV") project development of a closed loop circular recycling facility in the Middle East is progressing. Phase I of the "Supercenter" project, a hydrometallurgical facility to process vanadium-containing gasification ash, is under a long-term contract with Aramco. The gasification ash will be processed into vanadium oxide and then to vanadium electrolytes for use in batteries in the Kingdom of Saudi Arabia. Phase I is expected to reach FEL3 status by the end of the year. The "Supercenter" concept also includes spent catalyst recycling projects, fresh catalyst production, and the manufacturing of vanadium batteries. The Phase I facility will also produce 6,000 m³ of electrolyte, which will support 100 MWh of vanadium redox flow battery capacity annually. In addition, a LIVA Hybrid Energy Storage System and a Fresh Catalyst R&D facility will be part of Phase 1."

Financial Highlights

• "Cash from operating activities was $25 million in the third quarter of 2023, and $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
• AMG's liquidity as of September 30, 2023 was $542 million, with $347 million of unrestricted cash and $195 million of revolving credit availability.
• Annualized return on capital employed was 28.4% for the first nine months of 2023, compared to 29.5% for the same period in 2022.
• AMG Engineering's order backlog of $341 million as of September 30, 2023, the highest in AMG's history, was driven primarily by the aerospace industry."

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 October 30, Bushveld Minerals Limited announced : "Conditional acquisition of minority interests in Vametco." Highlights include:

• "Bushveld has entered into a definitive agreement to acquire the 26% minority interest in Bushveld Vametco Holdings Proprietary Limited ("BVH")...
• The Transaction: Will result in Bushveld owning 100% of the Vametco mine and vanadium plant, and acquiring full operational, management and financial control of Vametco. Gives the Group complete control over Vametco's cash flows, which have previously been restricted due to minority interest. Is immediately value accretive to Bushveld Shareholders and is expected to enhance earnings per share going forward. 70% of the Consideration Shares will be subject to a 6 month lock-in period..."

On November 6, Bushveld Minerals Limited announced : "Q3 2023 and 9M 2023 operational update." Highlights include:

Q3 2023

• "Production of 1,000 mtV (Q2 2023: 840 mtV) (Q3 2022: 1,016 mtV).
• Weighted average production cash cost ¹ (C1) of US$26.5/kgV (Q2 2023: US$27.4/kgV) (Q3 2022: US$29.3/kgV).
• Sales of 849 mtV (Q2 2023: 1,068 mtV) (Q3 2022: 1,034 mtV)."

9M 2023

• "Production of 2,784 mtV (9M 2022: 2,657 mtV).
• Weighted average production cash cost ¹ (C1) of US$26.4/kgV (9M 2022: US$28.9/kgV).
• Sales of 2,945 mtV (9M 2022: 2,678 mtV)..."

2023 Group guidance

• "On track to meet Group production guidance for 2023 of between 3,700 mtV and 3,900 mtV...
• On track to meet Group weighted average production cash cost (C1) guidance of between US$26.6/kgV and US$26.9/kgV, (ZAR481/kgV and ZAR487/kgV)."

Corporate update

• "On 11 September 2023, the Company announced a Binding Term Sheet with Southern Point Resources for a cumulative proposed investment of between US$69.5 - US$77.5 million. Bushveld has since received the ZAR150 million (~US$8.1 million) interim working capital funds as part of the transaction. The Company is in process of completing the other aspects of the overall transaction.
• The Company is progressing the various workstreams to complete the Orion convertible loan note restructuring before the 21 December 2023 due date..."

On November 20, Bushveld Minerals Limited announced :

Definitive agreement for the acquisition by Southern Point Resources of a 50% interest in Vanchem...for an acquisition price of up to US$21.3 million (the "Transaction"). The purchase by SPR (or an SPR affiliate) of Bushveld's 64% equity interest in a subsidiary that owns the Mokopane Vanadium project for US$3.7 million (the "Mokopane Acquisition"), which was announced on the same date, remains on track.

On November 20, Bushveld Minerals Limited announced : "Bushveld Energy update - Sale process initiated for CellCube."

On November 27, Bushveld Minerals Limited announced : "Agreement on Convertible Loan Note Refinancing."

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 November 8, Largo Inc. announced : "Largo reports third quarter 2023 financial results; Announces first commercial shipment of ilmenite as by-product of its vanadium operations in Brazil and validation of its 6 MWh Vanadium Redox Flow Battery to operate on test conditions in Spain." Highlights include:

• "Revenues of $44.0 million vs. revenues of $54.3 million in Q3 2022; Decline driven by lower vanadium prices and lower vanadium sales volumes; Revenues per lb sold ³ of V ₂ O ₅ equivalent of $8.34 vs. $8.80 in Q3 2022.
• Operating costs of $42.5 million vs. $45.6 million in Q3 2022; Cash operating costs excluding royalties ¹ per pound sold of $5.44 vs. 4.86 per lb sold in Q3 2022.
• Net loss of $11.9 million vs. net loss of $2.6 million in Q3 2022; Basic loss per share of $0.19 vs. basic loss per share of $0.04 in Q3 2022.
• Cash used before working capital items of $4.4 million vs. cash provided before working capital items of $4.3 million in Q3 2022.
• Cash balance of $39.5 million, net working capital surplus of $91.0 million and debt of $65.0 million exiting Q3 2023.
• V ₂ O ₅ equivalent sales of 2,385 tonnes (inclusive of 256 tonnes of purchased material) vs. 2,796 tonnes (inclusive of 351 tonnes of purchased material) sold in Q3 2022.
• Production of 2,163 tonnes (4.8 million lbs ¹ ) of V ₂ O ₅ vs. 2.906 tonnes in Q3 2022.
• Largo Clean Energy's ("LCE") 6 megawatt-hour ("MWh") vanadium redox flow battery ("VRFB") deployment for Enel Green Power España ("EGPE") was validated to operate on test conditions according to EGPE specifications and LCE test procedures in October.
• The Company successfully commissioned and is in the process of ramping up production of its new ilmenite concentrate plant with initial production of 350 tonnes in August and 700 tonnes in September; The first commercial shipment of ilmenite is in progress and should contribute to the Company's revenues in Q4 2023 as a by-product of its vanadium operations..."

Vanadium Market Update ²

• "The average benchmark price per lb of V ₂ O ₅ in Europe was $8.03, a 2.5% decrease from the average of $8.23 seen in Q3 2022.
• Vanadium spot demand was soft in Q3 2023, primarily due to adverse conditions in the Chinese and European steel industries. However, strong demand growth from the aerospace and energy storage sectors continued."

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 November 3, Energy Fuels announced : "Energy Fuels announces Q3-2023 results, including net income, continued significant increase in working capital, profitable uranium sales, and continued progress on development of uranium mines and rare earth separation capabilities." Highlights include:

• "As of September 30, 2023, the Company had a robust balance sheet with $162.50 million of working capital (versus $116.97 million as of December 31, 2022), including $54.54 million of cash and cash equivalents, $70.62 million of marketable securities, $27.66 million of inventory, and no debt. At current commodity prices, the Company's product inventory has a value of approximately $49.09 million.
• As of September 30, 2023, the Company held 586,000 pounds of U ₃ O ₈ , 906,000 pounds of finished vanadium pentoxide ("V ₂ O ₅ "), and 11 MT of finished high-purity, partially separated mixed REE carbonate ("RE Carbonate") in inventory..."

Vanadium Highlights:

• "During the three months ended September 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.
• As of October 27, 2023, the spot price of V ₂ O ₅ was $6.73 per pound, according to data from Fastmarkets."

On November 13, Energy Fuels announced :

Energy Fuels announces sale of secured convertible note and receipt of payment in full for prior sale of Alta Mesa ISR Project. Together with $41.8 million previously paid by enCore, net proceeds from the Note total $64.2 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 November 14, Ferro-Alloy Resources announced :

Conversion of Vision Blue Resources Loan Notes issue of equity. 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 conversion of the outstanding convertible loan notes held by Vision Blue Resources Limited ("VBR") into 33,520,088 ordinary shares of no par value ("Ordinary Shares") in the Company.

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.

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 October 30, Neometals announced :

Vanadium recovery strategy update. Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), advises that it has provided its partner in the Finnish vanadium recovery project ("VRP1"), Critical Metals Ltd ("Critical Metals"), with notice that it does not wish to proceed with the construction of a vanadium recovery facility. Despite the potential lowest-quartile operating cost and low carbon footprint, the state of the global financial markets dictate that the Company preserves its cash balance and not contribute further material funding to VRP1 evaluation activities. Neometals earned a 72.5% interest in VRP1 through its ownership in Recycling Industries Scandinavia AB ("RISAB"), with Critical Metals holding 27.5%.

On October 30, Neometals announced : "Quarterly activities report for the quarter ended 30 September 2023." Highlights include:

Corporate

• "Cash balance A$14.2 million, investments of A$22.7 million and no debt."

Vanadium Recovery ("VRP") (72.5% NMT via Recycling Industries Scandinavia AB ("RISAB"), an incorporated JV with Critical Metals Ltd), Technology 100% NMT via Avanti Materials Ltd)

• "Progressed project financing activities and secured 'take or pay' offtake agreement with Glencore International AG for 100% of vanadium production at market linked pricing without forward sales.
• Subsequent to the end of the quarter Neometals providing notice to its partner in the Finnish Vanadium Recovery Project ("VRP1") of its wish not to proceed with construction.
• Commercialisation of the VRP technology will now be conducted under a technology licensing business model."

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

• "Metallurgical test-work, regional exploration, native title, environmental and water activities advanced.
• Offtake negotiations discontinued with Jiuxing given inability to agree mutually acceptable terms in relation to offtake and equity funding.
• Ongoing engagement with third-party titanium producers and mining services companies in relation to offtake, equity investment and contract mine-to-port solution."

On November 23, Neometals announced : "Neometals successfully closes A$9.0 million placement..."

Australian Vanadium [ASX:AVL] [GR:JT71] (ATVVF) - merger with Technology Metals Australia by to be completed by February 2024

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 October 27, Australian Vanadium announced : "Quarterly activities report period ending 30 September 2023." Highlights include:

Proposed merger with Technology Metals Australia

• "Australian Vanadium Limited (ASX: AVL, the Company or AVL) and Technology Metals Australia Limited (ASX: TMT) have agreed to merge via a proposed Scheme of Arrangement, under which AVL will acquire 100% of the TMT shares on issue.
• The combination of AVL and TMT will create a leading Australian vanadium developer through the consolidation of two adjoining projects across one orebody.
• If the Scheme is approved and implemented, existing AVL shareholders will hold ~62% of the combined group and existing TMT shareholders will hold ~38% of the combined group.
• The merger is intended to be completed by February 2024."

Australian Vanadium Project

• "The Company continues to progress activities to develop the Australian Vanadium Project.
• A water licence for the proposed processing plant at Tenindewa was approved.
• A new option agreement to purchase land for the proposed processing plant site was signed.
• Access agreements for haulage road and water pipeline route were signed."

Vanadium in energy storage

• "Construction of AVL's vanadium electrolyte manufacturing facility commenced and is on track for completion this calendar year.
• Regional energy provider Horizon Power purchased its first vanadium flow battery from AVL's wholly owned subsidiary, VSUN Energy Pty Ltd."

Corporate

• "...Successful completion of a $15.7 million institutional placement concurrently announced with the proposed merger between AVL and TMT.
• Cash position of $32.5 million as at 30 September 2023, including restricted cash of $0.4 million and proceeds from the institutional placement."

Technology Metals Australia [ASX:TMT] - merger with Australian Vanadium by to be completed by February 2024

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 significant news for the month.

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 October 30, Tivan Limited announced : "September 2023 Tivan Limited - Quarterly activities report." Highlights include:

• "Updated development strategy for the Speewah Project, with initial development focused on a conventional salt roast processing operation, and a longer-term vision of commercialising the TIVAN+ technology pathway.
• Completion of a $6 million equity capital raising, comprising a $5 million share placement to institutional and high net worth investors, and proceeds of $1 million from a share purchase plan...
• The Company's cash position as of 30 September 2023 was $2.025 million."

For further details see:

Vanadium Miners News For The Month Of November 2023