UUUU - Vanadium Miners News For The Month Of September 2023

2023-09-28 05:04:27 ET

Summary

• Europe vanadium pentoxide spot prices have been lower over the past 30 days. China and Europe ferrovanadium prices were lower.
• Vanadium market news - Benzinga Research forecasts a CAGR of 4.7% for the vanadium market during the forecast period 2023-2029.
• Vanadium company news - Bushveld Minerals receives a proposed investment of US$69.5-US$77.5 million by Southern Point Resources. Largo initiates a review of strategic alternatives for Largo Clean Energy.
• Australian Vanadium and Technology Metals Australia agreed to an A$217 million merger. AVL will acquire 100% of the TMT Shares on the issue.

Welcome to the Vanadium miners news.

September saw lower vanadium prices with some recovery the past week.

The big news for the month was the announcement that Australian Vanadium and Technology Metals Australia have agreed to merge.

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% one year price chart - Current price = USD 6.60/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% one year price chart - China = USD 28.00/kg, Europe = USD 29.25/kg

Vanadium demand versus supply

In 2017 Robert Friedland stated : "We think there's a revolution coming in vanadium redox flow batteries..."

An April 2021 Wood Mackenzie report stated :

Global energy storage deployment surged a remarkable 62% in 2020, with 5 GW/9 GWh of new capacity added. This brought the total energy storage market to more than 27 GWh. Furthermore, we expect the global (energy storage) market to grow 27-fold by 2030.

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 August 30 Energy Storage News reported :

Sumitomo Electric makes long-duration flow battery sale for energy trading in Japan. Sumitomo Electric will supply an 8-hour duration vanadium redox flow battery (VRFB) to a recently-established municipal power company in Niigata, Japan...Sumitomo Electric is one of the longest-established and biggest global suppliers of the nascent VRFB technology, having to date delivered around 47MW/162MWh worldwide. It completed the world's biggest flow battery (at the time) at 60MWh in northern Japan in 2015, is working on another of 51MWh, and supplied what is currently still the US' biggest VRFB, a 2MW/8MWh system in California...

On September 21 Benzinga Research reported :

Vanadium market 2023 is set to fly excessive growth in years to come... The global Vanadium market was valued at USD 37000 million in 2022 and is anticipated to reach USD 51420 million by 2029, witnessing a CAGR of 4.7% during the forecast period 2023-2029.

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 related news.

AMG Critical Materials 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.

No significant news for the month.

Bushveld Minerals Limited [LN-AIM:BMN] ( OTC:BSHVF )

Bushveld is a diversified AIM-listed resources company with a portfolio of vanadium, tin and coal assets in Southern Africa and Madagascar.

On September 11, Bushveld Minerals announced : "Investment by Southern Point Resources." Highlights include:

The key terms of the cumulative proposed investment of US$69.5-US$77.5 million are as follows:

• "An interim working capital facility secured against production at the Vanchem plant designed to provide Bushveld with additional working capital to fund the ongoing expansion of production at Vanchem whilst the transactions contemplated below are underway, totalling ZAR150 million (~US$8.1 million).
• The proposed purchase by SPR of 50% of the shares in Bushveld's subsidiary that owns its Vanchem vanadium plant, and its 64% equity interest in its subsidiary that owns its Mokopane project, for a total of ~US$25 million.
• An equity investment by Southern Point Resources of ~US$12.5 million into the Company, at the same equity price as Orion Mine Finance ("Orion").
• A new marketing and sales arrangement under which SPR will be appointed to carry out all marketing and sales of product for Bushveld. In line with this arrangement, SPR will provide a medium-term trade finance working capital facility to the Company, totalling ~US$25-30 million...
• A potential future commitment by SPR of an investment of US$7-10 million in Vanchem for the recommissioning of Kiln-1."

Largo Inc. [TSX:LGO] [GR:LR81] ( LGORF )(NASDAQ: LGO )

Largo Inc. is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil as well as a producer of VRFBs.

On August 29, Largo Inc. announced :

Largo initiates review of strategic alternatives for Largo Clean Energy to evaluate opportunities to maximize value in the Clean Energy Transition...Daniel Tellechea, Interim CEO and Director of Largo commented: "Largo is commencing a comprehensive and thorough review of strategic alternatives to accelerate and enhance the distinctive value proposition LCE presents for vanadium batteries and the long duration energy storage sector. We believe several strategic opportunities exist in the market today that would benefit from LCE's unique characteristics, and a formal process for comparing these alternatives is expected to deliver maximum value for all shareholders in a timely manner...

Energy Fuels Inc. [TSX:EFR] ( UUUU )

Energy Fuels states it is "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 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."

On September 11, Ferro-Alloy Resources announced : "2023 interim results." Highlights include:

Feasibility Study

• "Feasibility study ongoing with completion of Stage 1 of the study expected in April 2024 and Stage 2 later in 2024: Ore resource for ore-body 1 was revised upwards during the period by SRK Consulting (Kazakhstan) to 32.9m tonnes at a mean grade of 0.62%, giving an increase of 35.4% in the resource and 23% in contained V2O5. Drilling of ore-bodies 2, 3 and 4 has been completed with the exception of an area which is difficult to access. The Company is awaiting assays for these ore-bodies which are expected to provide the feed for the larger Stage 2 development of the deposit. Metallurgical test-work is nearing completion."

Financial

• "Total revenues of US$3.3m for the period (H1 2022: US$3.9m) reflecting the reduced volumes of raw materials delivered to the existing plant for processing during the first quarter of the year.
• Overall loss for the period of US$1.5m (2022: loss of US$0.7m)..."

On September 19, Ferro-Alloy Resources announced : "Exempt offer bond programme - Second Tranche."

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.

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.

No vanadium related news.

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 September 7, Australian Vanadium announced :

New option agreement signed for vanadium processing plant land. Option to purchase land for Australian Vanadium Project development.

On September 25, Australian Vanadium announced : "Australian Vanadium and Technology Metals Australia agree a$217 million merger. Combination is a logical consolidation of adjoining projects across one orebody, creating a leading Australian vanadium developer focused exclusively on Western Australia." Highlights include:

• "Australian Vanadium Limited (ASX:AVL) (AVL) and Technology Metals Australia Limited (ASX:TMT) (TMT) have agreed to merge via a proposed Scheme of Arrangement (Scheme), under which AVL will acquire 100% of the TMT Shares on issue.
• The consolidation of two adjoining projects across one orebody provides a unique opportunity to realise operational and corporate synergies by creating a single integrated project. The combined group will become the leading Australian vanadium developer with a world-class asset of scale, located in a Tier-1 mining jurisdiction.
• TMT Shareholders will receive 12.00 AVL Shares for every TMT Share held on the Scheme record date. This implies an offer price of A$0.324 per TMT Share based on AVL's last close price of A$0.027.
• The offer represents a premium of: 9.8% to TMT's last close price (based on AVL and TMT's last closing prices of A$0.027/sh and A$0.295/sh respectively). 26.7% to TMT's 30-day VWAP (based on AVL's 30-day VWAP of A$0.029).
• The Scheme is unanimously recommended by the TMT Board and each director of TMT intends to vote all TMT Shares they control in favour of the Scheme, in the absence of a Superior Proposal and subject to an Independent Expert opining (and continuing to opine) that the Scheme is in the best interests of the TMT Shareholders...
• AVL Board to be complemented with the addition of Ms Jo Gaines as a Non-Executive Director. Mr Ian Prentice to join AVL's executive management team and will be initially focused on the integration of the two adjoining projects.
• AVL to conduct an institutional placement (Placement) to raise A$15 million (with the ability to take oversubscriptions to increase the Placement to A$20 million) to fund ongoing project and corporate initiatives during the transaction period. RCF has committed to subscribe for A$15 million of the Placement with allocations subject to the outcome of the bookbuild process.
• If the Scheme is approved and implemented, existing AVL shareholders will hold ~58% of the combined group and existing TMT Shareholders will hold ~42% of the combined group (prior to any dilution associated with the proposed Placement).
• The combined group will continue to trade as Australian Vanadium Limited on the ASX."

On September 26, Australian Vanadium announced :

Australian vanadium successfully completes A$15.7 million institutional placement...at a fixed price of A$0.026 per New Share...

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 September 26, Technology Metals Australia announced :

Additional TMT shareholders support proposed merger with Australian Vanadium.

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 September 22, Tivan Limited announced : "Tivan engages Hatch for engineering review of the Speewah Project..."

On September 26, Tivan Limited announced : "Annual report 2023..."

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.

No news for the month.

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 news for the month.

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 September 26, Richmond Vanadium Technology announced : "Annual report 2023..."

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).

On September 12, Phenom Resources Corp. announced :

Phenom provides updates on relevant additional U.S. Department of Energy grant opportunities...The Company plans to submit applications to both this fall. Firstly, on August 31, 2023, the DOE announced a Notice of Intent to make available $3.5 billion in funding to bolster American battery manufacturing and strengthen domestic supply chains... Secondly, in support of President Biden's Investing in America agenda, the DOE announced on September 6, 2023, up to $150 million of grant funding opportunities to support U.S. critical metals projects with bench- and pilot-scale research, development, and demonstration processing plants to produce and refine critical minerals and materials in the United States... This funding opportunity, although smaller than the first FOA, could have relevant application to the Company to help fund prefeasibility and feasibility studies on its vanadium resource...

On September 19, Phenom Resources Corp. announced :

For further details see: