Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Investor Presentation (May 2022)
73 slides from Australian Vanadium's investor presentation, May 20, 2022
Slide 1: Equity Raising Presentation
Equity Raising Presentation MAY 2022 ASX:AVL Not for release to US wire services or distribution in the United States
Slide 2: Important Information & Disclaimer
IMPORTANT INFORMATION & DISCLAIMER IMPORTANT: You must read the following before continuing. This presentation (Presentation) has been prepared by Australian Vanadium Limited ACN 116 221 740 (AVL or the Company) and is dated 18 May 2022. Summary information The following notice and disclaimer applie
Slide 3: Important Information & Disclaimer
IMPORTANT INFORMATION & DISCLAIMER Not investment or financial product advice Information in this Presentation does not constitute financial product, legal, tax or investment advice and is not a recommendation to investors or potential investors in relation to holding, purchasing or selling New Shar
Slide 4: Important Information & Disclaimer
IMPORTANT INFORMATION & DISCLAIMER No representation, warranty or assurance, express or implied, is given or made in relation to any forward looking statement. In particular no representation, warranty or assumption, express or implied, is given in relation to any underlying assumption or that any f
Slide 5: Important Information & Disclaimer
IMPORTANT INFORMATION & DISCLAIMER The Limited Parties make no recommendations as to whether you or your related parties should participate in the Equity Raise nor do they make any representations or warranties to you concerning the Equity Raise, and you represent, warrant and agree that you have no
Slide 6: ASX Chapter 5 Compliance and Cautionary and Forward Looking Statements
ASX CHAPTER 5 COMPLIANCE AND CAUTIONARY AND FORWARD LOOKING STATEMENTS The views expressed in this Presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability
Slide 7: Mineral Resources and Ore Reserves
MINERAL RESOURCES AND ORE RESERVES Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) It is a requirement of the ASX Listing Rules that the reporting of Ore Reserves and Mineral Resources in Australia comply with the JORC Code. Investors outside Au
Slide 8: Executive Summary
A S X : AV L A U S T R A L I A N VA N A D I U M L I M I T E D A S X : AV L Executive Summary Australian Vanadium Limited (AVL or the Company) is a Perth-based company developing the Australian Vanadium Project in Western Australia and intends to supply high-grade vanadium to the global steel and ene
Slide 9: Equity Raising Summary
Equity Raising Summary 9
Slide 10: Equity Raising Details
A S X : AV L EQUITY RAISING SUMMARY Equity Raising Details A$20.0m Institutional Placement and A$7.5m Share Purchase Plan A$27.5m equity raising comprising: • A$20m placement of approximately 425.5 new fully paid ordinary shares (New Shares) to sophisticated and professional investors (Placement). T
Slide 11: Sources & Uses of Funds
A S X : AV L EQUITY RAISING SUMMARY Sources & Uses of Funds Sources of Funds1 (A$m) Australian Vanadium Project development ▸ Early Contractor Involvement, Pre-FEED engineering work, Placement Proceeds 20.0 and ordering of long lead time items where appropriate to accelerate project timelines ahead
Slide 12: Indicative Timetable
A S X : AV L EQUITY RAISING SUMMARY Indicative Timetable EVENT DATE (2022) Trading Halt Wednesday, 18 May Record Date for eligibility to participate in the SPP 5:00pm on Thursday, 19 May Trading halt lifted and announcement of Placement and SPP Friday, 20 May Dispatch SPP Offer Documents and SPP off
Slide 13: Corporate Overview
Corporate Overview 13
Slide 14: Australian Vanadium
A S X : AV L C O R P O R AT E O V E R V I E W Australian Vanadium K E Y S TAT I S T I C S A S AT 1 7 / 5 / 2 2 Price (A$) Volume (m) A$0.12 600 Ordinary Shares on Issue 3,472m A$0.10 500 Share Price A$0.057 A$0.08 400 A$0.06 300 Market Capitalisation (Undiluted) A$197.5m A$0.04 200 Cash at the end o
Slide 15: Experienced Corporate Team
C O R P O R AT E O V E R V I E W Experienced Corporate Team International vanadium credentials Over 10 years of experience chairing Has over 25 years of experience Over 40 years of global vanadium public and private companies post in the mining industry, spanning experience including processing exte
Slide 16: Experienced Technical Team
C O R P O R AT E O V E R V I E W Experienced Technical Team 20 years of experience in Responsible for drilling and More than 20 years of resource development in WA field safety programs at the experience in multi across multiple commodities. Australian Vanadium Project. commodity metallurgy with Und
Slide 17: $49 Million grant from Australian Government
A S X : AV L $49 Million grant from Australian Government Grant provides international investor confidence and reduces overall Project funding requirements In March 2022 AVL was awarded a $49m grant from the Australian Government towards developing the Australian Vanadium Project. The grant has been
Slide 18: Bankable Feasibility Study
A S X : AV L Bankable Feasibility Study AVL releases BFS allowing formal financial due diligence to progress ▪ Significant primary vanadium producer targeting ▪ Level of study provides a basis for engagement with critical mineral, steel and energy storage markets. financing institutions including NA
Slide 19: Our Partners
ASX: AVL Our Partners Fete] a hh P SIM Gmwett (@HCF =~ ATCO &,3 Business Science, Cooperative Research Centres Program | AXANSTO. = YUS VANADIUM = FUTURE i= BATTERY Ss GOLDER PRIM=RO_ Metso:Outotec ms INDUSTRIES «x a SSllCUGE OGrantThornton WOO. jie, vA ontioey =S=E22 Drow TECH GOVERNMENT OF BUREAU
Slide 20: Strong ESG Focus
A S X : AV L ESG IN ACTION Strong ESG Focus Green hydrogen and renewable energy to reduce Scope 1 emissions Green hydrogen strategy ▸Natural gas feed blend for the processing plant – collaborating with ATCO Australia. ▸Power generation. ▸Minesite and long-distance haulage vehicles. ▸Ore reduction pr
Slide 21: Community Partners
A S X : AV L ESG IN ACTION Community Partners Early community engagement has provided a strong start for the Project. Community Partners ▸ AVL is working with the Yugunga-Nya People to provide employment opportunities and help build a brighter future for the younger members of the group. ▸ AVL is a
Slide 22: Our Markets
Our Markets 22
Slide 23: Vanadium Markets
Vanadium Markets 92% 6% 2% A S X : AV L Source – US based vanadium market specialist: TTP Squared, Inc 23
Slide 24: Global Vanadium
A S X : AV L Global Vanadium Vanadium produced as a by-product from steel Vanadium produced as a by-product from steel 1 primary vanadium mine 2 primary vanadium mines Sources - iScience 24, 103277, November 19, 2021 & TTP Squared, Inc 24
Slide 25: Vanadium Price
VA N A D I U M M A R K E T S Vanadium Price Long-Term Price ‣ Long-term average price for commodity grade V2O5 is $9/lb (inflated to 2020 USD) ‣ High purity V2O5 is typically sold at a premium to the commodity price ‣ AVL favours price of US$10.50/lb considering strong current pricing and growing fu
Slide 26: Projected impact of energy storage on demand
A S X : AV L VA N A D I U M M A R K E T S Projected impact of energy storage on demand 250,000 Current 200,000 global production ~118,000 MTV per annum 150,000 MTV 100,000 AVL’s planned 50,000 production 6,270 MTV per annum1 - 2020 2021 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Steel Ene
Slide 27: Production expansion between 2020 - 2025
A S X : AV L VA N A D I U M M A R K E T S Production expansion between 2020 - 2025 • TTP Squared’s latest forecast assumes significant new capacity in the coming years, with some coming from spent catalyst. • Forecast assumes 4,000 MTV of new production from new primary vanadium mines such as the Au
Slide 28: The Australian Vanadium Project
THE AUSTRALIAN VANADIUM PROJECT 28
Slide 29: Project Location
Infrastructure – port, water, gas, rail, road, power, airport Access to local workforce Abundant renewable energy resources The Australian Vanadium Project Project Location 29
Slide 30: Strategic Proposed Project Layout
A S X : AV L A U S T R A L I A N VA N A D I U M P R O J E C T Strategic Proposed Project Layout Planned Coastal Processing – gas and green hydrogen Processing plant location near coast offers significant opportunities: ‣ Proximity to gas pipeline infrastructure and associated low domestic gas prices
Slide 31: Project Metric Highlights
A S X : AV L Project Metric Highlights STRONG OPEX, RESOURCE FINANCIAL CAPEX OUTCOMES Total Resource C1 OPEX 239Mt @ 0.73% V2O5 Pre-Tax NPV7.5 IRR High-grade 95.6Mt @ 1.07 V₂O₅ US$4.43/lb V2O5 A$833m 20.6% Ore Reserve 30.9Mt @ 1.09 V2O5 EBITDA Annual Average PRE-PRODUCTION Proved 10.5Mt @1.11% V2O5
Slide 32: Key Project Differentiators
IN SUMMARY Key Project Differentiators In one of the world's most attractive Strong ESG focus embedded from jurisdictions for mining and mineral outset of Project investment Massive high grade orebody and Deploying technologies developed production of ultra-high >99.5% to drive operational efficienc
Slide 33: Resource Total Magnetic Intensity Section
T H E A U S T R A L I A N VA N A D I U M P R O J E C T Resource Total Magnetic Intensity Section A S X : AV L Note: Information within this slide as detailed in ASX Announcement "Bankable Feasibility Study for Australian Vanadium Project" dated 6th April 2022. 33
Slide 34: Mining Layout
A S X : AV L T H E A U S T R A L I A N VA N A D I U M P R O J E C T Mining Layout 34
Slide 35: Pit, Beneficiation Plant and Processing Plant
T H E A U S T R A L I A N VA N A D I U M P R O J E C T Pit, Beneficiation Plant and Processing Plant A S X : AV L 35
Slide 36: Nickel, Copper and Cobalt from tails stream
C O L L A B O R AT I O N W I T H B R YA H R E S O U R C E S L I M I T E D ( A S X : B Y H ) Nickel, Copper and Cobalt from tails stream • Bryah holds a suite of mineral rights including nickel, copper and gold over the Australian Vanadium Project at Gabanintha • AVL holds the mineral rights to vanad
Slide 37: Project Delivery
Project Delivery 37
Slide 38: Project Delivery
A S X : AV L A U S T R A L I A N VA N A D I U M P R O J E C T Project Delivery Planned Completed Ongoing Priorities 2022 Planned 2022/3 ✓ Exploration success – large high quality VTM ✓ BFS completion ‣ Key funding partner selection and resource financial close ‣ Financing and resource bank engagemen
Slide 39: Vertical Vanadium Integration
A S X : AV L VERTICAL VANADIUM INTEGRATION FOR ENERGY & PROCESSING STORAGE 39
Slide 40: Vanadium Electrolyte Plant
T H E A U S T R A L I A N VA N A D I U M P R O J E C T Vanadium Electrolyte Plant • Vanadium electrolyte plant being built at Kwinana industrial area, south of Perth • Partly funded by Australian Government manufacturing grant of $3.69m • Vanadium electrolyte technology provided by U.S. Vanadium LLC
Slide 41: VSUN Energy
Australian yY VANADIUM LIMITED VSUN Energy
Slide 42: AVL and VSUN Energy
VA N A D I U M I N E N E R G Y S T O R A G E AVL and VSUN Energy VSUN Energy was launched by AVL in 2016 to grow the vanadium redox flow battery (VRFB) market in Australia. VSUN Energy offers clients VRFBs from a range of manufacturers and is developing locally manufactured vanadium electrolyte. 42
Slide 43: Why use the VRFB for energy storage?
VSUN ENERGY Why use the VRFB for energy storage? Vanadium Lifespan over 20 Non-flammable Multiple daily Able to store Easy to scale electrolyte can be years with no making it safer cycles, with large amounts of power and reused degradation in than other 100% depth of energy for later energy indefini
Slide 44: Overview
VSUN ENERGY Overview VRFB sales and vanadium electrolyte supply • VSUN Energy supplies VRFBs for most market segments including utility, commercial and industrial, mining, standalone power systems and rural residential. • Independence Group (ASX: IGO) to trial a standalone power system based on a 30
Slide 45: VRFBs – long duration energy storage
VSUN ENERGY VRFBs – long duration energy storage 10kW for 10 hours 200kW for 4 hours 15MW for 4 hours 5kW for 6 hours 45
Slide 46: Australian Vanadium Project
A S X : AV L IN SUMMARY Australian Vanadium Project Right People Right Project The Australian Vanadium Project is a International vanadium experience, globally significant resource, strong skilled knowledgeable technical and business fundamentals, long mine life commercial team and focuses on more t
Slide 47: Appendices
APPENDICES 47
Slide 48: Offtake status - Vanadium
A S X : AV L Offtake status - Vanadium HBIS - Hebei Yanshan Vanadium and Titanium Industry Technology Research Co Ltd, a subsidiary of HBIS Group Chengsteel in China, one of the world’s largest steelmakers ▸ Letter of Intent to negotiate and sign a binding technical services and vanadium purchase ag
Slide 49: FeTi coproduct after vanadium extraction
FETI COPRODUCT MARKETS FeTi coproduct after vanadium extraction • 3.5mm crushed FeTi pellet ready for shipping “as is” after vanadium extraction • FeTi coproduct material has established market in Chinese blast furnaces. • Used as blast furnace refractory protection • Unique sale opportunity for AVL
Slide 50: Offtake status – FeTi coproduct
Offtake status – FeTi coproduct Letters of Intent have been signed for offtake of iron titanium (FeTi) coproduct from the Australian Vanadium Project. ▸ Non-binding and record interest of the buyers to support Hebei Province the Project and to negotiate and agree a binding ore sale contract. ▸ AVL h
Slide 51: Financial Sensitivities
Project Vanadium Pricing Sensitivity (A$) A S X : AV L V2O5 Pricing Scenarios The Australian Vanadium Project Year 1-5 (US$) $9.50/lb V2O5 $10.50/lb V2O5 $10.50/lb V2O5 $12/lb V2O5 Financial Sensitivities Year 6-25 (US$) $9.50/lb V2O5 $9.50/lb V2O5 $10.50/lb V2O5 $12/lb V2O5 pre-tax NPV8% (A$) $531m
Slide 52: Resource table
A S X : AV L GEOLOGY & MINING Resource table DOMAINS CATEGORY Mt V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI % Measured 11.3 1.14 43.8 13.0 9.2 7.5 3.7 Indicated 27.5 1.10 45.4 12.5 8.5 6.5 2.9 HG 10 Inferred 56.8 1.04 44.6 11.9 9.4 6.9 3.3 Subtotal 95.6 1.07 44.7 12.2 9.1 6.8 3.2 Measured - - - - - - - I
Slide 53: Ore Reserve Table
A S X : AV L GEOLOGY & MINING Ore Reserve Table . The Ore Reserve for the Australian Vanadium Project 2022 Bankable Feasibility Study is detailed in the table below. V2O5 Ore Reserve Mt V2O5% Fe2O3% TiO2% SiO2% LOI% Ore Reserve Mt production kt Proved 10.5 1.11 61.6 12.8 9.5 3.7 70.9 Waste 238.5 Pro
Slide 54: CMB Flowsheet
A S X : AV L CMB Flowsheet 54
Slide 55: Processing Plant Flowsheet
A S X : AV L Processing Plant Flowsheet 55
Slide 56: Key Risks & Offer Jurisdiction
KEY RISKS & OFFER JURISDICTION 56
Slide 57: Key Risks
A S X : AV L KEY RISKS 1. Introduction An investment in New Shares is subject to risks, some of which are beyond the control of AVL. The existence of risk means that the performance of the Company or the New Shares could be adversely affected. AVL does not guarantee any particular rate of return or
Slide 58: Key Risks
A S X : AV L KEY RISKS The highest risks to the Australian Vanadium Project are the availability of funding, low vanadium price at project start-up and extended periods of low vanadium pricing during the project life. Additional risks identified during the BFS include: • increasing costs of capital
Slide 59: Key Risks
A S X : AV L KEY RISKS Commodity prices The Company’s share price, future revenues and cash flows may be impacted by changes in the prices of mineral commodities (principally, vanadium). Commodity prices are influenced by physical and investment demand and may rise or fall. Fluctuations in commodity
Slide 60: Key Risks
A S X : AV L KEY RISKS Exploration Risk Development of AVL’s mineral exploration properties is contingent upon obtaining satisfactory exploration results. Mineral exploration and development involves substantial expenses and a high degree of risk, which even a combination of experience, knowledge an
Slide 61: Key Risks
A S X : AV L KEY RISKS Access to land The Company will experience delays and cost overruns if it is unable to access the land required for its operations. This may be as a result of weather, environmental restraints, native title, landholder’s activities or other factors. The Company’s exploration a
Slide 62: Key Risks
A S X : AV L KEY RISKS Climate change There are several climate-related factors that may affect the operations and proposed activities of the Company. The climate change risks particularly attributable to the Company include: • the emergence of new or expanded regulations associated with the transit
Slide 63: Key Risks
A S X : AV L KEY RISKS Community acceptance and reputation The ongoing support of the local communities in which AVL operates and the appropriate management of local community expectations is important to the successful operation of AVL’s projects and assets. AVL’s failure to effectively maintain an
Slide 64: Key Risks
A S X : AV L KEY RISKS Legal action AVL is subject to litigation risks. All industries, including the mining industry, are subject to legal claims, which claims may be with or without merit. Defence and settlement costs of legal claims can be substantial, even with respect to claims that have no mer
Slide 65: Key Risks
A S X : AV L KEY RISKS Risk of dilution Even if a shareholder participates in the Equity Raise, their percentage security holding in the Company may be diluted. Further, the Company may undertake additional offerings of securities in the future to raise capital as well undertaking as equity-funded a
Slide 66: Key Risks
A S X : AV L KEY RISKS 3. Offer and General Risks Liquidity risk There can be no guarantee that there will always be an active market for AVL’s shares or that the price of the Company’s shares will increase. There may be relatively few buyers or sellers of shares on the ASX at any given time, and th
Slide 67: Key Risks
A S X : AV L KEY RISKS General regulatory risks AVL's operations are subject to various Federal, State and local laws in Australia, South Africa and internationally, including those relating to mining, prospecting, development permit and licence requirements, industrial relations, environment, land
Slide 68: Key Risks
A S X : AV L KEY RISKS Government policy and taxation risk Changes in relevant mining laws, taxation laws, interest rates, other legal, legislative and administrative regimes and government policies in Australia or South Africa may have an adverse effect on the assets, operations and ultimately the
Slide 69: International Offer Restrictions
A S X : AV L INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or
Slide 70: International Offer Restrictions
A S X : AV L INTERNATIONAL OFFER RESTRICTIONS Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certainty an
Slide 71: International Offer Restrictions
A S X : AV L INTERNATIONAL OFFER RESTRICTIONS The New Shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who: is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act; • meets the
Slide 72: International Offer Restrictions
A S X : AV L INTERNATIONAL OFFER RESTRICTIONS United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and M
Slide 73: australianvanadium.com.au
+61 (08) 9321 5594 info@australianvanadium.com.au Level 1, 85 Havelock Street, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL australianvanadium.com.au
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