Largo Physical Vanadium Corp. · TSXV:VAND
Largo Physical Vanadium — Investor Presentation (May 2023)
20 slides from Largo Physical Vanadium's investor presentation, May 2023
Slide 1: Largo Physical Vanadium: Invest in a greener future
LARGO PHYSICAL VANADIUM Invest in a greener future Investor Presentation May 2023 TSX.V: VAND, OTCQX: VANAF www.lpvanadium.com
Slide 2: Disclaimers
DISCLAIMERS DISCLAIMER Largo Physical Vanadium Corp. (“VAND” or “VANAF”) has not authorized anyone to provide prospective investors with additional or the increased adoption of VRFB technology generally; and global interest in and uptake of green products containing vanadium. different information.
Slide 3: Investment Summary
INVESTMENT SUMMARY Largo Physical Vanadium Corp. (TSX.V: VAND, OTCQX: VANAF) is a vanadium holding company that purchases and holds physical vanadium Physically backed investment providing direct exposure to vanadium price Advised by Largo, a tier one vertically integrated, mining and vanadium flow
Slide 4: Capital Structure (TSX.V: VAND, OTCQX: VANAF)
CAPITAL STRUCTURE (TSX.V: VAND, OTCQX: VANAF) Share Price (C$/sh)1 $1.80 VAND Vanadium Unit Portfolio Price Since Inception 11.00 Shares Outstanding (mm) 16.82 10.50 Options/Warrants (mm) Nil Vanadium Unit Value (US$/lb V2O5 eq) 10.00 Fully-Diluted (mm) 16.82 9.50 Market Cap (C$mm)1 $30.3 9.00 Cash
Slide 5: Vanadium Demand Driven by New Use Cases
VANADIUM DEMAND DRIVEN BY NEW USE CASES Growth in VRFBs may put upward pressure on prices without new supply • In tight market the 2017/2018’s price increase was driven by revision to Chinese rebar standards • VAND is expected to be a demand driver in small spot vanadium market • Symbiotic Relations
Slide 6: 185 Operational VRFB Installations, Just Getting Started
185 OPERATIONAL VRFB INSTALLATIONS, JUST GETTING STARTED ~195,000 kWh of power ~743,000 kWh of energy “fundamental cost advantage in flow cells with an asterisk: given the low cost electroactives. Vanadium works today. If vanadium was super low cost and it had a stable price, we could all go home. O
Slide 7: Large Greenshoots in China Leading the Show
LARGE GREENSHOOTS IN CHINA LEADING THE SHOW Investment and Planned Deployments Could Lead to Massive Growth April 10, 2023: China Vanadium Energy • Expects cumulative 180 GWh of battery installation by 2030, requiring 1.44 million tonnes of V2O51 Storage (Hubei) Technology Co., Ltd. and Shanghai Ele
Slide 8: VAND:TSXV / VANAF:OTCQX Structure
VAND:TSXV / VANAF:OTCQX STRUCTURE Shareholders Technical Advisory Agreement Safekeeping Agreement Marketing & Financial Advisory Protected Rental Protected Tanks Income Warehouses V2SO4 Commercial Electrolyte Vanadium Products 8
Slide 9: Summary
SUMMARY Opportunity to invest in the underlying commodity associated with a superior energy transition technology and its role in major global ESG initiatives Physical ownership with secure title and transparent market pricing Vanadium electrolyte rental structure expected to cover a portion of VAND
Slide 10: Appendix
APPENDIX LPV |.
Slide 11: Vanadium: Supporting the New Economy
VANADIUM: SUPPORTING THE NEW ECONOMY Vanadium is key transition metal used in green steel and energy storage applications. Decarbonization expected to drive fast increases in demand. Demand for low-carbon technology should require 173% Vanadium supports the ESG investment case with more vanadium pro
Slide 12: Vanadium Market Overview
VANADIUM MARKET OVERVIEW Global Vanadium Supply Global Vanadium Demand By Region By Region • Total market size of ~$4 billion at $9 / lb V2O5; Vast majority of market transacts on annual contracts; 88.8% 2.8% China 53% 4.0% • Inelastic Supply: ~70% of vanadium is byproduct Russia 20% 4.4% of steel p
Slide 13: Current Supply Deficit to Persist
CURRENT SUPPLY DEFICIT TO PERSIST • Difficult and lengthy to bring new vanadium to market; Largo’s Maracás • Lower iron ore prices and Chinese restrictions aiming to reduce carbon Menchen Mine is only new vanadium mine in over ~30 years emissions are expected to decrease production Historical Vanadi
Slide 14: VRFB: Batteries Designed to Last for Decades
VRFB: Batteries Designed to Last for Decades Vanadium electrolyte in cathode and anode eliminating cross contamination Negative Vanadium Solution Batteries last for decades, are reusable, and non-degrading electrolyte allows for unlimited use Positive Vanadium ~40 to 50% of battery cost is vanadium
Slide 15: VAND & VRFB: Innovative Business Model
VAND & VRFB: Innovative Business Model Lithium Price vs. Li-ion Battery Cost For Illustrative Purposes Only VRFB Cost Breakdown Ownership Lithium Price Li-ion Battery Cost Vanadium Price vs. VRFB Cost Other Component Vanadium For Illustrative Purposes Only Costs Cost Drastically reduces cost of VRFB
Slide 16: Long Duration Energy Storage Could Drive Demand
LONG DURATION ENERGY STORAGE COULD DRIVE DEMAND Additional Annual V Demand Through 2030 v. LDES Penetration Rate 350,000 180% 160% 300,000 McKinsey estimates a cumulative installed long Additional V Demand (% of 2021 Demand) 140% • Vandium Demand (mt V) 250,000 120% duration energy storage capacity
Slide 17: Management and Directors
Management and Directors Paul Vollant Carmelo Marrelli Jonathan Lee Justin Reid John Kanellitsas CEO CFO Chairman Director Director Over 15 years of experience in Over 20 years of providing VP at Arias Resource Capital with over 19 years of Geologist and capital markets executive with +20
Slide 18: VAND: Operating Overview
VAND: OPERATING OVERVIEW VAND Details Name: Largo Physical Vanadium Corp. Exchange: TSX-V: VAND, OTCQX: VANAF • Officers: CEO, CFO and Corporate Secretary. Governance: • Directors: 6 – including the CEO • Invest and hold a minimum of 90% of total net assets in physical vanadium. Objectives: • Provid
Slide 19: Key VAND Agreements
KEY VAND AGREEMENTS VAND entered into key agreements with Largo and Sprott Provide marketing and capital markets support; and Marketing and Financial Advisory Agreement Provide advice and recommendations to Board of Directors in respect of VAND’s strategy and restrictions, including, whether pot
Slide 20: Contact Information
Contact Information Paul Vollant CEO Tel: +41.796.630.895 Email: pv@lpvanadium.com 55 University Avenue Suite 1105 Toronto, Ontario M5J 2H7 TSX.V: VAND, OTCQX: VANAF www.lpvanadium.com
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