Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Investor Presentation (May 2019)
39 slides from Australian Vanadium's investor presentation, May 2019
Slide 1: The Australian Vanadium Project Corporate Presentation
The Australian Vanadium Project Corporate Presentation May 2019 | ASX: AVL
Slide 2: Disclaimer
DISCLAIMER 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 of the information. COMPETENT PERSON REFERENCES Competent P
Slide 3: Developing the Globally Significant High-Grade Australian Vanadium Project
Developing the Globally Significant High-Grade Australian Vanadium Project Pre-feasibility study completed showing strong economic fundamentals. Definitive study well underway with a highly experienced vanadium expert team. 5 ASX: AVL
Slide 4: Corporate Snapshot
Australian Vanadium Limited Corporate Snapshot Key Statistics (as at 10-5-19) Ordinary shares on issue 1,97m AVL Share Price History $0.080 45,000,000 Share price A$0.02 $0.070 40,000,000 Market Cap (undiluted) A$38m 35,000,000 $0.060 Cash ~A$6m 30,000,000 $0.050 Shareholders 6,700 25,000,000 $0.040
Slide 5: Investment Highlights
Australian Vanadium Limited Investment Highlights • Globally significant project with high-grade Resources and Reserves hosted in magnetite-bearing At a vanadium price of US$13/lb, the rocks. project has a post-tax NPV₈% of • Pre-feasibility study completed with strong economic fundamentals through
Slide 6: Expert Vanadium Team
Expert Vanadium Team Vanadium expertise separates AVL from other explorers At Australian Vanadium Limited, our management is committed to fast-track Vincent Algar this significant global resource. Managing Director Our team brings together experts in geoscience, mining, chemical engineering, marketi
Slide 7: Expert Vanadium Team
Expert Vanadium Team Vanadium expertise separates AVL from other explorers AVL is supported by a group of highly skilled external consultants which includes: ASX: AVL 9
Slide 8: The Australian Vanadium Project
The Australian Vanadium Project 10 ASX: AVL
Slide 9: Financial Model Results - PFS
Financial Model Results - PFS NPV Sensitivity V - Price 30% • C1 costs $4.15/lb – optimisation underway 20% • Mineral Reserve defined to support 17 year initial Mine schedule 10% • Conventional Vanadium salt roast processing route selected Capex Exchange Rate • Significant potential to improve proje
Slide 10: The Australian Vanadium Project
The Australian Vanadium Project Project in active mining region close to road, rail, port and natural gas WA ranked 2nd in the world’s best mining investment locations ASX: AVL 12
Slide 11: Tenure and Location Plan
The Australian Vanadium Project Tenure and Location Plan 11.5km of known mineralisation under 100% AVL control ASX: AVL 13
Slide 12: Geology
The Australian Vanadium Project Geology • Bushveld-type VTM deposit, drilled over 11km of AVL controlled strike • AVL holds significant ground position for project development • Highly consistent geology over 11.5km of AVL controlled strike • Massive magnetite averaging 15– 20m in true thickness ASX
Slide 13: Proposed Pit
PROPOSED PIT 71 | 500metres Australian Q@ a THE AUSTRALIAN VANADIUM PROJECT GEOTECHNICAL HOLES TO TEST WESTERN PIT WALL ASX: AVL March 2019 Australian BY vlan MINING SEQUENCE YEAR 0 - 14 December 2018 MINING SEQUENCE YEAR 0 MINING SEQUENCE YEAR 0-4 MINING SEQUENCE YEAR 4 - 8 MINING SEQUENCE YEAR 14
Slide 14: Planned Infrastructure
The Australian Vanadium Project Planned Infrastructure 16 ASX: AVL
Slide 15: ASX: AVL
ASX: AVL 17
Slide 16: Highlights
Highlights • Plant Capital US$260M (±25%) • Total project cost $US$354M • Production rate of 22.5Mlb V₂O₅ or 5,650MTV • Ability to produce high purity V₂O₅ powder for superalloys and energy storage • 17-year initial mine life defined, potential for extension • Resource strike covers 11km, current mi
Slide 17: Total PFS Opex Breakdown
Total PFS Opex Breakdown US$/lb V2O5 $0.09 Total Opex US$/lb V₂O₅ $/a $1.45 Mining * $1.37 $31M CMB* $0.71 $16M Refinery* $2.05 $46M $2.15 Other* $0.10 $2M By-product credits* -$0.07 -$2M Total $4.15 $93M * Identified opportunities to improve in DFS $0.73 Mining CMB Refinery Other ASX: AVL 19
Slide 18: Total Capex Breakdown
Total Capex Breakdown US$ $35,280,000 $22,320,000 Total Capex US$ Comment $28,800,000 Processing Plant $149.76M Infrastructure $110.160M $149,760,000 Subtotal $259.92M Mining & Pre-Strip* $22.32M Improve in DFS $110,160,000 Gas Pipeline $28.8M Own 50% Sulphide Float $7.92M Starts in Yr 3 Owner's Con
Slide 19: Ongoing Testwork
Ongoing Testwork • Pilot scale metallurgical test program on 30 tonnes underway • Focus is on refining plant conditions and locking in optimisation opportunities • Life-of-mine blends and recoveries being tested to confirm globally unique vanadium mass yields of over 60% • Testwork at scale a key di
Slide 20: Social Responsibility
Social Responsibility Alongside the legal responsibilities for native title claims and environmental regulations, AVL is keen to ensure that its mining activities in the Meekatharra region bring additional benefits AVL sponsors the Stephen Michael Foundation which helps to engage children in school
Slide 21: Carbon Footprint
Carbon Footprint Lifecycle of Vanadium Minimising supply chain emissions and protection of the environment including air quality are key elements of AVL’s strategy. The company is undertaking numerous tasks in this area as part of its environmental compliance obligations, including; • A full project
Slide 22: The Australian Vanadium Project Path Forward
The Australian Vanadium Project Path Forward ✓ Completion of PFS, options studies, Mineral Reserve – completed December 2018 ✓ Pilot Study sample collection (30t) – commenced January 2019 • Pilot Study, Environmental Impact Studies, Heritage review – August 2019 • Financing – partnership agreement /
Slide 23: The Australian Vanadium Project Path Forward
The Australian Vanadium Project Path Forward Pilot Study and Definitive Feasibility Study (DFS) components Construction ✓Completion of Order long lead PFS/Options time equipment Studies (±25%) costing 2018 2019 2020 2021 2022 Front End Startup, commissioning Obtain financing Engineering and ramp-up
Slide 24: Vanadium Market
Vanadium Market Vanadium supply for steel currently in deficit, new markets for energy storage rapidly expanding • Demand projections indicate market to remain in deficit in all sectors. • Increased demand from VRFBs and other energy applications growing exponentially. • Tightened environmental and
Slide 25: Summary
Summary AVL has a globally significant vanadium resource with a team of experts experienced in the extraction of vanadium using conventional processing of vanadium magnetite • Pre-feasibility study completed with strong • Developing a vertically integrated vanadium economic fundamentals through all
Slide 26: Vanadium Markets
\/ y Australian VANADIUM LIMITED Vanadium Markets Steel
Slide 27: Metal Bulletin V2O5 Monthly Midpoint Average Price
Metal Bulletin V₂O₅ Monthly Midpoint Average Price Inflated to January 2019 US$ $40.00 $34.63 $35.00 $29.76 • 15-year average price US$8.67 in $30.00 2018 dollars. $25.00 • Historically, vanadium pricing has US$/Pound V₂O₅ experienced long periods of low price followed by periods of price rises. $20
Slide 28: Vanadium Markets – Steel
Vanadium Markets – Steel Steel remains the price driver and primary market for vanadium (92% of vanadium consumption) • Key metric is Chinese rebar consumption • New standards for Chinese rebar require increased vanadium use, doubling to rest-of-world standards (implemented today) • Risk of substitu
Slide 29: Vanadium Markets – Energy Storage
Vanadium Markets Energy Storage
Slide 30: Vanadium Markets – Energy Storage
Vanadium Markets – Energy Storage Unique characteristics of Vanadium Redox Flow Batteries (VRFBs) • VRFBs provide a way to store and re-supply renewable energy. Their very high capacity is ideal for large-scale energy storage applications, unlocking the full potential of renewables while maintaining
Slide 31: VSUN Energy
VSUN Energy Vertical integration strategy • AVL’s 100% owned subsidiary VSUN Energy is focused on growing the market for VRFBs • Involvement in Future Battery Industries Cooperative Research Centre application • First VRFB installed in Western Australia at a native tree nursery with 2.5 years contin
Slide 32: Status of VRFB market
Status of VRFB market Vanadium price rises have led to innovations from manufacturers, with new entrants also entering the market • Stack technology advancements, utilising welded stack technology • Leasing of electrolyte, reducing capex and transferring some of the cost to opex • Changing power to
Slide 33: VRFB Manufacturers
VRFB Manufacturers The number of manufacturers continues to grow, with a wide range of sizing available ASX: AVL 35
Slide 34: Technical appendices
Technical appendices 37
Slide 35: Resource Table
Resource Table Material JORC Resource Class Million Tonnes V2O5% Fe% TiO2% SiO2% Al2O3% LOI% Measured 10.2 1.11 42.7 12.6 10.2 8.0 3.9 Indicated 12.1 1.05 43.8 11.9 10.6 7.6 3.5 High Grade Inferred 74.5 0.97 42.1 11.2 11.6 7.6 3.4 Subtotal – High Grade 96.7 1.00 42.4 11.4 11.3 7.7 3.5 Indicated 28.6
Slide 36: Crushing, Milling and Beneficiation (CMB)
Crushing, Milling and Beneficiation (CMB) ASX: AVL 39
Slide 37: Refining – V2O5 Production
Refining – V₂O₅ Production 40 ASX: AVL
Slide 38: Australian Vanadium Limited
Australian VANADIUM LIMITED y
Slide 39: Contact Us
Contact Us +61 (08) 9321 5594 info@australianvanadium.com.au Level 1, 85 Havelock Street West Perth, Western Australia 6005 www.australianvanadium.com.au Australian Vanadium Limited | ASX: AVL
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