Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Investor Presentation (November 2019)
46 slides from Australian Vanadium's investor presentation, November 2019
Slide 1: Australian Vanadium Limited Corporate Presentation
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Australian Vanadium Limited Corporate Presentation November 2019 | ASX: AVL ASX: AVL 1
Slide 2: Disclaimer
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market 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 th
Slide 3: Project Overview
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Project Overview PFS opex of US$4.15/lb V2O5 Awarded Major Project Status with potential to be the in September 2019 world’s lowest cost vanadium producer Bushveld-type VTM deposit High-purity (99.4%)
Slide 4: Corporate Snapshot
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Corporate Snapshot Key Statistics (30/09/19) Ordinary shares 2.55b on issue Share price A$0.012 Average Daily 5,418,291 Traded Volume Market cap A$28m (undiluted) Cash ~A$8.1m Shareholders 6,770 Enterp
Slide 5: Experienced Team
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Experienced Team Vincent Algar – Managing Director Geologist with over 25 years’ experience in the mining industry spanning underground and open cut mining operations, greenfields exploration, project
Slide 6: The Australian Vanadium Project – Developments
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market The Australian Vanadium Project – Developments Recent Announcements 2019 29 Oct Geraldton Processing Plant Land Option Agreement 25 Oct Drilling Program Completed 24 Sept R&D Refund 23 Sept Successful
Slide 7: Project Location
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Project Location • WA Ranked 2nd best mining investment location globally. • Located in an active mining region – close to road, rail, port, natural gas. • 11.5km of known mineralisation under 100% AVL
Slide 8: Resource Table & Ore Reserve
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Resource Table & Ore Reserve 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 Grad
Slide 9: Project Geology
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Project Geology SW NE • Bushveld-type VTM deposit with significant ground position for project development and highly consistent geology over strike. • Massive magnetite, averaging 15-20 metres in true
Slide 10: Planned Infrastructure
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Planned Infrastructure ASX: AVL 10
Slide 11: Model of Proposed Plant
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Model of Proposed Plant Open Pit CMB Plant Roaster & Refinery Section ASX: AVL 11
Slide 12: PFS Financial Model
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market PFS Financial Model V2O5 Product Pricing Scenarios November 2018 Preferred Case: Year 1–5 $8.67/lb V2O5 $13/lb V2O5 $13/lb V2O5 Year 6–17 $8.67/lb V2O5 $8.67/lb V2O5 $13/lb V2O5 Pre-tax NPV8% $230M $44
Slide 13: Major Project Status
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Major Project Status Major Project Status Awarded • The Australian Vanadium Project was awarded Major Project Status by the Federal Government in September 2019. • Award enables AVL to access streamlin
Slide 14: Land Option Agreement
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Land Option Agreement Vanadium Processing Plant Location • AVL has identified a potential location east of Geraldton, as a possible site for its vanadium processing plant. Benefits of Geraldton Locatio
Slide 15: Resource Extension
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Resource Extension Drilling to Extend Project Life • Conversion of Resources to Reserves on 55.3Mt of High-Grade ore zone. • Completed Phase 1 program comprised 13 RC holes for 1,224 metres. • Mineral
Slide 16: Testwork Update
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Testwork Update Pilot Scale Testwork Pilot Scale Testing is Crucial Testwork at scale is a key differentiator of successful projects, allowing potential problems to be identified and remedied before co
Slide 17: Process Improvement
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Process Improvement Benchscale Testwork High-Purity Product High-purity 99.4% vanadium pentoxide (V2O5) produced from pre-pilot testwork – expected to be AVL’s standard mine product. • Provides greater
Slide 18: Pilot Roast Work
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Pilot Roast Work Metso Selected For Pilot Roast Work Metso was chosen because of its world-renowned expertise in Grate Kiln (GK) processing solutions. • Tests have shown a substantial increase in vanad
Slide 19: Calcine By-Product
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Calcine By-Product Calcine By-Product Opportunity • Testwork being undertaken to establish whether calcine can be upgraded from a lower-grade concentrate (<55% Fe) to a higher-grade product (>62% Fe),
Slide 20: Social Responsibility
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Social Responsibility The Meekatharra Community AVL sponsors the Stephen Michael Foundation. • Engaging kids with school; improving lives through sport. Subsidiary VSUN Energy sponsors The Meeka Howler
Slide 21: Carbon Footprint
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Carbon Footprint Our Approach Regulatory Context • AVL is committed to minimising GHG • Legislation requires monitoring and emissions. reporting of emissions. • Largest contributors to emissions • The
Slide 22: Permitting Progress
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Permitting Progress Finalised • Water impact assessment ✓ • Flora and fauna field assessments ✓ • Heritage access agreements ✓ • Stygofauna/troglofauna sampling ✓ • Mining licence application ✓ • Major
Slide 23: Project Summary
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Project Summary Completed • Exploration success – large high quality VTM resource defined ✓ • Resources and Reserves for initial 17-year mine, significant potential for extension ✓ • Completed PFS show
Slide 24: Project Summary
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Project Summary Ongoing • Large scale pilot testing & DFS • Environmental impact studies and heritage review • Mining agreement & mining licence approval • Native Title • Financing – partnership agreem
Slide 25: The Path Forward
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market The Path Forward The Australian Vanadium Project Completion of PFS/Options Order long lead Studies (±25%) costing ✓ time equipment Commence Commence discussions to Commence work on PFS ✓ obtain financi
Slide 26: Vanadium Market Overview
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Vanadium Market Overview Primary: Steel Accounts for 90% of current global vanadium consumption. Vanadium electrolyte functions as cathode and anode in vanadium redox flow batteries (VRFBs) Emerging: E
Slide 27: Vanadium Production
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Vanadium Production ASX: AVL 27
Slide 28: Production vs Consumption
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Production vs Consumption Production/consumption in balance in late 2018. Chinese production capacity at limits. 3,000 MTV shortfall in 2018 14% of world production from 3 primary mines (Brazil, South
Slide 29: Steel Market
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Steel Market Primary Market Chinese Rebar Steel is the primary market Chinese rebar consumption is and price driver of vanadium a key metric – new standards – accounting for 90% of require increased va
Slide 30: Steel Market
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Steel Market Vanadium has historically experienced long periods of low prices, followed by periods of high prices – lowest quartile producers are best positioned to survive and benefit. Recent price dr
Slide 31: Energy Storage Market
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Energy Storage Market Emerging Market Energy storage is an emerging market for vanadium, accounting for around 2% of global vanadium consumption with significant growth potential. Vanadium in Batteries
Slide 32: Vanadium Redox Flow Batteries
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Vanadium Redox Flow Batteries Redox Flow Batteries • A redox flow battery is made up of two tanks filled with electrolyte fluid – the electrolyte acts as cathode and anode and tank size determines batt
Slide 33: VRFB Characteristics
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market VRFB Characteristics An energy battery, able The VRFB is non-flammable, to store large amounts making it safer than other of energy for later use batteries on the market. It’s easy to scale, just add C
Slide 34: VSUN Energy
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market VSUN Energy About VSUN Energy VSUN Energy is AVL’s fully owned subsidiary, launched in 2016 to grow the VRFB market in Australia. Its first VRFB installation was at a native tree nursery in Busselton,
Slide 35: Global VRFB Update
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Global VRFB Update ASX: AVL 35
Slide 36: VRFB Installations in China
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market VRFB Installations in China A new 5MW/20MWh vanadium redox flow battery project was announced at the vanadium and titanium conference in China, Sept 2019. China committed to significant new VRFB instal
Slide 37: Leasing Vanadium Electrolyte
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Leasing Vanadium Electrolyte Direct Leasing Model Indirect Leasing Model Vanadium Vanadium Supplier Supplier Sells electrolyte to Sells electrolyte to battery company financial intermediary VRFB VRFB F
Slide 38: Contact Us
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Contact Us Australian Vanadium Limited | ASX: AVL +61 (08) 9321 5594 info@australianvanadium.com.au Level 1, 85 Havelock Street West Perth, Western Australia 6005 www.australianvanadium.com.au ASX: AVL
Slide 39: Resources by Fault Block
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Resources by Fault Block ASX: AVL 39
Slide 40: Industry Cost Curve
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Industry Cost Curve ASX: AVL 40
Slide 41: Crushing, Milling & Beneficiation
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Crushing, Milling & Beneficiation ASX: AVL 41
Slide 42: Refining: V2O5 Production
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Refining: V2O5 Production ASX: AVL 42
Slide 43: Total PFS Opex Breakdown
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Total PFS Opex Breakdown Total Opex US$/lb V₂O₅ $/a US$/lb V2O5 Mining * $1.37 $31M $0.09 CMB* $0.71 $16M Refinery* $2.05 $46M $1.45 Other* $0.10 $2M By-product credits* -$0.07 -$2M Total $4.15 $93M $2
Slide 44: Total Capex Breakdown
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market Total Capex Breakdown Total Capex US$ Comment US$ Processing Plant $149.76M $35,280,000 $22,320,000 Infrastructure $110.160M $28,800,000 Subtotal $259.92M Improve in Mining & Pre-Strip* $22.32M DFS Gas
Slide 45: ASX: AVL
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market ASX: AVL 45
Slide 46: ASX: AVL
About The Market Steel Energy Introduction The Project Path Forward Overview Market Storage Market ASX: AVL 46
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