Slide 1: Unlocking Steelpoortdrift as one of the world's largest and highest-grade Vanadium projects
Unlocking Steelpoortdrift as one of the world’s largest and highest-grade Vanadium projects for a new era Mining Indaba & 1-2-1 Investor Presentation May 2022 WWW.VR8.GLOBAL ASX:VR8
Slide 2: Disclaimer
Disclaimer This presentation does not constitute investment advice. This presentation has been prepared by Vanadium Resources Limited (“the Company” or ASX:VR8) to provide summary information about the Company and its activities as at the date of this presentation (May 2022), Neither this presentati
Slide 3: An emerging Vanadium producer
An emerging Vanadium producer Fully funded One of the world’s PFS indicates strong Ore body easy to to FID largest and highest- financial outcomes with mine & upgrade grade vanadium post-tax NPV8% of US$1.2B, to concentrate deposits 45% IRR post-tax Using conventional Salt Mining license Infrastruct
Slide 4: Corporate Overview
Corporate Overview Corporate structure (ASX: VR8) as at 30 April 2022 Jurie Wessels | Exec. Chairman Board ~473m A$0.145 Michael Davy | Non-Executive Director Shares on issue Share price John Ciganek | Non-Executive Director (undiluted) ~A$68m A$0.046 – A$0.18 Market cap 52-week range (~5% of att. N
Slide 5: Board & Management
Board & Management JURIE EUGENE MICHAEL JOHN DANIËL WESSELS NEL DAVY CIGANEK ELLIS Executive Chairman Chief Executive Officer Non-Executive Director Non-Executive Director CFO Jurie Wessels has 26 years’ experience Eugene Nel has 25 years’ experience as Michael Davy is an Australian executive John C
Slide 6: Global Demand Forecast
Global Demand Forecast Forecasters expect over Current 1,200GW Could add up to Steel: 90% demand of battery capacity to be 10,000mtV added between today of demand into an VRFB’s: 3-5% and 2050, with already Aerospace: 3% approximately 600GW undersupplied before 2025.1 market. 2 VRB Vanadium Consumpt
Slide 7: Global Supply and Demand Dynamics
Global Supply and Demand Dynamics New Capacity Potential China as a net importer of Vanadium? Production Expansion between 2020-2025 China Monthly Net Vanadium Exports 1000 $20.00 50000 $18.00 45000 500 $16.00 40000 Metric Ions Vanadium $14.00 V2O5 Price (US$/lb. V2O5) 35000 0 $12.00 30000 Nov-19 No
Slide 8: V2O5 Price Dynamics
V2O5 Price Dynamics Projection of potential MtV demand change 2020-2025 Vanadium Pentoxide 98% min Europe US$/lb 70,000 60,000 Metric Ions Vanadium 50,000 40,000 30,000 20,000 10,000 0 2021e 2022e 2023e 2024e 2025e Change in Steel Production Change in Specific V Consumption in Steel Energy Storage 1
Slide 9: Located in the Bushveld Complex
Located in the Bushveld Complex This world-renowned mining location is host to several mining operations, multiple major mining companies are active in the area, and is located in close proximity to existing infrastructure. Other Mines in the Bushveld Complex Vametco Vanadium Mine, Mokopane Bushveld
Slide 10: Steelpoortdrift Resource: Intrinsic Qualities
Steelpoortdrift Resource: Intrinsic Qualities Sufficient “Mineable” High grade Mineralogy to Resource to resource to to reduce reduce Opex supply reduce Opex Opex and Capex product and Capex economically 10 WWW.VR8.GLOBAL
Slide 11: JORC Resource, Mineralisation
JORC Resource, Mineralisation • Global Mineral Resource of 662Mt at 0.77% V2O5 (0.45% V2O5 cut-off) • High grade Mineral Resource of 188Mt at 1.23% V2O5 (0.9% V2O5 cut-off) • Mineralisation outcrops at surface, meaning amenable to open pit mining • Mineralisation dips shallowly (~10º) – less waste t
Slide 12: Global Primary Resources
Global Primary Resources TONNAGE CONCENTRATE GRADE IN SITU GRADE PRODUCTION STAGE DEVELOPMENT STAGE The above chart compares Resources reported under different codes and companies at different stages of development as detailed in ASX Announcement titled “Scoping Study Confirms Viability of V2O5 Prod
Slide 13: PFS Metrics
PFS Metrics Concentrator $200M 18 12,5 $147M 18,5 39 + Salt Roast Mlbs/a Leach Plant Capex Months Ktpa Expansion Ktpa of V2O5 for to build of V2O5 for Capex in of V2O5 for 25 first year 6 next years (over 6 years 19 years only 12% of resource) 13 WWW.VR8.GLOBAL
Slide 14: Financial Returns of PFS
Financial Returns of PFS US$5.8 US$231 NPV US$139 25 45% BILLION MILLION 8% MILLION months EBITDA EBITDA (post tax) AV. Payback IRR LOM p.a. US$1.2B Free cash of initial (post tax) (attributable flow p.a. capex US$884M) (27 years) 14 WWW.VR8.GLOBAL
Slide 15: Aspirant Producers / Peer Comparison
Aspirant Producers / Peer Comparison Steelpoortdrift (VR8) Bushveld- TMT Gabanintha2 AVL Project3 Pre-Feas. Stage Mokopane1 Pre- Definitive-Feas. Definitive Feas. Feas. Stage Stage stage V2O5 Price US$9.03/lb US$7.50/lb US$10.88/lb US$10.50/lb Market Cap (undiluted) Au$68M n.a. Au$123M Au$240M NPV (
Slide 16: Current Producers / Peer Comparison
Current Producers / Peer Comparison Steelpoortdrift (VR8) Largo1 annual Pre-Feas. Stage financial results ending Dec 2021 V2O5 Price US$9.03/lb US$7.89/lb Market Capitalization ~Au$68M ~C$700M ($Au771M) (undiluted) Gross Revenue p.a. US$280m (increasing US$198m to US$450m) Average RoM grade over LOM
Slide 17: Timeline to Production
Timeline to Production TIMELINE H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 - $5M DFS Offtake Agreements Debt Financing Investment Decision Commence - $200M Construction Concentrate Production Flake +$5.8B Production 17 WWW.VR8.GLOBAL
Slide 18: DFS Progress & Expected Newsflow
DFS Progress & Expected Newsflow Trial ESG Pilot plant Preparation Technical DFS mining Initiatives campaigns to raise Progress Completion and bulk Progress construction Q3 2022 sampling finance 18 WWW.VR8.GLOBAL
Slide 19: Steelpoortdrift Offtake and Project Financing
Steelpoortdrift Offtake and Project Financing Commenced process toward securing binding offtake and project financing Offtake Agreement Project Financing • A process is underway • Indicative debt sizing analysis received from several potential debt with a range of financiers / advisors international
Slide 20: ESG Initiatives
ESG Initiatives Dry deposition Renewable of tailings electricity supply Co-products Community Dewatering of tailings Inclusion of photo Studies underway to Initiatives to maximize material means reduced voltaic solar plant unlock value from community involvement risk exposure from reduces carbon oth
Slide 21: Why is VR8's Project World Class?
Why is VR8’s Project World Class? MINING PHENOMENAL ONLY 12% OF JURISDICTION FINANCIAL RESOURCE WITH METRICS MINED IN 25Y INFRASTRUCTURE & EXPERTISE COMPETITIVE EXPERIENCED OPEX AND MANAGEMENT CAPEX (LOWEST TEAM QUARTILE) 21 WWW.VR8.GLOBAL
Slide 22: Contact
contact@VR8.global www.VR8.global AUS: +61 8 6158 9990 RSA: +27 83 212 6669 Please contact: Jurie Wessels: jurie@lexrox.co.za Eugene Nel: enel@vr8.global
Slide 23: Annexure: Peer comparison Table
Annexure: Peer comparison Table Company Stage Resource Resource Resource Concentrate Code Project Information Source Category Tonnes Grade Grade 43-101 Technical Report dated 26/10/2017 largoresources.com/operations/maracas-menchen-mine Measured, https://www.largoinc.com/news/news- Indicated details