Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Investor Presentation (March 2019)
36 slides from Australian Vanadium's investor presentation, March 2019
Slide 1: The Australian Vanadium Project Corporate Update
The Australian Vanadium Project Corporate Update March 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: The Australian Vanadium Project
The Australian Vanadium Project 3 ASX: AVL
Slide 4: Post-tax NPV8% of US$616 million at US$13/lb
The Australian Vanadium Project At a vanadium price of US$13/lb, the project has a post-tax NPV₈% of: US$616 million 4 ASX: AVL
Slide 5: Investment Summary
The Australian Vanadium Project | Investment Summary Globally significant vanadium resource with a team of experts experienced in the extraction of vanadium using conventional processing of vanadium magnetite • Significant project with high-grade Measured, AVL Share Price History Indicated and Infer
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, including: ASX: AVL 7
Slide 8: 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 9: The Australian Vanadium Project Location Diagram
The Australian Vanadium Project Location Diagram ASX: AVL 9
Slide 10: The Australian Vanadium Project Tenure and Location Plan
The Australian Vanadium Project Tenure and Location Plan ASX: AVL 10
Slide 11: The Australian Vanadium Project 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 • Consistent geology over 11km of AVL controlled strike • Massive magnetite averaging 15–20m in true thickness ASX: AVL 11
Slide 12: Proposed Pit and Mining Sequence
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 13: Planned Infrastructure
The Australian Vanadium Project Planned Infrastructure 13 ASX: AVL
Slide 14: ASX: AVL
ASX: AVL 14
Slide 15: Financial Model Results
Financial Model Results NPV Sensitivity V - Price 30% • C3 costs $6.05/lb 20% • Well defined orebody and well understood processing route 10% • US$616M NPV project assuming V pricing scenario of $13/lb over Capex Exchange Rate initial project life • Significant potential to improve project economics
Slide 16: Highlights
Highlights • Processing plant Capital US$260M (±25%), total cost $US$354M • Production rate of 22.5Mlb V₂O₅, or 5,650MTV • Ability to produce high purity V₂O₅ powder for superalloys and energy storage • 17-year initial mine life defined, potential for extension • Resource strike covers 11km, current
Slide 17: Total PFS Opex Breakdown
Total PFS Opex Breakdown US$/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 $0.73 improve in DFS Mining CMB Refinery Other ASX: AVL 17
Slide 18: Total Capex Breakdown
Total Capex Breakdown US$ $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 $7.92M Starts in Yr 3 Owner's Con
Slide 19: Crushing, Milling and Beneficiation (CMB)
Crushing, Milling and Beneficiation (CMB) ASX: AVL 19
Slide 20: Refining – V2O5 Production
Refining – V₂O₅ Production 20 ASX: AVL
Slide 21: Ongoing Testwork
Ongoing Testwork • 2019 drill program collecting 30 tonnes nearing completion to support large scale pilot program • Pre-pilot testwork underway to refine parameters • Focus is on refining test conditions and optimisation opportunities • Life-of-mine blends and recoveries being tested to confirm glo
Slide 22: Social Responsibility
Social Responsibility Alongside the legal responsibilities for native title claims and environmental regulations, AVL is keen to ensure that its mining activities in the Meekatharra region bring additional benefits to the region AVL sponsors the Stephen Michael Foundation which helps to engage child
Slide 23: The Australian Vanadium Project Path Forward
The Australian Vanadium Project Path Forward ✓ Completion of PFS, options studies, Mineral Reserve – completed December 2018 ✓ Pilot Study sample collection (30t) – commenced January 2019 • Pilot Study, Environmental Impact Studies, Heritage review – August 2019 • Financing – partnership agreement /
Slide 24: The Australian Vanadium Project Path Forward
The Australian Vanadium Project Path Forward Pilot Study and Definitive Feasibility Study (DFS) components Construction ✓Completion of Order long lead PFS/Options time equipment Studies (±25%) costing 2018 2019 2020 2021 2022 Front End Startup, commissioning Obtain financing Engineering and ramp-up
Slide 25: Vanadium Markets
\/ y Australian VANADIUM LIMITED Vanadium Markets Steel
Slide 26: Vanadium V2O5 Price History (US$/Pound)
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 $20.0
Slide 27: 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 28: Vanadium Markets – Energy Storage
Vanadium Markets Energy Storage
Slide 29: 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 30: 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 31: VRFB Manufacturers
VRFB Manufacturers The number of manufacturers continues to grow, with a wide range of sizing available ASX: AVL 31
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: Status of Australian VRFB market
Status of Australian VRFB market Australian installations increasing, with universities leading the way Year Size Location Customer Status 2015 30kW-130kWh Sydney, NSW University of NSW Operational 2016 10kW-100kWh Busselton, WA Native tree nursery Operational 2018 180kW-900kWh Melbourne, VIC Monash
Slide 34: Vanadium Market Future
Vanadium Market Future Vanadium supply currently in deficit • Current global producers can increase their supply to provide up to half of the current supply deficit • Increased demand from VRFBs and tightened environmental controls in China mean a change from the previous cycle – new supply is requi
Slide 35: 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 • Significant project with high-grade Measured, • Focus offers leverage to rising vanadium prices Indicated and Inferred vanad
Slide 36: 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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