Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Investor Presentation (March 2024)
39 slides from Australian Vanadium's investor presentation, March 2024
Slide 1: An Australian Vanadium Leader
An Australian Vanadium Leader March 2024 ASX:AVL
Slide 2: Compliance & Cautionary Forward-looking Statements
Compliance & Cautionary Forward-looking Statements 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.
Slide 3: Australian Vanadium Limited (AVL) – An Australian Vanadium Leader
Australian Vanadium Limited (AVL) – An Australian Vanadium Leader A leading Australian vanadium company with a world class asset located in Western Australia, a Tier-1 mining jurisdiction AVL has a major vanadium resource in a market dominated by Russia, China and South Africa Recent merger consolid
Slide 4: The Australian Vanadium Project
The Australian Vanadium Project 4
Slide 5: Australian Vanadium Project
Australian Vanadium Project Project Overview Vanadium, titanium, magnetite orebody located on tenements wholly owned by AVL, providing a significant, scalable project Simple open pit mining with standard magnetite concentrator process Potential for processing plant close to major port, providing opp
Slide 6: Post merger: Delivering synergies
Post merger: Delivering synergies Aim: To deliver the same volume of 6,270 MTV* per year, whilst optimising capital and operating costs, in addition to maximising project value Areas of project integration focus Other project activities Deliverables • Optimise orebody utilisation • Finalise project
Slide 7: Merger unlocks the orebody
Merger unlocks the orebody Opportunity to maximise economic return through access to high-grade areas of the orebody, which previously straddled the two projects Contiguous orebody • Prior to the merger, TMT owned tenements at the northern end of the orebody and a significant, small block at the sou
Slide 8: Optimised Feasibility Study focuses on realising economic benefits
Optimised Feasibility Study focuses on realising economic benefits Concept: Unrestrained use of orebody delivers opportunity to improve concentrate, delivering improved capital expenditure (CapEx) and operating expenditure (OpEx) for better project economics CapEx OpEx • Processing: Potential for sm
Slide 9: Progressing the project to production
Progressing the project to production Delivered Next steps BFS completed (pre-merger basis) Project Integration Offtake Mining Leases approved Combined Mineral Resource update (April target) Secure bankable vanadium offtake Completion of large-scale process including option for project finance plant
Slide 10: Vanadium Market
Vanadium Market 10
Slide 11: Strong vanadium market fundamentals
Strong vanadium market fundamentals 85% of vanadium Acceleration in Long-term average Vanadium classified Steep cost supply sourced from demand growth of price for commodity as critical mineral in curve driven by China, Russia and vanadium flow grade V2O5 of US, EU, Japan, China multiple production
Slide 12: Vanadium demand
Vanadium demand Global emission reduction is driving increased demand for vanadium across a range of end markets Demand drivers 2022 Demand 2030 Demand Growing focus on decarbonisation is seeing increased levels of Steel vanadium in steel manufacturing to deliver stronger, lighter steel 50% 93% Vana
Slide 13: Vanadium production and consumption forecast
Vanadium production and consumption forecast Supply deficit predicted to grow from 2024 onwards 01 Supply forecast includes growth from existing primary and secondary sources 02 Increased supply almost covers steel demand only Predicted growth in 03 VFB market demand requires 90% more vanadium suppl
Slide 14: Growing need for long duration energy storage (LDES) of to 12 hour+
Growing need for long duration energy storage (LDES) of 4 to 12 hour+ LDES provides greater flexibility of storage and aids the growth in delivery of variable renewable energy (VRE) %VRE in electricity generation1 Growing requirement for energy storage with long lifespan and limited degradation in R
Slide 15: What is a vanadium flow battery (VFB)?
What is a vanadium flow battery (VFB)? • A VFB is made up of two tanks filled with vanadium electrolyte fluid • The electrolyte acts as cathode and anode, tank size determines capacity • Vanadium electrolyte contains 145g of high-purity V2O5 per litre • Invented over 40 years ago and commercialised
Slide 16: Vanadium flow batteries – technical and economic merit
Vanadium flow batteries – technical and economic merit Improving VFB technology driving an increase from MWh to GWh scale projects Megawatt (MW) or Gigawatt (GW) describes the power output of the battery. MWh or GWh are the energy capacity, described in hours, or how long the power can be delivered
Slide 17: Global VFB roll-out led by China – increasing in scale to GWh
Global VFB roll-out led by China – increasing in scale to GWh Global VFB projects VFB proven technology At least 45 countries have 120 with over 200 operational VFBs operating or under 87 Announced batteries globally construction VFB projects 100 80 China accelerating roll out 600MWh average battery
Slide 18: VFB gigafactories being built in China
VFB gigafactories being built in China Manufacturing of VFBs and electrolyte at scale Gigafactory Total tonnes of Date Company manufacturing V2O5 required • China is building gigawatt capacity in manufacture of capacity per year per year VFBs and vanadium electrolyte January 2023 Shanghai Electric E
Slide 19: Future Optionality
Future Optionality 19
Slide 20: Vertical integration – pit to battery
Vertical integration – pit to battery WA Vanadium Vanadium Vanadium Battery Battery Mining Processing Electrolyte Assembly and Installation and Manufacture Manufacture Maintenance Corporate Presentation | March 2024 | ASX:AVL 20
Slide 21: Vanadium electrolyte manufacture
Vanadium electrolyte manufacture AVL has completed the construction of a vanadium electrolyte manufacturing facility in Perth, Western Australia • Co-funded with Australian Government grant funding • 33MWh per annum energy storage equivalent of vanadium electrolyte production • First production comp
Slide 22: VSUN Energy
VSUN Energy VSUN Energy was launched by AVL in 2016 to grow the VFB market in Australia Facilitating the developing Australian VFB market • VSUN Energy utilises VFB technology from a wide variety of global OEMs including Invinity Energy Systems, CellCube, Sumitomo and VFlow Tech. • VSUN Energy is ac
Slide 23: Investment Summary
Investment Summary 23
Slide 24: Investment thesis
Investment thesis Australian Growing vanadium Advancing funding Long−term Vanadium Project fundamentals strategies optionality Advanced project, 25+ VFB demand growth Project proposed to be Vanadium electrolyte year mine life with OFS to accelerating to support funded by debt, grants, manufacturing
Slide 25: Appendices
Appendices 25
Slide 26: Improved funding capability
Improved funding capability Potential project funding mix $49M Australian Commercial Equity market Government Offtake banks investors grant secured Government funding bodies Other grant (i.e. EFA, NAIF, funding CEFC etc.) RCF is a leading mining sector International focused private equity fund with
Slide 27: Sustainable and reusable
Sustainable and reusable VFB electrolyte liquid does not degrade, a significant advantage of the technology • Like in many battery types, a "cross-over" effect occurs within VFB cells over their lifetime • "Cross-over" effect involves material from one pole (anode) moving to the other pole (cathode)
Slide 28: VFB has lowest costs for long discharge times
VFB has lowest costs for long discharge times Limited scalability Energy $ $ $ $ $ $ $ $ $ $ $ $ • Power and energy in fixed ratio - Power $ $ longer duration costs become $ $ $ $ $ $ $ $ $ $ relatively high Li-ion • Duration increased by adding power and energy closed architecture Power components
Slide 29: Lithium – case study
Lithium – case study Lithium demand 2015 Lithium demand Relative mine production 1,200 1400 1200 5% 12% 1,000 29% 1000 800 5% 800 6% 600 600 8% 400 400 35% 200 200 0 0 Rechargeable Battery Glass & Ceramics 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 2016 2017 2018 2019 2020 2021
Slide 30: ESG in action
ESG in action Renewable energy strategy Community relationships Governance • Ability to produce ethical, low • Workforce participation and • Developing ESG reporting structure carbon vanadium product, business opportunities for Yugunga- aligned to the developing ISSB expecting to be 50% lower carbon
Slide 31: Board
Board Cliff Lawrenson Daniel Harris Miriam Stanborough Chair Non-Executive Non-Executive Director Director Experienced Chair and Over 40 years of Over 20 years of extensive executive career in global vanadium experience in the mineral resources, energy, experience, including processing industry infr
Slide 32: Executive Team
Executive Team International vanadium expertise − track record in project execution and operations Graham Arvidson Todd Richardson Louis Mostert Tom Plant Chief Executive Chief Operating Chief Legal and Chief Financial Officer Officer Commercial Officer Officer 18 years of experience in Over 20 year
Slide 33: Gabanintha North Mineral Resource Estimate (original TMT Resource)
Gabanintha North Mineral Resource Estimate (original TMT Resource) Source: TMT ASX Announcement dated 7 November 2022 ‘MTMP Global Mineral Resource Upgrade Delivers 26% Increase to Measured and Indicated Resource’ Corporate Presentation | March 2024 | ASX:AVL 33
Slide 34: Gabanintha North Ore Reserve (original TMT Reserve)
Gabanintha North Ore Reserve (original TMT Reserve) Source: TMT ASX Announcement dated 5 August 2022 ‘MTMP Mine Life Increased to 25 Years – Maiden Ilmenite Reserve and Production Profile’ Corporate Presentation | March 2024 | ASX:AVL 34
Slide 35: Geology & Mining: Gabanintha South Resource Table (original AVL Resource)
Geology & Mining: Gabanintha South Resource Table (original AVL Resource) Domains Category Mt V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI % Measured 11.3 1.14 43.8 13.0 9.2 7.5 3.7 Indicated 27.5 1.10 45.4 12.5 8.5 6.5 2.9 HG 10 Inferred 56.8 1.04 44.6 11.9 9.4 6.9 3.3 Subtotal 95.6 1.07 44.7 12.2 9.1 6.8
Slide 36: Geology & Mining: Gabanintha South Ore Reserve Table (original AVL Reserve)
Geology & Mining: Gabanintha South Ore Reserve Table1 (original AVL Reserve) The updated Ore Reserve for the Australian Vanadium Project 2022 Bankable Feasibility Study is detailed in the table below V2O5 Ore Reserve Mt V2O5% Fe2O3% TiO2% SiO2% LOI% production kt Ore Reserve Mt Proved 10.5 1.11 61.6
Slide 37: Yarrabubba Mineral Resource Estimate (original TMT Resource)
Yarrabubba Mineral Resource Estimate (original TMT Resource) Source: TMT ASX Announcement dated 7 November 2022 ‘MTMP Global Mineral Resource Upgrade Delivers 26% Increase to Measured and Indicated Resource’ Corporate Presentation | March 2024 | ASX:AVL 37
Slide 38: Yarrabubba Ore Reserve (original TMT Reserve)
Yarrabubba Ore Reserve (original TMT Reserve) Source: TMT ASX Announcement dated 5 August 2022 ‘MTMP Mine Life Increased to 25 Years – Maiden Ilmenite Reserve and Production Profile’ Corporate Presentation | March 2024 | ASX:AVL 38
Slide 39: www.avl.au
+61 (08) 9321 5594 info@avl.au www.avl.au Level 2, 50 Kings Park Road, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL
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