Vanadium Resources Ltd. · ASX:VR8
Vanadium Resources — Investor Presentation (November 2022)
30 slides from Vanadium Resources's investor presentation, Nov 16, 2022
Slide 1: Steelpoortdrift Vanadium Project Investor Presentation
Steelpoortdrift Vanadium Project Investor Presentation November 2022 ASX:VR8 WWW.VR8.GLOBAL
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 (November 2022). Neither this prese
Slide 3: Contents
Contents Emerging Vanadium Producer 4 Corporate Overview 5 Why Vanadium 8 Global Demand Forecast and Price Dynamics 9 Location – in the Bushveld Complex 12 Global Primary Resources 13 DFS Delivers World Class Vanadium Project 14 ESG Initiatives 23 Peer Comparison 24 Offtake, Stra
Slide 4: Emerging Vanadium Producer
Emerging Vanadium Producer One of the world’s largest and DFS indicates strong financial Ore body easy to mine, Using conventional / proven highest-grade vanadium outcomes with post-tax NPV7.5% of low strip ratio & low concentrate & Salt Roast Leach deposits A$1.9Bn (A$1.4Bn att.), 42% IRR & operati
Slide 5: Corporate Overview
Corporate Overview 0,20 100 Corporate Structure (ASX: VR8) – as at 14 November 2022 0,18 Daily Volume 90 0,16 DFS Results 80 V2O5 Price SRL Site 0,14 70 474.8m A$0.066 A$31.3m $12.40/lb Acquired Closing Price (A$) 0,12 60 Million Shares Shares on issue Share Price Market Cap (@ Pre-Feasibility (undi
Slide 6: Board & Management
Board & Management Jurie Wessels has 26 years’ experience in the exploration industry and co-founded a number of exploration and mining companies, including Bauba Resources Ltd (BAU.J), which owns three operating chrome mines, GoldStone Resources Ltd (GRL.L), which company is mining the Homase-Akrok
Slide 7: Milestones Delivered
Milestones Delivered In the last 12 months VR8 has delivered important de-risking milestones for Steelpoortdrift DFS completed on-time and on budget – Revised Mineral Resource and Ore Reserve providing validation for the development of the estimate with enhanced block model and 183- Steelpoortdrift
Slide 8: Why Vanadium
Why Vanadium Listed as a Critical Mineral in Australia and the US, Vanadium demand is expected to grow significantly from its energy storage capabilities Vanadium Redox Flow Batteries (VRFB’s) Steel & Alloys VRFBs forecast to represent between 15 – 25% of total battery capacity Over 90% of the c
Slide 9: Global Demand Forecast
Global Demand Forecast Steel: 90% VRFB’s: 3-5% Forecasters Future demand Aerospace: 3% expect over VRFBs forecast to represent between 1,200GW of battery capacity to be Current 15-25 % added between today and demand of battery capacity 2050, with approximately 600GW before 2025.1 by 2025. VR8 Vanadi
Slide 10: 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 50000 1 200 $20 45000 $15 800 40000 $10 35000 Metric Ions Vanadium 400 $5 V2O5 (US$/lb) 30000 MtV 25000 0 $0 20000 ($5) (400) 15000
Slide 11: V2O5 Price Dynamics
V2O5 Price Dynamics Projection of potential MtV demand change 2020-2025 Vanadium Pentoxide 98% min Europe US$/lb 70 000 35 60 000 30 Metric Ions Vanadium 50 000 25 V2O5 (US$/lb) 40 000 20 30 000 15 20 000 10 10 000 5 0 0 2021e 2022e 2023e 2024e 2025e Nov-17 Nov-18 Nov-19 Nov-20 Nov-21 Nov-22 Change
Slide 12: Location – in the Bushveld Complex
Location – 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 in close proximity to existing infrastructure. Other Mines in the Bushveld Complex Vametco – Vanadium Mine Rhovan – Vanadium Min
Slide 13: Global Primary Resources
Global Primary Resources 3,0% 2100 Tonnes In Situ Grade Concentrate Grade 1800 2,5% Resource Tonnage (Millions) 1500 2,0% 1200 %V2O5 1,5% 900 1,0% 600 0,5% 300 0,0% 0 Largo Glencore Bushveld Bushveld Bushveld Vanadium Australian Richmond Technology Maracás Rhovan Vametco Brits Mokopane Resources Van
Slide 14: DFS Delivers World Class Vanadium Project
DFS Delivers World Class Vanadium Project A$1.9bn A$1.4bn A$237m 42% (US$1.21bn) (US$896m) (US$152m) NPV7.5% (post-tax) Attributable NPV Yearly Free Cashflows IRR (post-tax) 27 months US$211m US$3.24 US$9.50 (A$329m) (Deloitte forward mid-range) Incl. Contingency Payback Start up Capex C3 Opex V2O5/
Slide 15: DFS Key Attributes & Opportunities
DFS Key Attributes & Opportunities Cash Flows attributable only to V2O5 flake sales Opportunity to incorporate titanium dioxide concentrate production and other potential ore credits Additional life of up to 67 years available in the designed open pits within a low environmental and social imp
Slide 16: DFS Study Team and Contributors
DFS Study Team and Contributors Sound Mining – geological modelling, Resource estimate, pit optimisation, Ore Reserve estimate and economic assessment SPH Kundalila – mining equipment and costing Nurizon Consulting – near surface geotechnical studies and TSF design Red Kite – environmental a
Slide 17: Resources & Ore Reserves
Resources & Ore Reserves Global Mineral Resource of 680Mt at 0.70% V2O5 Total Ore Reserve of 77Mt at 0.72% V2O5 Mineralisation outcrops at surface and dips shallowly (~10º) – less waste to mine, low strip ratios (0.88x waste : ore) and cheaper mining cost Orebody able to achieve a high-grade
Slide 18: Location of Mineral Resources & Ore Reserves
Location of Mineral Resources & Ore Reserves The final pit design and Ore Reserves based on LOM of 25 years (designed to match Mining Right term) Final pit design was based on Pit 17, which highlights potential for a larger ultimate pit design Ore Reserves represents 12% of Mineral Resources a
Slide 19: Open Pit Design and Schedule
Open Pit Design and Schedule Detailed pit designs have been developed across three open pits and scheduled over the 25-year life of the project The mining schedule was able to achieve high ROM grades of greater than 0.80% V2O5 for the first 8 years, with a LOM average grade of 0.71% V2O5 19 WWW.
Slide 20: Mine, Concentrator & SRL
Mine, Concentrator & SRL Mine Site – View of the North of Mining Area The mine site, concentrator and SRL sites are located within a substantial mining and smelting district, with well established infrastructure (including water, power, sealed roads, rail, etc) VR8 Offices and Warehouses in Steelpor
Slide 21: Concentrator Plant
Concentrator Plant Concentrator flow sheet based on proven technology Two-stage Crushing Circuit Wet Magnetic Separation Dewatering Ball Milling Regrind Magnetic Concentrate Product @ Separation Areas 2.08-2.16% V2O5 Dewatering 21 WWW.VR8.GLOBAL
Slide 22: Concentrator Plant
Concentrator Plant SRL flow sheet based on proven technology SO2 Scrubber SRL Plant comprises kiln roasting, desilification, Kiln Roasting ammonium metavanadate (“AMV”) precipitation, flash Crystalliser drying and V205 flake production Concentrate feed rate of 790ktpa Flash Drying with a grade of >2
Slide 23: ESG Initiatives
ESG Initiatives Renewable electricity Dry deposition of Co-products Community supply tailings Inclusion of PV solar plant Dewatering of tailings Studies underway to unlock Initiatives to maximize reduces carbon footprint and material means reduced risk value from other metals community involvement a
Slide 24: Peer Comparison
Peer Comparison Largo Maracas1 Steelpoortdrift (VR8) 2 Bushveld Mokopane3 TMT Project4 AVL Project5 Richmond Vanadium6 In Production DFS Stage PFS Stage DFS Stage BFS stage PFS Stage (Results as at 30 Dec 2021) V2O5 Price US$7.89/lb US$9.50/lb US$7.50/lb US$10.50/lb US$10.50/lb US$9.60/lb Market Cap
Slide 25: Offtake, Strategic Investment and Project Financing
Offtake, Strategic Investment and Project Financing Commenced process toward securing binding offtake, strategic investment and project financing Offtake Agreement & Strategic Investment A process is underway with a range of international traders and downstream users of vanadium In parallel, a p
Slide 26: Preliminary Project Timeline
Preliminary Project Timeline Year CY22 CY23 CY24 CY25 Quarter Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DFS Environmental & Water Permits Build Project Development & Operations Team FEED Offtake & Strategic Investment Debt Financing FID Engineering & Procurement Construction Production (incl. Ramp up)
Slide 27: Investment Highlights
Investment Highlights Strong financials with attributable NPV of A$1.4bn, IRR of 42% and payback period of 27 months Unlocking Steelpoortdrift as one of the Competitive Capex (US$211m) and lowest quartile Opex (C3 cost world’s largest and highest-grade US$3.24/lb) Long life project with excellent pr
Slide 28: Appendix
Appendix November 2022 ASX:VR8 WWW.VR8.GLOBAL
Slide 29: Peer Comparison Table
Peer Comparison Table Company Code Project Stage Resource Category Resource Tonnes Resource Grade Concentrate Grade Information Source Measured, 43-101 Technical Report dated 10/10//2021 Indicated Largo LGO.TSX Maracas Production 79.2 0.99 2.45 largoresources.com/operations/maracas-menchen-mine & In
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