Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Diggers & Dealers Mining Forum 2023
26 slides from Australian Vanadium's conference presentation, Aug 9, 2023
Slide 1: Diggers & Dealers Mining Forum August 2023
For personal use only ASX:AVL Diggers & Dealers Mining Forum August 2023
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
Australian Vanadium Limited The Australian Vanadium Project is one of the most advanced undeveloped vanadium projects globally For personal use only Project located in Western Australia, with access to key infrastructure including gas, rail and port BFS completed highlighting strong project metrics
Slide 4: Vanadium Demand
Vanadium Demand x Vanadium market demand is currently dominated by use in the steel industry, although its exposure to the For personal use only energy transition through vanadium flow batteries (VFBs) could provide a sizeable diversification from steel. Vanadium demand from batteries (% of total ma
Slide 5: Vanadium Supply
Vanadium Supply For personal use only • Global vanadium market of 118,000 MTV* in 2022 Global Vanadium Supply • AVL’s planned production represents ~5% of current global supply • Over 75% of global vanadium supply currently sourced from China, Russia and South Africa • Onshoring thematic is increasi
Slide 6: Australian Vanadium Project - a Premier Location
Australian Vanadium Project - a Premier Location For personal use only Project Overview • Access to scalable power, water and infrastructure • Simple open pit mining • Concentrate transported to coastal location for processing Strategic separation of Mine and Plant • Location near coast lowers proje
Slide 7: Processing Hub Optionality
Processing Hub Optionality For personal use only Western Australia’s Mid West Region is an emerging vanadium jurisdiction AVL’s processing plant has been strategically situated to enable optionality for future processing of regional VTM concentrates AVL-Neometals a leading example of critical metals
Slide 8: Australian Vanadium Project Economics
Australian Vanadium Project Economics For personal use only C1 OPEX Pre-production Capex EBITDA Annual Average US$435M US$4.43/lb A$175M V2 O 5 Annual V Production 25+ years 15 month Construction 11,200t Mine Life Timeframe V2 O 5 Note: Information within this slide as detailed in ASX Announcement "
Slide 9: Robust Mine Plan, Low Capital Intensity & Unit Costs
Robust Mine Plan, Low Capital Intensity & Unit Costs1 Capital Cost For personal use only • US$435M capex to first production (ex-contingency) • US$92M in post production capex over first 4 years of operation • Proximity to key infrastructure and separation of processing plant from mine reduce total
Slide 10: Australian Vanadium Project: Vanadium Electrolyte
Australian Vanadium Project: Vanadium Electrolyte For personal use only Project Update • 33MWh per annum electrolyte plant under development (Federal Grant) • AVL to be an early mover in electrolyte manufacture in Above: Design for AVL vanadium electrolyte plant Australia Left: US Vanadium LLC vanad
Slide 11: VSUN Energy: Current Projects Overview
VSUN Energy: Current Projects Overview VSUN Energy is a 100% owned subsidiary AVL For personal use only "Vanadium redox flow batteries are Current Projects specifically designed to deliver energy over a long period of time, which is crucial for achieving the • Horizon Power 78kW/220kWh high levels o
Slide 12: Progressing the AVL Project to production
Progressing the AVL Project to production For personal use only Delivered Catalysts Project Development Offtake BFS completed • Completion of ECI & appointment of • Secure bankable vanadium offtake including Mining lease approval contractor for mine infrastructure option for project finance Completi
Slide 13: Investment Thesis
Investment Thesis Aim be the World’s 4th Primary Vanadium Producer with a lowest quartile operating cost, long life, scalable asset For personal use only Australian Growing vanadium Advancing funding Long−term Vanadium Project fundamentals strategies optionality • Advanced project, low • Steel deman
Slide 14: Why AVL
For personal use only Why AVL +61 (08) 9321 5594 info@australianvanadium.com.au australianvanadium.com.au Level 2, 50 Kings Park Road, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL
Slide 15: Appendices
For personal use only Appendices 15
Slide 16: Funding model
Funding model For personal use only $49M Australian Equity market Grant funding Government investment grant secured Equity Debt Government International International Funding Commercial Government Export Bodies Banks Sovereign Finance (eg EFA, NAIF Funding Companies and CEFC) 1616
Slide 17: Vanadium Market: Steel growth underpins pricing dynamics
Vanadium Market: Steel growth underpins pricing dynamics Potential upside from energy storage thematic Vanadium demand For personal use only 350,000 • Vanadium is used to strengthen steel and has had a historic correlation to global steel demand 300,000 • Vanadium delivers longer life, stronger and
Slide 18: Vanadium Flow Batteries (VFB)
Vanadium Flow Batteries (VFB) Vanadium Flow Battery Forecasts For personal use only 70 80 Annual installations (GWh) • Vanadium flow batteries (VFBs) are a mature and Implied V205 consumption (kt V205) proven technology ideally positioned to meet demand 60 for large, long duration stationary storage
Slide 19: Vanadium Supply
Vanadium Supply 2022 V2O5 Cash Cost Curve For personal use only $18.00 $16.00 Steel Slag Primary Ore $14.00 Secondary • Global vanadium market of 118,000 MTV* U Ores in 2022 $12.00 Stone Coal • Steep cost curve driven by multiple supply Cash Cost US$/lb. V2O5 $10.00 production routes $8.00 • Long-te
Slide 20: Vanadium Markets: Critical Metal Demand
Vanadium Markets: Critical Metal Demand For personal use only • US, EU, Canada, Australia, Japan, Brazil, South Africa, and the UK have all classified vanadium as a critical metal essential to their economies (Source: Vanitec) • Vanadium is used extensively in aerospace, defence and specialty chemic
Slide 21: VFB Technical Merit
VFB Technical Merit For personal use only Long Easy to scale power Lifespan over duration, competitive and energy separately 25 years with little to techno-economics >4h no degradation in performance over time Non-flammable Multiple daily cycles, Vanadium electrolyte can making it one of the with 10
Slide 22: Low Operating Costs
Low Operating Costs Operating Costs1 (US$/lb V205) Life of Mine For personal use only Mining costs 1.42 CMB processing costs 0.93 Competitive C1 cash cost of US$4.43/lb Processing plant 2.02 Haulage & other 2.46 Total C1 costs (before credits) 6.83 Coproduct credit of $2.40/lb By products -2.40 Tota
Slide 23: Board
Board For personal use only Cliff Lawrenson Daniel Harris Miriam Stanborough Non-Executive Non-Executive Non-Executive Director 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, experie
Slide 24: Executive Team
Executive Team International vanadium expertise − track record in project execution and operations For personal use only Graham Arvidson Todd Richardson Louis Mostert Chief Executive Chief Operating Chief Legal and Officer Officer Commercial Officer 18 years of experience in the Over 20 years of exp
Slide 25: Geology & Mining: Resource Table
Geology & Mining: Resource Table Domains Category Mt V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI % For personal use only 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 3.2 Measured - - -
Slide 26: Geology & Mining: Ore Reserve Table
Geology & Mining: Ore Reserve Table1 The updated Ore Reserve for the Australian Vanadium Project 2022 Bankable Feasibility Study is detailed in the table below For personal use only V2O5 Ore Reserve Mt V2O5% Fe2O3% TiO2% SiO2% LOI% production kt Ore Reserve Mt Proved 10.5 1.11 61.6 12.8 9.5 3.7 70.9
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