Slide 1: Steelpoortdrift Vanadium Project Corporate Presentation
Steelpoortdrift Vanadium Project Corporate Presentation March 2024 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 (March 2024). Neither this presenta
Slide 3: Emerging Vanadium Producer
Emerging Vanadium Producer One of the world’s largest DFS indicates strong financial Ore body easy to mine, Using conventional / proven and highest-grade vanadium outcomes with post-tax NPV7.5% of low strip ratio & low concentrate & Salt Roast Leach deposits US$1.2Bn (US$1.05Bn att. 86.5%)1, operati
Slide 4: Corporate Overview
Corporate Overview Corporate Structure (ASX: VR8) Top Shareholders Board of Directors – as at 25 March 2024 1 Matrix Resources (Zhejiang) Co Ltd 9.6% Jurie Wessels 2 Danterne Pty Ltd1 8.1% Executive Chairman 3 Raubex Pty Ltd 7.9% 560.3m John Ciganek A$0.045 4 Romfal Sifat Pty Ltd 5.0% Managing Direc
Slide 5: Why Vanadium?
Why Vanadium? Listed as a Critical Mineral in Australia, the US, UK and European Union, Vanadium demand is expected to grow significantly from its energy storage capabilities Vanadium Redox Flow Batteries (VRFBs) Steel & Alloys ➢ VRFBs forecast to represent up to 20% of total battery capacity1 ➢ Ove
Slide 6: Global Demand & Pricing Dynamics
Global Demand & Pricing Dynamics V2O5 Demand by Sector & Production Capacity Annual demand for VRFBs is expected to equate to between 50kt and 100kt of V2O5 450 by 2033. 400 Demand for VRFBs in 2022 was ~9kt of 350 V2O5, largely for new installations in China. Source: Project Blue 2023 300 V2O5 kt S
Slide 7: Global Demand & Pricing Dynamics
Global Demand & Pricing Dynamics 2022 Production Vanadium Pentoxide 98% min Europe US$/lb Total of ~205kt 30 Vanadium Pentoxide equivalent1 25 Source: FerroAlloyNet.com 20 V2O5 US$/Lb 15 Production Type 10 Co-production: 144kt Primary: 37kt 5 Secondary: 26kt 0 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-
Slide 8: Cost of Production (US$/lb V2O5)
International Cost Curve Cash cost of US$3.24/lb V2O5 places the Vanadium Pentoxide Production Costs, 2022 Project within the lowest quartile of the international cost curve for vanadium $10 Source: Project Blue 2023 pentoxide $9 Cost of Production (US$/lb V2O5) $8 $7 Well placed to remain cashflow
Slide 9: Global VRFB Installation Projects
Global VRFB Installation Projects 280+ VRFB Installations constructed or announced1 9GWhCapacity of VRFB Installations (>2.6GW) 1 78 VRFB Installations in Europe (excl. residential units) 1 Source: Vanitec Website – 2023 VRFB Project Map 1 Vanitec (2023) VRFB Global Database WWW.VR8.GLOBAL 8
Slide 10: DFS Delivers World Class Vanadium Project
DFS Delivers World Class Vanadium Project1 US$1.21bn US$1.05bn US$152m 42% (A$1.9bn) (A$1.62bn) (A$237m) NPV7.5% (post-tax) Attributable 86.49% NPV2 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 C
Slide 11: 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 12: 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 Steelpo
Slide 13: 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 14: 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 Location and Classification of Location and Classification of (designed to match Mining Right term) Mineral Resources Ore Resources ➢ Final pit design was based on Pit 17, which highlights p
Slide 15: Steelpoortdrift Concentrator Plant
Steelpoortdrift Concentrator Plant Concentrator flow sheet Dewatering based on proven Regrind Magnetic technology Separation Areas Dewatering Wet Magnetic Separation Two-stage Crushing Circuit Concentrate Product Ball @ 2.08-2.16% V2O5 Milling WWW.VR8.GLOBAL 14
Slide 16: Tweefontein SRL Plant
Tweefontein SRL Plant SRL flow sheet based on proven technology SO2 Scrubber Kiln SRL Plant comprises kiln roasting, Roasting desilification, ammonium metavanadate (AMV) Crystalliser precipitation, flash drying and V205 flake production Flash Drying Concentrate feed rate of 790ktpa with a grade of
Slide 17: Offtake, Strategic Investment and Project Financing
Offtake, Strategic Investment and Project Financing Strong progress toward securing binding offtake, strategic investment and project financing Offtake Agreements & Strategic Investment Hand specimen of ➢ Secured A$5.9M strategic equity at 40% premium with Matrix Resources, May 2023 vanadiferous tit
Slide 18: Growth Catalysts to Increase Shareholder Value
Growth Catalysts to Increase Shareholder Value Key Catalysts to FID ➢ Secure long-term offtake(s) ➢ Ropeway conveyor from Mine to SRL plant ➢ Secure project funding from combination of: Optimise ➢ Delineation drilling and re-optimisation based i. Debt ~65% PF debt Resource & on unconstrained Mineral
Slide 19: Investment Highlights
Investment Highlights Strong financials with attributable NPV of US$1.05bn, IRR of Securing offtake and strategic equity – offtake and strategic equity 42% and payback period of 27 months advisors appointed, which has yielded several interested parties Competitive capex (US$211m) and lowest quartile
Slide 20: Appendix
Appendix March 2024 VANADIUM RESOURCES
Slide 21: Board
Board 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-Akrokerri Gold Min
Slide 22: Management
Management JOHN CIGANEK JURIE WESSELS Managing Director & Executive Chairman Chief Executive Officer Tim Feather has over 25 years of experience in corporate finance. Following a law degree at the University of Nottingham, he qualified as a chartered accountant with TIM FEATHER Deloitte in the UK. I
Slide 23: Key Project Workstreams
Key Project Workstreams Environmental Authorisation & Environmental authorisations and water use licence applications for each site are progressing well with approval expected H1 CY2024 Water Use Licence Applications Social And Labour Plan & Social and Labour Plan amendments submitted to regulators
Slide 24: Project Timeline
Project Timeline Year CY24 CY25 CY26 Quarter H1 H2 H1 H2 H1 H2 Environmental & Water Permits Build Project Development Team FEED Offtake & Strategic Investment Debt Financing Equity Financing FID Engineering & Procurement Construction Production (incl. Ramp up) WWW.VR8.GLOBAL 23
Slide 25: Peer Comparison
Peer Comparison Largo Maracas1,2&3 TMT Project7,8 AVL Project9 Steelpoortdrift (VR8) 4&5 Bushveld Mokopane6 Richmond Vanadium10 In Production DFS Stage# BFS stage# DFS Stage PFS Stage PFS Stage (Results as at 30 Dec 2021) (Pre-Merger with AVL) (Pre-Merger with TMT) V2O5 Price US$7.80/lb US$9.50/lb U
Slide 26: Peer Comparison – Mineral Resources
Peer Comparison – Mineral Resources Resource Resource Total Concentrate Resource Company Code Project Stage Tonnes Grade Resource Grade Information Source Category (Millions) (V2O5 %) (Mt) (V2O5 %) Measured 46 0.83 Largo LGO.TSX Maracas Production Indicated 18 0.70 79 2.46 Largo Maracas NI43-101 Tec
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