Slide 1: 21st Century Vanadium: Raw Material Security, spiking prices and impact on ESS
21st Century Vanadium: Raw Material Security, spiking prices and impact on ESS Benchmark Minerals World Tour September 2018
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. COMMENT It is common practice for a com
Slide 3: AVL Gabanintha on Pathway to Vanadium Production
AVL Gabanintha on Pathway to Vanadium Production Company ▪ Listed on Australian Stock Exchange since 2007 (ASX:AVL) ▪ AVL has strongest technical team of all prospective new vanadium prospects globally Vanadium Markets ▪ Vanadium price on long term uptrend as traditional steel markets actively seek
Slide 4: Corporate Snapshot
Corporate Snapshot Key Statistics (as at 12-9-18) AVL Share Price History Ordinary shares on issue 1,621m $0.080 100,000,000 Listed Options (ex at 2c exp Dec 2018) 378.8m 90,000,000 AVLO $0.070 Share price AUD $0.044 80,000,000 $0.060 Market capitalisation (undiluted) A$70m (Cash ~A$5m) 70,000,000 S
Slide 5: Vanadium Markets
Vanadium Markets Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 5
Slide 6: Vanadium Markets - Steel
Vanadium Markets - Steel Despite reduced rate of steel production, demand for vanadium continues to grow. Steel remains the price driver for vanadium. ▪ Steel is the primary market (92% of vanadium consumption) ▪ Key metric is Chinese rebar consumption ▪ Vanadium used to micro-alloy finished steel p
Slide 7: Markets - Steel
Vanadium Markets - Steel Global inventory levels are decreasing as evidenced by rising prices over the past three years. Metal Bulletin V2O5 Monthly Midpoint Average Price inflated to Sept 2018 US$ $40.00 ▪ Ferrovanadium prices in China have risen to $35.00 about $80 per kilogram and to about $81 pe
Slide 8: Vanadium Markets - Overview
Vanadium Markets - Overview In 2017 (based on three quarter actual results annualized), vanadium consumption exceeded production by more than 9,000 MTV, or over 10% of the market. Global Vanadium Production vs Consumption 95000 90000 85000 Shortage 9,309 MTV MTV 80000 75000 70000 65000 2011 2012 201
Slide 9: Vanadium Consumption in Chinese Rebar / Consumption Forecast
Vanadium Consumption in Chinese Rebar Vanadium Consumption Forecast Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 9
Slide 10: Cumulative Market Projection of Vanadium Consumption for Energy Storage
Cumulative Market Projection of Vanadium Consumption for Energy Storage A New Player in Demand! Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 10
Slide 11: Vanadium Markets – Energy Storage
Vanadium Markets – Energy Storage Unique characteristics of Vanadium Redox Flow Batteries (VRFBs) ▪ Flow battery technology is well established and at commercial deployment status ▪ VRFBs provide a way to store and re-supply renewable energy. Their very high capacity is ideal for large-scale energy
Slide 12: Vanadium in electrolyte – Market implications
Vanadium in electrolyte – Market implications 145g/l V₂O₅ in H₂SO₄ at 1.6 molar Amount of V₂O₅ used in 1MWh 9.89t storage per year 11GWh Projected global annual energy Estimated VRFB installs @ 10% 1GWh V₂O₅ per year needed to supply VRFB demand 10kt Current annual global production of V₂O₅ equivale
Slide 13: Energy Storage Market Beckons in Australia
Energy Storage Market Beckons in Australia Can VRFBs be the ultimate grid energy storage solution for Australia? ▪ Rising power costs: VRFBs can reduce power bills by peak/off-peak shifting and demand management ▪ Australia has world’s most extended networks - many fringe-of-grid and off-grid opport
Slide 14: Vanadium Redox Flow Battery Manufacturers
Vanadium Redox Flow Battery Manufacturers Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 14
Slide 15: New Insights in State of Commercial VRFBs
New Insights in State of Commercial VRFBs Market signals appearing, driving revolution in VRFB suppliers • Vanadium shortage and higher prices driving innovation in VRFBs • Dramatic increase in number of VRFB manufacturers across all continents • Higher V pricing resulting in “hardware” cost innovat
Slide 16: Value Addition in V-electrolyte
Value Addition in V-electrolyte Vanadium electrolyte production diversifies target market • Vanadium electrolyte is VRFB “fuel” • A mild acid solution of V2O5 with all oxidation states balanced and available for electron transfer • Requires high purity (99.5%+) V2O5 • High purity circuit planned for
Slide 17: Vanadium Supply Chain
Vanadium Supply Chain Current global producers Australian explorers Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 17
Slide 18: Project Highlights Gabanintha
Project Highlights Gabanintha Australian Vanadium Limited | ASX: AVL 18 australianvanadium.com.au 18
Slide 19: AVL is a vanadium focused company
AVL is a vanadium focused company ▪ Vanadium focused company listed on ASX since 2007 ▪ Undertaking pre-feasibility study on magmatic titaniferous vanadium iron project at Gabanintha in Western Australia ▪ Significant project with high-grade Measured, Indicated and Inferred vanadium resources hosted
Slide 20: Globally Significant Project – PFS Nearing Completion
Globally Significant Project – PFS Nearing Completion Gabanintha Vanadium Project in Western Australia Australian Vanadium Limited | ASX: AVL australianvanadium.com.au 20
Slide 21: Vincent Algar, Managing Director
Vincent Algar, Managing Director +61 (8) 9321 5594 info@australianvanadium.com.au australianvanadium.com.au Level 1, 85 Havelock Street, West Perth Western Australia 6005 Australian Vanadium Limited | ASX: AVL
Slide 22: Vanadium Resource
Vanadium Resource Resource Table Material JORC Resource Class Million Tonnes V2O5 % Fe% TiO2 % SiO2 % Al2O3 % LOI% High grade Measured 10.1 1.11 42.7 12.6 10.3 8.0 4.0 Indicated 4.9 1.09 43.3 12.1 10.5 7.8 3.7 Inferred 78.6 0.98 42.4 11.2 11.4 7.6 3.4 Subtotal High Grade 93.6 1.00 42.5 11.4 11.3 7.6