Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Paydirt Battery Minerals Conference 2023
23 slides from Australian Vanadium's conference presentation, Mar 22, 2023
Slide 1: Paydirt Battery Minerals Conference, March 2023
For personal use only MARCH 2023 Paydirt Battery Minerals Conference
Slide 2: ASX Chapter 5 Compliance and Cautionary and Forward-Looking Statements
A S X : AV L ASX CHAPTER 5 COMPLIANCE AND CAUTIONARY AND FORWARD-LOOKING STATEMENTS For personal use only 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 ac
Slide 3: Why Vanadium? Industrial, critical, and (battery metal)2
A S X : AV L A U S T R A L I A N VA N A D I U M L I M I T E D Why Vanadium? Industrial, critical, and (battery metal)2 For personal use only Energy Storage: Growth Market Steel Alloy: Growth Market Battery Metal (Horizon 1 VRFBs) Industrial Metal • Vanadium redox flow batteries (VRFBs) are a • Incre
Slide 4: Vanadium – consensus on demand growth
A S X : AV L A U S T R A L I A N VA N A D I U M L I M I T E D Vanadium – consensus on demand growth For personal use only Vanadium demand to double by ‘Assuming even modest growth in vanadium 2032, with more than 90% of this consumption in energy storage applications, the growth from Vanadium Redox
Slide 5: Vanadium Markets: Industrial metal and battery metal demand growth
A S X : AV L VA N A D I U M M A R K E T S Industrial metal and battery metal demand growth For personal use only 350,000 1See ASX Announcement "Bankable Feasibility Study for Australian Vanadium Project" dated 6th April 2022. All material assumptions underpinning the production 300,000 target contin
Slide 6: VRFB: Technical merit
A S X : AV L VRFB: Technical merit For personal use only Lifespan over Non-flammable Vanadium electrolyte Easy to scale 20 years with little to making it one of the Multiple daily cycles, can be reused Long duration power and energy no degradation safest and most with 100% depth of indefinitely or s
Slide 7: VRFB: Financial merit
A S X : AV L VRFB: Financial merit Example cost comparison for VRFB vs Lithium-ion 3MW / 24MWh (8 hour) system over 20-year lifespan For personal use only CAPEX OPEX DC System (cells, Vanadium Containerisation Initial Overbuild TOTAL Electricity O&M Replacement Liability End of life TOTAL module, ra
Slide 8: Vanadium in lithium-ion (Energy Storage, Growth Horizon 2)
A S X : AV L A U S T R A L I A N VA N A D I U M L I M I T E D Vanadium in lithium-ion (Energy Storage, Growth Horizon 2) For personal use only • Vanadium is an ideal candidate for use in lithium-ion batteries due to unique properties and scalability • Vanadium known for decades to improve lithium-io
Slide 9: Why AVL?
A S X : AV L Track Record • Track record in raising capital and securing significant Asset & Scalability Why AVL? government grants to fund and build value in the company. For personal use only • 25+ years mine life, competitive C1 OPEX • Hub Processing Configuration: built for scalability • Scalabl
Slide 10: A Team That Can Deliver
A T E A M T H AT C A N D E L I V E R International vanadium expertise Track record in project execution and operations For personal use only Board Experienced Mining, Over 40 years of Over 20 years 40 years of Chair with exploration, vanadium of experience in experience in extensive project experien
Slide 11: Australian Vanadium Project Location
Mining & CMB ✓ Proximity to Great Northern Highway (31km) ✓ Proximity to water For personal use only ✓ BOO power generation station using LNG and renewables ✓ Close to airport (Meekatharra 40km) ✓ Historical and current mining region Processing Plant ✓ Proximity to gas & water (25km) ✓ Proximity to
Slide 12: BFS – Robust Project Metrics
Australian Vanadium Project BFS – Robust Project Metrics For personal use only STRONG OPEX, RESOURCE FINANCIAL CAPEX, OUTCOMES PRODUCTS Pre-Tax NPV7.5 IRR C1 OPEX Total Resource A$833M 20.6% US$4.43/lb V2O5 239Mt @ 0.73% V2O5 High-grade 95.6Mt @ 1.07 V₂O₅ EBITDA Annual Average PRE-PRODUCTION A$175M
Slide 13: Supply curve – AVL Project well positioned
Supply curve – AVL Project well positioned For personal use only “The cash cost of the last incremental units required to satiate demand in 2022 is above US$12.00/lb V2O5” – TTP Squared 2022 V2O5 Cash Cost Curve $18.00 Steel Slag $16.00 Primary Ore Secondary $14.00 U Ores $12.00 Cash Cost US$/lb. V2
Slide 14: Historical pricing – AVL Project well positioned
Historical pricing – AVL Project well positioned For personal use only “Long term inflated V2O5 historical prices are in the range of US$9.00-$12.00/lb V2O5” – TTP Squared V2O5 Real Price Distribution Chart, Jan. 2004-Nov. 2022, Inflated to Aug 2022 US$ 30 25 US$/Pound V2O5 Mean $13.18 Number of Occ
Slide 15: For personal use only
uijadig se5 jesmen Aunqung - Jaldweg AVL PROCESSING PLANT STAGE 1 400km, AVL MINING PROJECT Ne 4 AND CONCENTRATOR Australian "LIMITED 239Mt @ 0.73% V0, ASX: 6/4/2022 ‘i a \ T ! The Vanadium ater Pipeline I Major road + Major citway
Slide 16: Project Delivery Path
A S X : AV L A U S T R A L I A N VA N A D I U M P R O J E C T Project Delivery Path For personal use only 01 02 03 04 05 Final Financial BFS EPC/EPCM Investment Close and Production Completed Partnerships Decision Construction Bankable Securing debt Selection of Execute FEED, Australian Feasibility
Slide 17: Funding model
A S X : AV L Funding model For personal use only $49M Modern Manufacturing Initiative grant Equity Canaccord Debt 1717
Slide 18: Strong ESG Focus
ESG IN ACTION Strong ESG Focus For personal use only Renewable energy strategy • Ability to produce ethical, low carbon vanadium product, expecting to be 50% lower carbon intensity per unit of vanadium than existing co-production vanadium producers1 • Use of solar and/or wind generation • Use of VRF
Slide 19: Vertical Integration: Pit to Battery
A S X : AV L Vertical For personal use only Integration Pit to Battery Vertical integration optionality can give AVL the ability to produce the world’s highest quality vanadium products tailored to our customers’ needs from steel (low purity requirements) through to speciality chemicals (ultra high
Slide 20: VSUN Energy: Current Projects Overview
VSUN Energy: Current Projects Overview For personal use only VSUN Energy is a 100% owned subsidiary of ASX-listed Australian Vanadium Limited (ASX: AVL) Current Projects • Water Corporation – successful completion of trial of a 5kW/30kWh vanadium redox flow battery (VRFB) to power a chlorinator. • I
Slide 21: Vanadium Electrolyte Project Update
A S X : AV L Vanadium For personal use only Electrolyte Project Update • 33MWh per annum electrolyte plant under development U.S. Vanadium LLC electrolyte plant in Arkansas, US • AVL to be an early mover in electrolyte manufacture in Australia • Location secured in Perth, Western Australia • Detaile
Slide 22: In Summary: Why Vanadium, and why AVL?
A S X : AV L In Summary Why Vanadium, and why AVL? For personal use only TRACK RECORD ASSET & SCALABILITY INDUSTRIAL METAL BATTERY METAL STEEL ALLOYS VRFB DECARBONISATION VERTICAL GREEN INTEGRATION LIGHTS WHY WHY VANADIUM? AVL? ETHICALLY QUALITY OF DECARBONISATION SOURCED THE TEAM + ETHICAL SUPPLY C
Slide 23: For personal use only
For personal use only +61 (08) 9321 5594 info@australianvanadium.com.au Level 2, 50 Kings Park Road, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL australianvanadium.com.au
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