Vanadium Miners News For The Month Of October 2023

Welcome to the Vanadium miners news.

October saw vanadium prices hit a new low due to depressed demand from buyers. Low vanadium prices are now putting significant pressure on western vanadium producers’ profit margins.

Vanadium uses

Vanadium is traditionally used to harden steel. Chinese rebar standards are requiring more vanadium. Also Vanadium Flow Batteries [VRFBs] are becoming increasingly popular especially for commercial energy storage, most notably in China. Vanadium Pentoxide [V2O5] is used in VRFBs and Ferrovanadium [FeV] is used in the steel industry.

Vanadium spot price history

Europe & China Vanadium Pentoxide [V2O5] Flake 98% one-year price chart – Europe = USD 6.20/lb, China = USD 5.05/lb.

Europe and China Ferrovanadium [FeV] 80% one-year price chart – Europe = USD 26.25/kg, China = USD 27.00/kg.

Vanadium demand versus supply

In 2017 Robert Friedland stated: “We think there’s a revolution coming in vanadium redox flow batteries….”

An April 2021, Wood Mackenzie report stated (emphasis added):

Global energy storage deployment surged a remarkable 62% in 2020, with 5 GW/9 GWh of new capacity added. This brought the total energy storage market to more than 27 GWh. Furthermore, we expect the global (energy storage) market to grow 27-fold by 2030.

ResearchAndMarkets forecasts VRFBs to grow from US$237.5M in 2022 to US$1,300M by 2030 (source).

Global VRFB forecast growth by region 2022-2031.

CRU forecasts vanadium demand to double by 2032 mostly due to VRFB’s (source) (As of January 2023).

Large-scale global deployments of VRFB’s are becoming more common (source).

Vanadium market news

On September 22, Energy Storage News reported:

…Elemental’s flow battery comes online in Alberta, Canada… Elemental Energy has commenced operation of a large-scale vanadium flow battery system.

On September 25, Energy Storage News reported:

Energy Dome, Invinity, Form, Redflow projects among DOE’s US$325 million LDES winners. The grant funding will go to a total of 15 projects across the US which are deploying technologies that provide 10 or more hours of energy storage discharge at full power, the DOE’s definition of LDES.

On October 5, Energy Storage News reported:

Innovation arm of US Department of Defense trials flow batteries, mobile BESS for resiliency applications…Called Extended Duration for Storage Installations (EDSI), the ability of a vanadium redox flow battery (VRFB) system from Austrian company CellCube, a zinc-bromine flow battery from Australian company Redflow and mobile power solutions from US company DD Dannar will be installed in field trials through the project… In addition to providing the essential backup power that will help military installations and operations to ride through causes of disruptions to power supply such as extreme weather events, the technologies could enable the military services to increase their consumption of renewable energy and better manage their energy use overall…Project sizes and capacities were not provided in a release, but the Department of Defense said both the CellCube and Redflow systems will be at “megawatt-scale”. Redflow’s zinc-bromine flow battery and control system will be installed at a US Air Force site…CellCube’s VRFB technology and accompanying battery management system [BMS] will be connected to energy systems at base facilities of the US Navy and Marine Corps.

On October 13 Vanadiumprice.com reported:

Vanadium Weekly Review During 7 – 13 October, 2023… Bidding from vanadium alloy steels continued after the holiday, but medium and large steel mills had exerted great efforts to lower prices for vanadium-nitrogen alloys and ferrovanadium which made vanadium alloy steel tender under pressure…The current imbalance between supply and demand in the vanadium market remains unchanged, and the overall transaction volume continues to be low.

Vanadium miner news

Vanadium producers

Glencore plc [LSX:GLEN] [HK:805] (OTCPK:GLCNF)

Glencore is a large vanadium producer, but vanadium production represents only a small portion of their revenue.

No vanadium related news for the month.

AMG Critical Materials N.V. [NA:AMG] [GR:ADG] (OTCPK:AMVMF)

AMG Vanadium is a leading provider of products and services for the metals, manufacturing, refinery and petrochemical industries. AMG Vanadium produces ferrovanadium and related ferroalloys from spent refinery catalysts using a proprietary pyrometallurgical process. In January 2023, AMG announced plans to build a Vanadium Electrolyte plant in Germany with production expected to start at the end of 2023.

No news for the month.

Bushveld Minerals Limited [LN-AIM:BMN] (OTC:BSHVF)

Bushveld is a diversified AIM-listed resources company with a portfolio of vanadium, tin and coal assets in Southern Africa and Madagascar.

On September 26, Bushveld Minerals announced: “Unaudited Interim results for the six months ended 30 June 2023.” Highlights include:

H1 2023 Financial Highlights

• “Revenue of US$78.4 million (H1 2022: US$76.2 million).
• Sales of 2,096 mtV (H1 2022: 1,644 mtV), supported by higher production of 1,784mtV (H1 2022: 1,641 mtV).
• Average realized price of US$37.4/kgV (H1 2022: US$46.4/kgV).
• Cost per unit sold including sustaining capital of US$33.4/kgV (H1 2022: US$37.8/kgV).
• Adjusted EBITDA¹ profit of US$10.3 million (H1 2022: US$15.6 million).
• Operating profit of US$2.1 million (H1 2022: US$6.1 million).
• Net loss of US$12.5 million (H1 2022: net loss US$0.3 million).
• Free cash outflow² of US$2.7 million (H1 2022: inflow of US$7.1 million).
• Cash and cash equivalents of US$3.7 million (2022: US$10.9 million).
• Net debt³ of US$90.7 million (2022: US$79.5 million) including Production Financing Agreement of US$35.1 million.”

Group Priorities and FY2023 operational highlights

• “On 11 September 2023, the Company announced a Binding Term Sheet with Southern Point Resources (“SPR”) for a cumulative proposed investment of between US$69.5-US$77.5 million.
• Bushveld has since received the ZAR150 million (~US$8.1 million) interim working capital funds as part of the transaction. The Company continues to make progress on the overall transaction.
• Management is confident the restructuring of the Orion Mine Finance (“Orion”) convertible loan of ~US$45 million (capital plus interest) will be completed before the end of December 2023.
• Bushveld remains on track to meet the revised 2023 production guidance of between 3,700 mtV and 3,900 mtV, and weighted average production cash cost (“C1”) guidance of between US$26.6/kgV and US$26.9/kgV (ZAR481/kgV and ZAR487/kgV).
• Vanchem produced 160mtV in July and 175mtV in August, 63% higher than the average monthly production of 103mtV achieved in H1 2023.
• Vametco produced 132mtV in July and 215mtV in August.”

Largo Inc. [TSX:LGO] [GR:LR81] (LGORF)(LGO)

Largo Inc. is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil as well as a producer of VRFBs.

On October 17, Largo Inc. announced: “Largo reports third quarter 2023 production and sales results and begins hot commissioning of its 6.1 MWh Vanadium Redox Flow Battery; Production and cost guidance remains unchanged.” Highlights include:

• “V₂O₅ production of 2,163 tonnes (4.8 million lbs¹) vs. 2,906 tonnes produced in Q3 2022, including 644 tonnes in July, 775 tonnes in August and 744 tonnes in September.
• Global V₂O₅ recovery rate³ of 76.9% in Q3 2023 vs. 80.7% in Q3 2022.
• V₂O₅ equivalent sales of 2,385 tonnes vs. 2,796 tonnes sold in Q3 2022.
• The average benchmark price per lb of V₂O₅ in Europe was $8.03, a 2.5% decrease from the average of $8.23 seen in Q3 2022.
• The ramp-up of its new ilmenite concentration plant continues with ilmenite concentrate production of 350 tonnes in August and 700 tonnes in September.
• Largo Clean Energy (“LCE”) completed site acceptance testing of its Enel Green Power España (“EGPE”) 6.1 MWh vanadium redox flow battery (“VRFB”) deployment and submitted results to EGPE, with the expectation of completing the hot commissioning phase of the battery; Provisional acceptance is expected in Q4 2023.
• 2023 production, sales, cost and capital expenditures guidance remain unchanged.”

Energy Fuels Inc. [TSX:EFR] (UUUU)

Energy Fuels state they are “the No. 1 uranium producer in the U.S. with a market-leading portfolio,” as well as being a small vanadium producer.

No news for the month.

Ferro-Alloy Resources [LON:FAR]

FAR is developing the giant Balasausqandiq vanadium deposit in Kyzylordinskaya Oblast of southern Kazakhstan. FAR state: “The ore at this site has a significantly higher grade than all other primary vanadium extraction sites, which allows for much lower processing costs.”

On October 10, Ferro-Alloy Resources announced: “Existing operation Q3 production results.”

Q3 Production Results

On October 17, Ferro-Alloy Resources announced:

Sale of Second Tranche of Exempt Offer Bond Programme. Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is pleased to announce the sale of all bonds issued under the US$5m second tranche (the “Second Tranche”) of the Kazakhstan exempt offer bond programme (the “Programme”).

Western Uranium & Vanadium Corp. (OTCQX:WSTRF)

Western Uranium & Vanadium Corp. own the Sunday Mine Complex which is an advanced-stage mine property consisting of five interconnected underground mines in Colorado, USA.

No news for the month.

Vanadium developers

Neometals Ltd [ASX:NMT] (OTCPK:RDRUY) (OTCPK:RRSSF)

Neometals owns 100% of the Barrambie Titanium Vanadium Iron Project in Western Australia. Barrambie’s Eastern Band is one of the highest-grade hard rock titanium deposits globally.

On September 29, Neometals announced: “Annual report to shareholders.”

On September 29, Neometals announced: “ESG and Sustainability Report.”

On October 2, Neometals announced: “Vanadium recovery project update.” Highlights include:

• “Shareholders in Neometals’ vanadium recovery project have extended the timeline for Financial Investment Decision (“FID”).
• Project-level equity finance advancing with preferred investor.
• Debt financing club, led by European Investment Bank, also progressing favorably with credit approval expected in October 2023.”

Australian Vanadium Limited [ASX:AVL] [GR:JT71] (OTCQB:ATVVF)

Australian Vanadium is an emerging vanadium producer focused on their Australian Vanadium Project in Western Australia. VSUN Energy was launched by AVL in 2016 to target the energy storage market for vanadium redox flow batteries [VRFBs].

On September 27, Australian Vanadium announced:

Annual report 2023…Letter from the chair…Financial Year 2023 saw Australian Vanadium Limited (AVL) continue to make material progress in advancing the Australian Vanadium Project (the Project) towards production. The Project remains one of the world’s lowest-cost and largest vanadium projects and we continue to target first production in 2025…The positive outlook for the Project continues to attract strong support from a range of government and export finance agencies, as well as potential offtake partners. During FY22, the Company secured a $49 million grant from the Australian Government which will be of benefit as we seek to optimize and finalize our financing and offtake arrangements.

Technology Metals Australia [ASX:TMT] – Merger with AVL

The Company’s primary exploration focus is on the 100% owned Gabanintha Vanadium Project located 40km southeast of Meekatharra in the mid-west region of Western Australia. Technology Metals Australia has combined the high-grade, high-quality Yarrabubba deposit with the Gabanintha Vanadium Deposit to form the Murchison Technology Metals Project (MTMP).

On September 29, Technology Metals Australia announced: “2023 annual report.”

On October 26, Technology Metals Australia announced: “Quarterly activities report for the three months ended 30 September 2023.” Highlights include:

• “Technology Metals and Australian Vanadium Limited agree to merge via a proposed Scheme of Arrangement under which Australian Vanadium will acquire 100% of the shares in Technology Metals.
• Combination is a logical consolidation of adjoining projects across a contiguous orebody expected to unlock material synergies to become the leading Australian vanadium developer with a world-class asset.
• Establishment of a joint TMT and AVL Technical Working Group to assess optimal development and processing pathway with work underway.
• Progress maintained on key infrastructure requirements to support construction and operation of the Murchison Technology Metals Project (MTMP).
• Positive consultation with Traditional Owners consistent with the Company’s ESG philosophy.”

Tivan Limited [ASX:TVN] (formerly TNG Ltd [ASX:TNG](OTCPK:TNGZF)

Tivan Limited is an Australian resources company focused on the evaluation and development of its Mount Peake Vanadium-Titanium-Iron project. The Mount Peake Project is located 235km north-northwest of Alice Springs in the Northern Territory of Australia. Tivan Limited is well advanced with a massive $4.7b NPV8%, but relies on titanium and iron with a lower grade vanadium by-product. Tivan owns 100% of the Speewah Mining Pty Ltd (from King River Resources Limited [ASX:KRR]) the owner of the Speewah Vanadium-Titanium-Iron Project in WA.

On October 6, Tivan Limited announced:

Technical update on…the Speewah Vanadium-Titanium-Iron Project (“Speewah” or “Project”) in Western Australia, ahead of its transition to a Pre-Feasibility Study phase in the first half of 2024…Today’s update underscores the competitive advantages that Speewah has over vanadium in titanomagnetite resources globally, specifically its high concentrate grade, low strip ratio, close proximity to port and very large size. These characteristics flow through to project economics, in terms of expected revenue, capital expenditure and operating expenditure, that will be defined as Tivan proceeds through traditional project development stage gates in upcoming years.

On October 13, Tivan Limited announced: “Tivan progressing exploration activity at multiple NT projects following comprehensive technical assessment…”

Vanadium Resources Limited [ASX:VR8] [GR:TR3]

Vanadium Resources is a junior exploration company established with the purpose of exploring and developing gold zinc, lead, copper and other mineral opportunities. Vanadium Resources owns 86.49% of a globally significant vanadium project, the Steelpoortdrift [SPD] Project, in Gauteng Province, South Africa.

On September 26, Vanadium Resources announced: “Annual report for the year ended 30 June 2023.”

On October 4, Vanadium Resources announced: “Steelpoortdrift and Tweefontein Projects update.”

On October 19, Vanadium Resources announced: “VR8 increases project interest in Steelpoortdrift to 82%.”

On October 27, Vanadium Resources announced: “Activities report – September quarter 2023.” Highlights include:

• “Front-end engineering design (“FEED”) commenced, with a focus on the final detailed designs of the plants in preparation for tenders to be drawn up.
• Planned Project delivery model is expected to comprise multiple Engineering, Procurement and Construction (“EPC”) contracts over core elements of the operation, with oversight by experienced project managers to mitigate interface risks.
• Project development workstreams progressing well with environmental and water applications advancing through approval process, Social and Labour Plan submitted to regulators, solar power design work and rope conveyor assessment underway.
• Matrix and VR8 have reaffirmed commitments to enter into agency and offtake agreements, with negotiations continuing with potential financiers as the Company seeks to engage lead arrangers of construction funding solutions.
• Strong interest in the remaining product from North American, European and Asian groups has seen the Company continue discussions with a view to securing an agency and/or offtake agreement, together with a strategic investment.
• Global corporate advisory firm GC Partners Limited, headquartered in Hong Kong, appointed to assist with offtake and strategic equity processes underway….”

VanadiumCorp Resource Inc. [TSXV:VRB][GR:NWN] (OTCPK:VRBFF)

VanadiumCorp Resources Inc. 100% owns the Lac Dore Vanadium-Iron-Titanium project in Quebec Canada. The Company also has royalties on the Raglan Nickel-PGM mine. The Company is looking to take a vertically integrated approach and is also developing leading process technologies ‘VanadiumCorp-Electrochem Processing Technology’ and “Electrochem globally patented Electrowinning” technology.

On September 29, VanadiumCorp Resources Inc. announced: “VanadiumCorp announces Electrolyte Plant Equipment Financing…for $775,000 (the “Financing”).”

Richmond Vanadium Technology [ASX:RVT] (“RVT”)

RVT now owns 100% of the Richmond Vanadium Project. It has a global Mineral Resource of

1.8Bt @ 0.36% Vanadium Pentoxide (V2O5).

On October 17, Richmond Vanadium Technology announced: “Quarterly activities report for the period ending 30th September 2023.” Highlights include:

• “RVT is progressing the Bankable Feasibility Study [BFS] and Environmental Impact Statement [EIS] at the Richmond Vanadium Project in North Queensland for a development decision in early 2025.
• Confirmatory metallurgical test work commenced at multiple laboratories in China and Australia for concentrate and high-purity vanadium pentoxide production ahead of detailed pilot plant testing.
• Process design criteria, flowsheet design and equipment selection work advanced for BFS completion expected in Q4 2024.
• Stakeholder engagement, Government liaison and environmental site work progressing as part of the statutory approvals process.
• Baseline Environment, Social & Governance Report released as part of inaugural Annual Report to shareholders.”

Phenom Resources Corp. [TSXV:PHNM] (OTCQX:PHNMF) (formerly First Vanadium Corp.)

The Carlin Gold-Vanadium Property hosts one of North America’s largest richest primary vanadium deposits, located in Nevada. Its West Jerome project targets a large-scale high-grade copper and zinc deposit in Arizona. Carlin has a Historic Inferred Resource 28Mt at 0.525% V2O5 (2010 SRK).

On October 17, Phenom Resources Corp. announced:

Phenom progressing on new U.S. Federal grant applications…Currently, the Company is preparing two submissions to the Department of Energy (DOE) and its Office of Fossil Energy and Carbon Management (FECM) addressing priorities in the Bipartisan Infrastructure Law [BIL] regarding Critical Material Innovation, Efficiency, and Alternatives with the research, development, and demonstration program. DOE’s FECM intends to fund high impact applied RD&D bench and pilot scale projects with this funding opportunity. The Company’s submission drafts for the Carlin Vanadium Project are in their advanced stage of completion. The Company plans to complete by the end of the month and submit before the deadline of November 10, 2023. These submissions are directed to support pre-feasibility and feasibility studies for the Carlin Vanadium Project.

On October 26, Phenom Resources Corp. announced:

Phenom extends vanadium deposit southward…at the Carlin Gold-Vanadium Project in the Carlin Gold Trend of Nevada. In the upper section, the hole has encountered a near-surface mineralized vanadium zone. This intercept is now from the southernmost drill hole through the vanadium deposit, resulting in extending the deposit a further 85 metres (280 feet). The vanadium deposit still remains open southward, westward and northwestward for further expansion. Hole RC23-17, the near vertical hole, encountered the 19.8 metres (65 feet) vanadium unit starting at 73.15 metres (240 feet). Readings from an XRF handheld device which have been found to be fairly reliable with vanadium grades, returned an average of 0.58% V₂0₅%. Laboratory assays will be available in November. True thickness of the intercept is not known. This hole’s nearest neighbour holes were R-128 and DDH-4 which encountered 13.7m @ 0.51% V₂0₅ and 7.0 m @ 0.91% V₂0₅%, respectively.

Graphite miners with potential vanadium projects

• Syrah Resources Limited [ASX:SYR] (OTCPK:SYAAF) (OTC:SRHYY).
• NextSource Materials [TSX:NEXT].
• DNI Metals Inc. [TSXV:DNI] [GR:DG7N] (OTC:DMNKF).

Other listed vanadium juniors

• BlackRock Metals (Private).
• Blue Sky Uranium Corp. [TSXV:BSK] (OTCQB:BKUCF).
• Critical Minerals Group [ASX:CMG].
• Currie Rose Resources Inc. [TSXV:CUI].
• Gladiator Resources [ASX:GLA].
• Golden Deeps [ASX:GED].
• Intermin Resources [ASX:IRC].
• Manuka Resources [ASX:MKR].
• Maxtech Ventures [CSE:MVT].
• New Energy Minerals [ASX: NXE].
• Pursuit Minerals [ASX:PUR].
• QEM Limited [ASX:QEM].
• Sabre Resources [ASX:SBR].
• Santa Fe Minerals [ASX:SFM].
• Strategic Resources Inc. [TSXV:SR] (OTCPK:SCCFF).
• Surefire Resources [ASX:SRN].
• Trigon Metals Inc. [TSXV:TM] (OTC:PNTZF).
• UVRE [ASX:UVA].
• Venus Metals [ASX:VMC].
• Victory Metals [TSXV:VMX].
• Viking Mines [ASX:VKA].

VRFB Companies

• Protean Energy [ASX:POW] [GR:SHE1].
• Enerox GmbH (90% Bushveld/10% CellCube Energy Storage Systems).
• Invinity Energy Systems plc (LSE:IES) (IVVGF) (OTCQX:IESVF).

Conclusion

October saw V2O5 prices and ferrovanadium prices lower.

Highlights for the month include:

• Elemental’s VRFB has commenced operation in Alberta, Canada.
• Energy Dome, Invinity, Form, Redflow projects among DOE’s US$325 million Long Duration Energy Storage (“LDES”) winners.
• Innovation arm of US Department of Defense trials flow batteries. They will trial Redflow’s zinc-bromine flow battery and CellCube’s VRFB technology.
• Bushveld Minerals reports H1, 2023 net loss of US$12.5 million.
• Largo Inc. begins hot commissioning of its 6.1 MWh VRFB.
• Australian Vanadium – “We continue to target first production in 2025”.
• Vanadium Resources Limited increases project interest in Steelpoortdrift to 82%.
• Phenom Resources extends vanadium deposit southward at the Carlin Gold-Vanadium Project in Nevada, USA.

As usual, all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.