Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Yellow Rock Resources — Investor Presentation (September 2015)
29 slides from Australian Vanadium's investor presentation, Sep 15, 2015
Slide 1: ASX Market Announcement: Company Presentation
15 September 2015 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 Company Presentation Please find attached a copy of an updated company presentation by Yellow Rock Resources. The updated presentation will be used in a series of broker updates and conferences the company is att
Slide 2: Investing in a vanadium future with Yellow Rock
Investing in a vanadium future with Yellow Rock September 2015 Vincent Algar Chief Executive Officer
Slide 3: Disclaimer
Disclaimer The views expressed in this presentation contain information derived from publicly available Forward Looking Statements sources that have not been independently verified. No representation or warranty is made as No representation or warranty is made as to the accuracy, completeness or rel
Slide 4: Presentation Overview
Presentation Overview • INVESTMENT HIGHLIGHTS • CORPORATE SUMMARY • VANADIUM MARKET Existing market in steel Emerging battery storage market • GLOBALLY SIGNIFICANT PROJECT • ACTIVITY SCHEDULE 3
Slide 5: Investment Highlights
Investment Highlights GLOBALLY SIGNIFICANT VANADIUM-IRON-TITANIUM PROJECT • Large-scale deposit, simple geometry, consistent high grades in massive magnetite horizon • New drilling confirming historical high grades (up to 2.2% V2O5) and widths (up to14m at 1.44% V2O5 ) • Existing large JORC-2004 Ind
Slide 6: Investment Highlights
Investment Highlights VANADIUM DEMAND • Existing strong growth in steel industry (6% CAGR) – over 92% of current market • New Vanadium Redox Battery (VRB) demand set to grow as grid energy storage options increase INVESTOR OPPORTUNITY • Low risk asset and deposit; proposed open-cut mine using establ
Slide 7: Corporate Snapshot
Corporate Snapshot Capital structure and major shareholders Key Statistics (as at 18/8/15) Ordinary shares on issue 761.2m Options on issue (ex at 1.5c YRR Share Price Activity 261m expire Dec 2017) 0.020 18,000,000 Share price AUD $0.011 0.018 16,000,000 Market capitalisation $8.37m (Cash ~$1.3m) 0
Slide 8: Vanadium Markets: Steel
Vv Yellow Rock Vanadium Markets Steel
Slide 9: Vanadium Markets - Steel
Vanadium Markets - Steel Despite reduced rate of steel production, demand for vanadium continues to grow 3% • Steel is primary market (92% of vanadium 4% Steel Alloy consumption) Titanium Alloy Chemical Catalyst • Demand for use in rebar increasing at 6% annually Other (TTP Squared) 92% • Addition o
Slide 10: Vanadium Markets - Steel
Vanadium Markets - Steel “Increases in specific vanadium consumption rate are resulting in more growth than consumption lost from lower production” - Terry Perles, TTP Squared Specific Vanadium Consumption 0.1 0.09 0.091 0.08 0.080 0.07 0.06 Kg V / MT Steel 0.059 0.056 0.055 0.05 0.050 0.04 0.044 0.
Slide 11: Vanadium Markets - Overview
Vanadium V Markets - Overview Future outlook for supply and demand offers compelling opportunity 10
Slide 12: Vanadium Markets: Energy Storage
Vanadium Markets Energy Storage 11
Slide 13: Vanadium in Energy Storage
Vanadium in Energy Storage “Energy storage has the potential to transform our entire energy system.”– Clean Energy Australia 12
Slide 14: Vanadium in Energy Storage
Vanadium in Energy Storage Unique characteristics of Vanadium Redox Batteries (VRBs) » VRBs provide a stable supply of renewable energy; very high capacity ideal for large-scale energy storage applications such as wind and solar » VRBs have unique advantages over other batteries; • Scalability • Lif
Slide 15: Redox Battery Market Developing
Redox Battery Market Developing Increasing implementations of vanadium-based batteries » Gildemeister has been involved in a number of installations including a 200 kW battery on Pellworm Island in Germany and 130kW at the University of New South Wales. » Schmid last year introduced the first “EverF
Slide 16: YRR Vertical Integration Strategy
YRR Vertical Integration Strategy Yellow Rock Resources Gabanintha V-Ti-Fe Project Vanadium production Vanadium Renewable energy for Battery Market production system installer (when in production) for Steel Market Initially, buy Subsidiary (JV) company VSUN created to Electrolyte producer electrolyt
Slide 17: Globally Significant Project
Globally Significant Project 16
Slide 18: Global Player
Global Player Gabanintha Project is significant development project on a global scale in grade and size 17
Slide 19: Publicly Listed Peers
Publicly Listed Peers • Gabanintha globally significant deposit • Undervalued with significant leverage to current share price Resource Tons Resource Grade (V2O5) 350.00 1.6 1.48 1.40 Gabanintha 1.4 300.00 60Mt @0.98%V2O5 as part of 128 Mt @0.7% V2O5 In-Situ Resource Grade V2O5 % 1.2 250.00 In-Situ
Slide 20: Gabanintha Vanadium Project: Drilling to advance existing potential
Gabanintha Vanadium Project Drilling to advance existing potential 19
Slide 21: Gabanintha Vanadium Project: Discrete high-grade zone
Gabanintha Vanadium Project Discrete high-grade zone, simple geometry 20
Slide 22: Gabanintha Vanadium Project: Discrete high-grade zone
Gabanintha Vanadium Project Discrete high-grade zone, simple geometry 21
Slide 23: Gabanintha Vanadium Project
Gabanintha Vanadium Project High grade resource in favorable mining jurisdiction » 100% owned high-grade vanadium project located in the Murchison District of Western Australia, » Excellent project location 600km from the port of Geraldton, 30km from Mining Town of Meekatharra » One of the highest-g
Slide 24: Metallurgical Test Work Update
Metallurgical Test Work Update New test work to define processing path forward • Historical Test work conducted by Amtec in 2009; • Successful Davis Tube magnetic separation test work on fresh and transitional samples • Fresh high grade samples generated V2O5-in-magnetite concentrate grades up to 1.
Slide 25: Vanadium Resource
Vanadium Resource Large high-grade resource JORC In situ Million Material Resource bulk V2O5 % Fe% TiO2 % SiO2 % Al2O3 % LOI% tonnes Class density High grade Indicated 14.4 4.17 1.03 42.14 12.07 11.42 7.84 3.37 Inferred 46.0 4.16 0.97 42.15 11.19 12.37 8.28 3.20 Subtotal 60.4 4.16 0.98 42.15 11.40 1
Slide 26: Concept engineering study shows potential
Gabanintha Vanadium Project Concept engineering study shows potential CONCEPT STUDY PARAMETERS – CAUTIONARY STATEMENT The Concept Study in this presentation (nominal +/- 50% accuracy) is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves
Slide 27: Gabanintha Concept Study
Gabanintha Concept Study Concept engineering study shows potential • Engineering concept study completed in September 2014 – On target for Nov 2015 update • Study used existing Indicated and Inferred Resource of 60 Million Tonnes at 0.98% V2O5, 42.15% Fe and 11.4%TiO2 (High grade zone only) • Consid
Slide 28: Investing in a Vanadium Future
Investing in a Vanadium Future Strong news flow and growth expected in 2015 and 2016 Project Milestones • Environmental approval baseline work underway • Resource update underway and expected before November • Detailed metallurgical study underway to support upgrade to Scoping and PFS, results expec
Slide 29: Vincent Algar, Chief Executive Officer
Vincent Algar, Chief Executive Officer Telephone: +61 (8) 9228 3333 Email: [email protected] Website: yellowrock.com.au Office Location: 129 Edward Street ,Perth, Western Australia 6000 28
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