Vanadiumcorp Resource Inc · TSXV:VRB

Vanadiumcorp Resource — International Titanium Association Conference 2014

40 slides from Vanadiumcorp Resource's conference presentation, October 2014

  1. Slide 1: Master Alloys: Market Trends and Analysis

    Master Alloys Market Trends and Analysis Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation only reflects the personal views and opinions of the Author regarding the molybdenum and vanadium markets. Such opinions are prospective because they are subject to factors of risk and uncertainty, and real future results may diverge considerably from those expressed or

  3. Slide 3: Agenda

    Agenda • Overview • Critical Raw Material Issues – Vanadium – Molybdenum • Strategic Issues • Summary Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 3

  4. Slide 4: Overview

    Overview • Master Alloys in the titanium industry are binary, ternary or multi-component alloys used to efficiently and effectively allow the melting of titanium alloys. • Vanadium and molybdenum master alloys account for approximately 90% of the total annual demand volume • More than 40 master allo

  5. Slide 5: Overview (cont.)

    Overview (cont.) • Quality is an absolutely critical attribute for master alloys given their use in critical applications. • A critical and highly variable cost component in master alloy production is the market price of raw materials • Assurance of supply of the broad range of master alloys necessa

  6. Slide 6: Vanadium

    Vanadium Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 6

  7. Slide 7: Vanadium Consumption

    Vanadium Consumption • Global vanadium consumption is estimated at 93,000 metric tons vanadium (MTV) 2015 • Approximately 92% of demand is from the steel industry • Approximately 5% of demand is from the titanium alloy industry • Approximately 3% of demand is from the chemical and energy storage app

  8. Slide 8: V Consumption by Region 2015

    V Consumption by Region 2015 Total 93,000 MTV India 3% Other 9% Europe CIS 19% 7% North America 11% China Japan 45% 6% Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 8

  9. Slide 9: CAGR 6.7% 75% of growth from China

    CAGR 6.7% 75% of growth from China Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 9

  10. Slide 10: Vanadium Production

    Vanadium Production • Vanadium production is estimated at 82,000 metric tons vanadium in 2015, down considerably from 2014 • Two thirds of current production is based on processing of coproduct vanadium bearing slag from steel mills in China, Russia, South Africa and New Zealand (Coproduct productio

  11. Slide 11: V Production by Country 2015

    V Production by Country 2015 0% Total 82,000 MTV 1% 0% 1% 2% 4% China 6% Russia South Africa 7% North America Europe Japan 54% Korea 15% Taiwan India Australia 10% Brazil Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 11

  12. Slide 12: CAGR 5.5% 95% of growth from China

    CAGR 5.5% 95% of growth from China Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 12

  13. Slide 13: 2003-2015 CAGR: Production 5.5% Consumption 6.7%

    2003-2015 CAGR: Production 5.5% Consumption 6.7% Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 13

  14. Slide 14: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 14

  15. Slide 15: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 15

  16. Slide 16: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 16

  17. Slide 17: Vanadium Summary

    Vanadium Summary • Prices are near historic lows and at or below the cash cost of production for a portion of the supply base. • Global inventory levels are decreasing • Coproduct supply base is threatened by a downturn on the global steel industry • Global demand continues to expand >5% CAGR in the

  18. Slide 18: Molybdenum

    Molybdenum Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 18

  19. Slide 19: Mo Reserves

    Mo Reserves Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 19

  20. Slide 20: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 20

  21. Slide 21: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 21

  22. Slide 22: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 22

  23. Slide 23: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 23

  24. Slide 24: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 24

  25. Slide 25: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 25

  26. Slide 26: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 26

  27. Slide 27: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 27

  28. Slide 28: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 28

  29. Slide 29: BHN Special Materials, Ltd.

    BHN Special Materials, Ltd. Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 29

  30. Slide 30: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 30

  31. Slide 31: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 31

  32. Slide 32: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 32

  33. Slide 33: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 33

  34. Slide 34: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 34

  35. Slide 35: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 35

  36. Slide 36: Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf

    Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 36

  37. Slide 37: Strategic Issues

    Strategic Issues • The quality of master alloys is absolutely paramount and cannot be compromised • The price and market risk associated with vanadium and molybdenum are key drivers to the cost of master alloys. Producers of master alloys must have secure supply of these critical raw materials with

  38. Slide 38: Summary

    Summary • Vanadium and molybdenum markets are experiencing ten year lows in market prices today and in both cases current prices are not sustainable in the long run • Rationalization of vanadium production in South Africa and China could set the stage for a change in the vanadium market fundamentals

  39. Slide 39: Summary (cont.)

    Summary (cont.) • Master Alloy producers can create value for the titanium alloy producers by bringing several capabilities to the table: – All necessary quality certifications – Upstream supply of V and Mo to provide competitive prices and minimize market risk – The experience and ability to bring

  40. Slide 40: Thanks!

    Thanks! Terry Perles, President MoTiV Metals, LLC October 4-7, 2014 • Rosen Shingle Creek Golf Resort • Orlando, FL, USA 40

Vanadiumcorp Resource — International Titanium Association Conference 2014 on 6ix