Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Yellow Rock Resources — Investor Presentation (March 2015)
30 slides from Australian Vanadium's investor presentation, March 2015
Slide 1: The Gabanintha Vanadium Project Investor Update
THE GABANINTHA VANADIUM PROJECT INVESTOR UPDATE March 2015 Vincent Algar Chief Executive Officer 1
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. Any forward looking statements in this
Slide 3: Forward Looking Statements
Forward Looking Statements No representation or warranty is made as to the accuracy, completeness or reliability of the information contained in this release. Any forward looking statements in this presentation are prepared on the basis of a number of assumptions which may prove to be incorrect and
Slide 4: Investment Highlights
Investment Highlights Summary • Large High-grade JORC-2004 Indicated and Inferred Resource at Gabanintha V-Ti-Fe Project in Western Australia; – Total of 125.8Mt @ 0.70% V2O5, 8.64% TiO2 and 32.60% Fe – Contains a separate high-grade Resource of 60.4Mt @ 0.98% V2O5, 11.40% TiO2 and 42.15% Fe – High-
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure and Major Shareholders Key Statistics Ordinary shares on issue 761.2m Options on issue (ex at 1.5c) 261m Share price AUD $0.009 Market capitalisation ~$6.85m (Cash ~$3.6m) Shareholders 1,962 Substantial Shareholders % holding Kimbriki Nominees ~5% Management ~7 %
Slide 6: Vanadium Markets
Vanadium Markets Established Steel and Emerging Energy 6
Slide 7: Vanadium Demand Drivers
Vanadium Demand Drivers Vanadium has extensive applications • Rebar for construction • Buildings, bridges, tunnels • Automotive parts • Aviation and aerospace • Power lines and power pylons • Pipelines • Railway lines, railway cars, cargo containers • Chemical plants, oil refineries, off-shore platf
Slide 8: Vanadium Use
Vanadium Use Steel Alloys Steel is currently the Vanadium by Use largest end-use for 3.5 4.5 vanadium Steel Alloy Titanium Alloy HSLA alloys are the Chemical Catalyst 91 Other leading market for vanadium in the steel industry Uses of Vanadium in Steels 3 14 HSLA Addition of 0.2% of Vanadium 48 Full
Slide 9: Vanadium in Energy Storage
Vanadium in Energy Storage Generation and Storage Markets Rapidly Developing 9
Slide 10: Global Growth in Renewable Energy Demand
Vanadium in Energy Storage Global Growth in Renewable Energy Demand “The world is experiencing a tipping point in the use of wind and solar energy generation. In Australia today 1.2 million Solar PV systems are installed, compared to just 2,500 in 2007” One technology that has the potential to trans
Slide 11: Potential for Huge Growth in Vanadium Demand
Vanadium in Energy Storage Potential for Huge Growth in Vanadium Demand “Vanadium Redox Batteries provide a stable supply of renewable energy, its very high capacity makes it ideal for large-scale energy storage applications such as wind and solar” The unique characteristics of VRB’s, specifically t
Slide 12: Potential for Huge Growth in Vanadium Demand
Vanadium in Energy Storage Potential for Huge Growth in Vanadium Demand “The grid-scale energy storage industry is tipped to grow from an estimated $US 2.8 Billion to >$US 100 Billion by 2020. With VRB’s potential to capture 30% of this market, and V2O5 electrolyte use in the batteries close to 50%
Slide 13: Redox Battery Market Developing
Redox Battery Market Developing Strong sector interest and increasing implementations • Sumitomo completed a demonstration power generation and storage system at its Yokohama Works – using the world’s then largest vanadium redox flow battery and Japan’s largest concentrated photovoltaic (CPV) units.
Slide 14: Globally Significant Project
Globally Significant Project Gabanintha Grade and Location Highly Favourable 14
Slide 15: Gabanintha Project is Significant on a Global Scale
Vanadium Resource Gabanintha Project is Significant on a Global Scale Lac Dore Gibellini Mt Peake Gabanintha Maracas Barambie Balama Bushveld Vanadium 15
Slide 16: Publicly Listed Peers: Market Capitalisation
Publicly Listed Peers Undervalued Compared to Peers Company Market Capitalisation and Vanadium Deposit Grade at 5/3/2015 500 1.6 1.48 450 1.40 1.4 400 In-situ Resource Grade V2O5% 1.2 350 0.98 1.0 Market Capitalisation 300 250 0.82 0.8 (AUD) 200 0.6 150 0.47 0.42 0.4 0.38 100 0.30 0.28 0.27 0.2 50 0
Slide 17: Publicly Listed Peers: Resource Tons and Grade
Publicly Listed Peers Gabanintha Globally Significant Deposit Grade Vanadium Resource Company Peer Comparison In Situ Resource Tons and Grade 350.00 1.6 1.48 1.40 300.00 1.4 In-Situ Resource Grade V2O5 % In-Situ Resource Tons (Millions) 1.2 250.00 0.98 1 200.00 0.82 0.8 150.00 0.6 0.47 0.42 100.00 0
Slide 18: 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, ~600km from the port of Geraldton • One of the highest grade V2O5 deposits in the world; – *JORC Compliant Indicated & Inf
Slide 19: Large High-Grade Resource
Vanadium Resource Large High-Grade Resource JORC In situ Million Material Resource bulk V2O5 % Fe% TiO2 % SiO2 % Al2O3 % LOI% tonnes Class density High Indicated 14.4 4.17 1.03 42.14 12.07 11.42 7.84 3.37 grade 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 20: Discrete High-Grade Zone, Simple Geometry
Vanadium Resource Discrete High-Grade Zone, Simple Geometry • Mineralisation outcrops for over 12km and has been drilled at a wide spacing along strike at 100 – 500m • Mineralisation is up to +100m wide in places and continuous • Supports inexpensive mining costs • Strong potential to increase grade
Slide 21: Drilling to Advance Existing Potential
Gabanintha Vanadium Project Drilling to Advance Existing Potential Northern Resource Area 21
Slide 22: Discrete High-Grade Zone, Simple Geometry
Vanadium Resource Discrete High-Grade Zone, Simple Geometry 22
Slide 23: 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 24: Gabanintha Concept Study
Gabanintha Concept Study Concept Engineering Study Shows Potential • Engineering Concept Study Completed in September 2014 • Technically low risk and long life (+20 years) • Estimated C1 Cash operating cost1 of A$7.26/kg (A$3.29/lb) vanadium pentoxide could position Yellow Rock as a competitive open
Slide 25: Vanadium Supply
Vanadium Supply Global production by method Global Production by Method and Cost Gabanintha ~ Cost of ~ Cost of ~ Cost of Production Production Production Source % of Total (US$/lb V2O5) (A$/lb V2O5) (A$/lb V2O5) By-product 65 $3.30 $3.54 - Slag Vanadium Ores 20 $4.10 $4.41 $3.29 (Mine Production) S
Slide 26: Market Developments
Market Developments Active Exploration and Resource Development Activities in 2015 26
Slide 27: Strategic Partners
Strategic Partners Industry tie-ups with end users • Yellow Rock recognises the importance of partners to assist with the advancement of the Gabanintha Vanadium Project • Key partnerships are being developed in both the steel and renewable energy markets to ensure competitive demand for any future p
Slide 28: Active Sector in 2014
Vanadium Resource Sector Active Sector in 2014 • Largo Resources (TSXV: LGO) Completed plant and commenced staged production startup. Offtake agreement with Glencore for V2O5 Product. – 6 year take or pay off-take agreement for 100% of all material produced • Bushveld Minerals (AIM:BMN) Released a s
Slide 29: Planned Activities
Planned Activities Strong News Flow From Yellow Rock Expected in 2015 • Follow-up work programs are in the advanced planning stages on the back of concept study results and are expected to include database improvements, drilling, baseline environmental data capture and initial stakeholder liaison. K
Slide 30: Vincent Algar, Chief Executive Officer
Vincent Algar Chief Executive Officer Telephone: +61 (8) 9228 3333 Email: [email protected] [email protected] Website: www.yellowrock.com.au wellowrock.com.au Office Location: 420 Newcastle Street West Perth, Western Australia 6005 30
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