Vanadium Miners News For The Month Of November 2018

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Includes: AMVMF, APAFF, ATVVF, AUEEF, BSHVF, CCC, CCCCF, GLCNF, LGORF, MTTGF, MVT, PCY, PNTZF, PRPCF, PTY, RDRUY, RRSSF, SRHYY, SYAAF, UUUU, VDMRF, WSTRF
by: Matt Bohlsen
Summary

Vanadium spot prices mostly moved sideways for the past month ending slightly lower.

Vanadium market news - Bushveld - "Vanadium batteries the solution to meet growing energy storage demand."

Vanadium company news - Vanadium producers report record profits due to record vanadium prices.

Welcome to Vanadium miners news. November saw vanadium China spot prices move sideways with a slight fall the past day. China Vanadium spot prices have now risen over 5 fold in the past 2 years.

For some background you can read my earlier articles:

Vanadium uses

Vanadium is traditionally used to harden steel. However Vanadium Flow Batteries (VRFBs) are becoming increasingly popular especially for commercial energy storage, most notably in China.

Vanadium oxide spot price history

China Vanadium Pentoxide [V2O5] Flake 98% Price - USD 32.10/lb

Source: Vanadiumprice.com

Vanadium demand versus supply

On November 14 Engineering News reported:

Vanadium batteries the solution to meet growing energy storage demand – Bushveld. Data by US-based multiservice professional firm Navigant shows that VRFB demand is expected to increase to over 18 000 MWh by 2027. However, keeping market researcher BMI Research’s suggested 25% market share in mind, Nikomarov on Tuesday noted that this could increase to over 27 500 MWh by 2027. If these forecasts hold true, 82 000 t of vanadium will be needed just for VRFBs, he said. Taking the BMI forecast into account, this could increase to over 96 000 t.....Compared with lithium-ion batteries, which Nikomarov noted are much stronger for shorter duration applications, VRFB growth will be seen in larger uses, such as utility-scale energy storage over the next decade.

Source: Australian Vanadium presentation

Vanadium demand forecast to outstrip supply 2018-2025

Source: Technology Metals Australia investor presentation & TTP Squared

Vanadium market news

In 2017 Robert Friedland stated:

We think there’s a revolution coming in vanadium redox flow batteries,” he says. "You’ll have to get into the mining business and produce ultra-pure vanadium electrolyte for those batteries on a massive scale. We’re very deeply interested in how you store electrical energy in the grid. The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be done with a lithium battery. With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.

Vanadium miner news

Vanadium producers

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

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

No vanadium specific news for the month. I did read Glencore produced 20.9 mlb of vanadium from own sources in 2017.

AMG Advanced Metallurgical Group NV [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.

On November 1 AMG released their Q3 results stating: "AMG Critical Materials generated EBITDA of $52.1 million during the third quarter of 2018, an increase of 122% from $23.5 million in the third quarter of 2017, thanks to increased vanadium prices and strong financial performance in chrome metal and aluminum products."

You can view the latest investor presentation here.

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. Bushveld Minerals 100% owns Bushveld Vametco Limited which has a controlling interest of 75% in an existing low-cost production platform, Vametco Alloys, with ~3.5% of global market share. Quality brownfield processing infrastructure in close proximity to Bushveld deposits.

On November 9 Bushveld announced: "Bushveld Vanadium Q3 operational update." Highlights include:

  • "Consolidation of Vametco ownership, following the acquisition, of Sojitz's underlying effective 16% interest in Vametco Alloys (PTY) Ltd for US$20 million in September 2018, increasing Bushveld Minerals effective interest to 75%, subsequently reduced to 74% following completion of the sale of 1% to its Black Economic Empowerment shareholders, in line with the requirements of the mining regulations of South Africa.
  • Vametco's production for Q3 2018 was 537 mtV in the form of NitrovanTM from magnetite concentrate (Q3 2017: 669 mtV), a decrease of approximately 14.6% relative to Q2 2018 (Q2 2018: 629 mtV), primarily due to a 16 day unprotected industrial action during which the plant ceased operations.
  • As a result of the industrial action and an unplanned seven day kiln maintenance exercise, Vametco's 2018 production guidance has been reduced downwards from 2,850 mtV to 3,000 mtV to between 2,600 mtV and 2,650 mtV.
  • Ferrovanadium price averaged US$85.8/KgV in Q3 2018, an increase of 24% relative to the previous quarter.
  • Ferrovanadium price has continued to strengthen with the Metal Bulletin FeV mid-price averaging US$114/KgV during the month of October 2018."

On November 22 Bushveld tweeted: "The Bushveld Complex is the "Pilbara" of Vanadium production, and our primary vanadium resource base is the largest at 440 Mt" says Fortune Mojapelo, presenting at the Renewable Metals Connect Conference."

On November 26 Bushveld tweeted: "Our vertical integration business model provides a long term hedge to the vanadium price" says Fortune Mojapelo at the Natural Resources Forum, London."

You can view the latest investor presentation here.

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." Regarding vanadium the company state they have "32M lbs M&I vanadium resources at La Sal & Whirlwind Mines (1% avg. grade)." In 2013 the company produced 1.5M lbs of V2O5, and due to the price recovery they are resuming vanadium production in 2018.

On November 5 Energy Fuels announced:

Energy Fuels announces Q3-2018 results, including $51.3 million of working capital..... During the quarter, the Company continued preparations for its planned November 2018 campaign to recover up to approximately 4.0 million pounds of vanadium from existing pond solutions at the White Mesa Mill, and commenced its vanadium test-mining program, both aimed at allowing the Company to capitalize on current vanadium market strength.

You can view the latest investor presentation here.

Largo Resources [TSX:LGO] [GR:LR81] (OTC:OTCQB:LGORF)

Largo Resources is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil. The company state: "The Maracás Menchen mine possesses the world's highest grade vanadium deposit - P&P reserve grade of 1.17% V2O5 is over double the industry average. On track to be one of the lowest cost producers of vanadium, and a 6 year take or pay off-take agreement with Glencore for 100% of production."

On November 2 Largo resources announced:

Largo Resources secures Maracás expansion permit in Brazil. The expansion will see production capacity at the Maracás Menchen Mine increase 25% from the nameplate rate of approximately 800 tonnes per month of vanadium pentoxide ("V2O5") to 1,000 tonnes per month (the "Expansion Project"). The enhanced production rate at the Maracás Menchen Mine is expected to result in an additional 200 tonnes of V2O5 being produced per month from and after June 2019 and capital expenditures for the plan are anticipated to total approximately US$15.5 million using current exchange rates.

On November 13 Largo resources announced: "Largo Resources reports record Third Quarter 2018 cash flows before non-cash working capital items of $127.5 Million, on revenues of $149.5 million." Highlights include:

  • "Net income of $71.4 million and basic earnings per share of $0.14.
  • Revenues of $149.5 million in Q3 2018, a 179% increase over Q3 2017 and a 45% increase over Q2 2018.
  • Cash provided before non-cash working capital items1 of $127.5 million in Q3 2018, an increase of 64% over Q2 2018.
  • Cash operating costs2 of $5.41 (US$4.14) in Q3 2018.
  • Record production of 2,563 tonnes of vanadium pentoxide (V2O5) in Q3 2018, a 4% increase over Q2 2018 and a 16% increase over Q1 2018.
  • Record overall V2O5 recovery rate of 82.2% achieved during the month of September.
  • Cash balance of $128.1 million and net debt level2 of ~$35 million as of September 30, 2018.
  • Average V2O5 price of ~US$19.66/lb V2O5 in Q3 2018."

You can view the latest investor presentation here.

Vanadium developers

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

Neometals is primarily a lithium producer however they 100% own 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 November 16 Neometals announced:

Neometals commences update of Barrambie DFS. The updated Study will examine staged development options including offshore processing of crushed ore, onsite production of a high-grade concentrate for sale, and refining to produce vanadium chemical products. The Barrambie deposit sits on a granted mining lease, with full native title agreement and ministerial approval for the development of an open-cut mine and processing plant in 2012, extension of term currently pending. Updated Barrambie Defintive Feasibility Study scheduled for completion in the June quarter 2019.

You can view the latest investor presentation here, or "An Update On Neometals", or "Neometals Managing Director Chris Reed talks with Matt Bohlsen of Trend Investing."

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

Australian Vanadium is an emerging vanadium producer focused on the Gabanintha deposit in Western Australia.

On November 18 Australian Vanadium announced: "Resource Update at Gabanintha Vanadium Deposit increases Indicated Mineral Resource." Highlights include:

  • "Total Mineral Resource updated to 183.6Mt at 0.76% vanadium pentoxide (V2O5) from massive and disseminated zones consisting of:
    • Measured Mineral Resource of 10.2Mt at 1.11% V2O5,
    • Indicated Mineral Resource of 40.7Mt at 0.66% V2O5, and
    • Inferred Mineral Resource of 132.7Mt at 0.77% V2O5.
  • The revised Gabanintha Mineral Resource includes a distinct massive magnetite high-grade zone of 7Mt at 1.00% V2O5 consisting of:
    • Measured Mineral Resource of 10.2Mt at 1.11% V2O5,
    • Indicated Mineral Resource of 12.1Mt at 1.05% V2O5, and
    • Inferred Mineral Resource of 74.5Mt at 0.97% V2O
  • The massive magnetite high-grade zone in the Measured and Indicated Resource category now extends over 2.7km. AVL total strike length extends over 11km."

You can view the latest investor presentation here, or read "Australian Vanadium Managing Director Vincent Algar Talks With Matt Bohlsen Of Trend Investing."

Technology Metals Australia [ASX:TMT]

The company's primary exploration focus is on the 100% owned Gabanintha Vanadium Project located 40km south east of Meekatharra in the mid-west region of Western Australia.

On October 30 Technology Metals Australia released their "Quarterly Activities Report and Appendix 5B Sep 2018.

On November 8 Technology Metals Australia announced: "Project enhancing RC drilling confirms high grade continuity. RC drilling successful in both infilling and extended defined Gabanintha mineralisation."

Catalysts include a DFS by April 2019, and a possible 13ktpa producer by 2021. You can view the latest investor presentation here, or read "Technology Metals Australia Executive Director Ian Prentice Talks With Matt Bohlsen Of Trend Investing."

TNG Ltd [ASX:TNG] [GR:HJI] (TNGZF)

TNG 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. TNG Ltd is well advanced with a massive $4.7b NPV8%, but relies on titanium and iron with a lower grade vanadium by-product.

On October 31 TNG Ltd released their "Quarterly Activities and Cashflow Report."

On November 21 TNG Ltd announced:

Mount Peake Mineral Leases granted. The four Mineral Lease tenements cover the proposed open pit mine, the associated mine and plant infrastructure, the camp site, and the rail loading facility area." Managing Director Mr Paul Burton stated: "We are rapidly ticking off the boxes towards the Mount Peake development, with key announcements over the past few months including the signing of a Native Title Agreement, the signing of a binding term sheet for titanium off-take with Swiss commodity trader DKSH and now the formal award of the Mount Peake Mineral Leases by the NT Government. “With these important milestones now complete, we will be squarely focused on moving ahead with project financing negotiations.”

You can view the latest investor presentation here.

Aura Energy [ASX:AEE] [GR:VU1] (OTC:AUEEF)

Aura Energy is an Australian-based minerals company that 100% owns polymetallic and uranium projects with large resources in Sweden (Häggån Project) and Mauritania (Tiris project). Aura’s focus is on the Häggån Project, located in Sweden’s Alum Shale Province, one of the largest depositories of vanadium in the world.

On October 30 Aura Energy released a "Tiris Project DFS Update.pdf."

On October 31 Aura Energy released their "Quarterly Report September 2018 and Appendix 5B.pdf."

You can view the latest investor presentation here.

Prophecy Development Corp. [TSX:PCY] (OTCQX:PRPCF) (NYSEARCA:PCY)

Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange. Prophecy's objective is to advance the Gibellini Black Shale primary vanadium project in the Battle Mountain region in northeastern Nevada to production. Gibellini aims to be the first active primary vanadium mine in North America.

On November 22 Prophecy announced: "Prophecy Development Corp. announces closing of C$5.52 million bought deal financing at a price of C$0.46 per Common Share."

You can view the latest investor presentation here.

Tando Resources [ASX:TNO]

Tando Resources is a junior exploration company established with the purpose of exploring and developing gold zinc, lead, copper and other mineral opportunities. Tando signed a HoA to acquire 74% of a globally significant vanadium project, the SPD Project, in Gauteng Province, South Africa.

On October 30 Tando Resources released their "Quarterly Activities Report".

On November 19 Tando Resources announced: "Mt Sydney tenement granted." Note it looks prospective for lead and zinc, not vanadium at this stage.

On November 28 Tando Resources announced: "Strong final assays pave way for JORC Resource at SPD."

You can view the latest investor presentation here.

King River Copper [ASX:KRC] (planning to change to King River Resources Limited)

King River holds 785 square kilometres of mineral leases covering a unique geological feature in the Eastern Kimberley of Western Australia, called the Speewah Dome. The company state on their website: "The focus of King River Copper Limited is the exploration for Gold, Silver and Copper." However their deposits also contain vanadium.

On November 2 King River Copper announced: "Vanadium Scoping Study" for their Vanadium-Titanium-Iron Project at Speewah. CapEx was estimated to be A$2-2.5b.

On November 19 King River Copper announced: "Vanadium Project Plan."

You can view the latest investor presentation here.

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

VanadiumCorp Resources Inc. 100% owns the Lac Dore Vanadium-Iron-Titanium project in Quebec Canada. The company also has another smaller project known as the Iron-T Vanadium Project also in Quebec, and royalties on the Raglan Nickel-PGM mine. The company is looking to take a vertically integrated approach and are also developing leading process technologies ‘VanadiumCorp-Electrochem Processing Technology’ and "Electrochem globally patented Electrowinning" technology.

On November 1 VanadiumCorp Resources announced: "VanadiumCorp receives Technical Report. The purpose of the new technical report is to provide the company with a current technical report and to address the continuing default with the BC Securities Commission (BCSC)."

You can view the latest investor presentation here.

First Vanadium Corp. (formerly Cornerstone Metals Inc.) [TSXV: CCC] (OTCQX:FVANF)

Cornerstone’s Carlin Vanadium project 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 28Mst at 0.525% V2O5 (2010 SRK).

On November 7 First Vanadium announced: "First Vanadium step-out drilling expands the Carlin Vanadium Deposit." A resource estimate is expected to be completed before the end of the year.

On November 27 First Vanadium announced: "First Vanadium drills 48.77m (160ft) of 1.02% V2O5 at the Carlin Vanadium Deposit, Nevada."

Investors can read the latest company presentation here.

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.

On October 25 Western Uranium & Vanadium announced: "Western Uranium & Vanadium announces plan to re-open the Sunday Mine Complex. Western is commencing this program with the goals of upgrading the vanadium resource and monetizing these already significant vanadium resource holdings."

Investors can read the latest company presentation here.

Graphite miners with potential vanadium projects

  • Syrah Resources [ASX:SYR] (OTC:OTCPK:SYAAF) (OTC:SRHYY)
  • Triton Minerals [ASX:TON] [GR:1TG]
  • Battery Minerals [ASX:BAT]

Other vanadium juniors

  • NextSource Materials [TSX:NEXT]
  • Cellcube Energy Storage [TSXV:CUBE] (STNUF) (formerly) Stina Resources
  • Golden Deeps [ASX:GED]
  • Sabre Resources [ASX:SBR]
  • Trigon Metals Inc. [TSXV:TM] (OTC:PNTZF)
  • Venus Metals [ASX:VMC]
  • Intermin Resources [ASX:IRC]
  • Vanadium One Energy Corp. [TSXV:VONE] [GR:9VR1] (OTC:VDMRF)
  • Mustang Resources [ASX:MUS] [GR:GGY] (OTCPK:MTTGF)
  • Protean Energy [ASX:POW] [GR:SHE1]
  • Maxtech Ventures [CSE:MVT]
  • BlackRock Metals (Private)

Conclusion

Vanadium spot prices were mostly flat in November ending slightly lower, after their over 50% rise in October. Vanadium is no doubt a super hot metal nowadays and this is leading many companies to re-look at vanadium.

Highlights for the month include:

  • Bushveld - "Vanadium batteries the solution to meet growing energy storage demand."
  • Vanadium producers report record profits due to record vanadium prices.
  • Bushveld - The Bushveld Complex is the "Pilbara" of Vanadium production, and our primary vanadium resource base is the largest at 440 Mt.
  • Largo Resources secures Maracás expansion permit in Brazil.
  • Neometals commences update of Barrambie DFS.
  • Australian Vanadium - Resource Update at Gabanintha Vanadium Deposit increases Indicated Mineral Resource.
  • Technology Metals Australia - "RC drilling successful in both infilling and extended defined Gabanintha mineralisation."
  • TNG Ltd - Mount Peake Mineral Leases granted.
  • King River Copper - Vanadium Scoping Study released for their Vanadium-Titanium-Iron Project at Speewah.
  • First Vanadium step-out drilling expands the Carlin Vanadium Deposit.
  • Western Uranium & Vanadium announces plan to re-open the Sunday Mine Complex.

As usual all comments are welcome.

Disclosure: I am/we are long SYRAH RESOURCES [ASX:SYR], TRITON MINERALS [ASX:TON], NEOMETALS [ASX:NMT], LARGO RESOURCES [TSX:LGO], TECHNOLOGY METALS AUSTRALIA [ASX:TMT], AUSTRALIAN VANADIUM [ASX:AVL]. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.