Vanadium Miners News For The Month Of October 2021

Summary

  • Europe vanadium pentoxide spot prices were flat for the past 30 days. China and Europe Ferrovanadium prices were mostly flat.
  • Vanadium market news - China's 2022 vanadium demand from VRFB forecast to rise and to be flat from steel.
  • Vanadium company news - Bushveld ramping up vanadium production in 2022. Largo lowers 2021 production guidance.
  • TNG Ltd to progress development of Mount Peake Project with a consolidated and integrated processing facility at the mine site. Western Uranium & Vanadium Sunday Mine Complex reports ore body may be 'significantly larger' than expected.
  • I do much more than just articles at Trend Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Vanadium V, chemical element. 3D rendering isolated on black background
AlexLMX/iStock via Getty Images

Welcome to Vanadium miners news. October saw flat Europe V2O5 prices and a slower month for news.

Vanadium uses

Vanadium is traditionally used to harden steel. New 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 Vanadium Pentoxide [V2O5] Flake 98% 1 year chart - Price = USD 8.00/lb (China price not given)

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 37.00, Europe = USD 32.75

Source: Vanadiumprice.com

Vanadium demand versus supply

The charts below show energy storage to be a new source of vanadium demand, and overall demand looks likely to grow very strongly to 2025.

Vanadium total demand forecast to outstrip supply 2020-2025

Source: Technology Metals Australia investor presentation & TTP Squared

An April 2021 Wood Mackenzie report stated:

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.

Source: Woodmac.com

An early 2021 Roskill post stated:

The vanadium market is set to tighten over the year and more so in 2022, driven by higher demand but also by tighter supply, as Chinese steel slag producers are running close to capacity. Outside of China, incremental supply will also be limited and come mainly from AMG's new facility in Ohio, USA, and Bushveld's Vametco gradually increasing its production in South Africa. Roskill believes that vanadium prices reached a low in Q4 2020 and should gradually rebound in 2021... Vanadium redox batteries (VRBs) could become a major market for vanadium amid growing demand for energy storage, should the technology develop... On the supply side, Roskill does not expect significant tonnages from new projects to enter the market before 2024.

In 2017 Robert Friedland stated:

We think there's a revolution coming in vanadium redox flow batteries...

Vanadium market news

On October 21, Argus Media reported:

China's 2022 vanadium demand from VRFB forecast to rise. A rise in China's vanadium demand from the vanadium redox flow battery (VRFB) industry is expected to rise to at least 9,100t of vanadium pentoxide (V2O5) equivalent in 2022 from this year's 3,640t, on the back of increasing energy storage projects. Vanadium demand from the steel-producing industry will hold stable next year when China's steel production is expected to be unchanged from the 2021 and 2020 levels, in line with the government's commitment to curb steel production growth for its carbon reduction targets. New global vanadium production projects will have a combined capacity this year of 7,000t-11,000t of V2O5.... This includes Russia's Evraz with 1,320-2,640t, China with 4,000-8,000t, White Mesa Mill with 600-900t, Brazil's Largo with 425-925t and South Africa's Bushveld Vametco with 837-1,284t. These projects started production in the first half of the year. Global vanadium production was 102,365t of vanadium metal equivalent in 2020, down from 102,631t in 2019 because of reduced demand caused by the Covid-19 pandemic. China accounted for 61.44pc of global vanadium output and 59.75pc of global vanadium consumption last year....

Vanadium miner news

Vanadium producers

Glencore [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 news for the month.

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 October 6, AMG Advanced Metallurgical Group NV announced: "AMG Advanced Metallurgical Group N.V. issues report on Payments to Governments in 2020."

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.

On September 27, Bushveld Minerals Limited announced: "Unaudited interim results for the six months ended 30 June 2021." Highlights include:

    • Revenue of US$47.0 million a 9 per cent increase relative to H1 2020 (H1 2020: US$43.1 million), supported by an improved average realised price of US$29.24/kgV (H1 2020: US$24.20/kgV), partly offset by lower sales volumes in H1 2021 of 1,608 mtV1 (H1 2020: 1,765 mtV).

    • Group production in H1 2021 of 1,574 mtV, a 5.2 per cent decrease relative to H1 2020 (H1 2020: 1,649 mtV) as a result of unplanned stoppages, a 35-day planned maintenance shutdown during Q1 2021 and the unprotected industrial action at Vametco in April 2021.

    • Improved operational performance at Vametco post the maintenance programme...

    • EBITDA loss of US$10.8 million (H1 2020: US$1.0 million) primarily due to a stronger ZAR:USD exchange rate on costs in H1 2021 resulting in a negative impact amounting to US$7.3 million. The improved operational performance at Vametco in Q2 2021 was not sufficient to offset the challenging start in Q1 2021.

    • Sustaining capital expenditure of US$6.1 million (H1 2020 of US$0.1 million), supporting the recent operational stability.

    • Cash and cash equivalents as at 30 June 2021 of US$31.6 million (December 2020: US$50.5 million).

    • Approximately US$12.7 million was realised from the sale of the investment in Invinity Energy Systems Plc ("Invinity") and the profit on the sale is not included in EBITDA. The profit realised on the original investment of US$5 million was approximately US$7.7 million.

    • Net debt as at 30 June 2021 of US$54.4 million (December 2020: US$33.7 million), including production financing agreement ("PFA") of US$29.3 million...

    • On track to meet 2021 Group production guidance of between 3,400 mtV and 3,600 mtV and ramping up at Vanchem using the reallocated PFA capital ring fencing, to increase Group production to a steady-state run rate of between 5,000 to 5,400 mtV by the end of 2022. Production growth reduces unit cost and increases profitability.

On October 21, Bushveld Minerals Limited announced: "Q3 and 9 months 2021 operational update."

You can view the latest investor presentation here.

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

Largo Resources is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil.

On October 20, Largo Resources announced: "Largo Resources provides operational update; Reports strong V2O5 production of 3,260 tonnes in Q3 2021." Highlights include:

    • V2O5 production of 3,260 tonnes (7.2 million pounds1) in Q3 2021, a 5% increase over Q3 2020 and 6% above Q2 2021.

    • Total V2O5 equivalent sales of 2,685 tonnes in Q3 2021, a 16% increase over Q3 2020 and 11% below Q2 2021 due to logistical challenges.

    • Largo Clean Energy ("LCE") selected to receive $4.2 million in funding from the Department of Energy ("DOE") to scale up U.S.-based manufacturing of flow battery and long duration storage systems; Receipt of funding is subject to the completion of the award negotiation with the DOE.

    • On July 30, 2021, LCE received a notice to proceed ("NTP") on its previously announced sales contract with Enel Green Power España ("Enel") for the delivery of a 5 hour 6.1 MWh VCHARGE± system located in Spain.

    • Revised 2021 production and sales guidance: Production guidance lowered to 11,400 to 11,800 tonnes of V2O5 equivalent from 12,000 to 12,500 tonnes; Sales guidance lowered to 11,200 to 11,800 tonnes of V2O5 equivalent from 12,250 to 12,750 tonnes.

    • Demand in all of the Company's key vanadium markets remained strong in Q3 2021: Average Fastmarkets European V2O5 price of approximately $9.40 per lb in Q3 2021, a 76% increase over the average in Q3 2020.

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", as well as being a recent 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 September 28, Ferro-Alloy Resources announced: "Interim results for the six months ended 30 June 2021." Highlights include:

    • Improved financial results from existing vanadium processing operations reflecting higher realised prices offset by lower production due to Covid-19 related impacts that have now been largely resolved: Vanadium pentoxide prices rose 63% from US$5.2/lb in January 2021 to US$8.5/lb over the period. Prices for molybdic oxide and ferro-molybdenum grew 109% and 83% respectively.

    • Enhanced financial position to support new Balasausqandiq vanadium project development with US$8.2m in cash as at 30 June 2021 (2020: US$0.7m). Strategic Investment led by Vision Blue Resources Limited, with US$10.1m invested to date

    • Significant incremental operational progress achieved to support increased production and enhanced product mix at existing operation: Test programme with Fraunhofer ICT institute launched on Company's products for electrolyte production

    • Board strengthened with the appointment of Sir Mick Davis, former Xstrata CEO, as Chairman and Peet Nienaber, former head of Xstrata Alloys, as a Non-Executive Director.

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 12, Western Uranium & Vanadium Corp. announced:

Western Uranium & Vanadium provides company updates. Sunday Mine Complex Project Update: Active mining operations have resumed at the Sunday Mine Complex, and the project is already producing strong results. Ore was anticipated to be encountered after 150 feet of underground development; however drilling of the GMG ore body resulted in the location of ore-grade material within thirty feet of the existing mine workings. The ore body is projected to be significantly larger than indicated by the previous limited surface drilling. Development ore is being stockpiled underground. Full production of the GMG ore body can begin with the improvement of market conditions and after development operations are completed within six months.

NB: On August 3, 2021 the Company reported that activities had re-started at the Sunday Mine Complex.

Investors can read the latest company presentation here.

Vanadium developers

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

Neometals 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 September 30, Neometals announced: "Annual report 2021"

You can view the latest investor presentation here.

Location map and site view of the 11km titanium-vanadium trend at the Barrambie Titanium and Vanadium Project in WA

Source: Barrambie Titanium / Vanadium Project - 3D Flythrough (video by Neometals)

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

No vanadium related news for the month.

Catalysts include:

  • 2021 - Possible further off-take and/or JV partner announcements.
  • 2021 - BFS due.

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 September 24, Technology Metals Australia announced: "2021 annual report for the financial year ended 30 June 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] (OTCPK: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 September 30, TNG Ltd. announced: "TNG to progress development of Mount Peake Project with a consolidated and integrated processing facility at the mine site."

On October 26, TNG Ltd. announced:

Pause in Trading. Trading in the securities of the entity will be temporarily paused pending a further announcement.

You can view the latest investor video presentations here.

Silver Elephant Mining Corp. [TSX:ELEF] (OTCQX:SILEF) (100% owned subsidiary Nevada Vanadium LLC)

Silver Elephant Mining Corp. is a Canadian public company listed on the Toronto Stock Exchange. The Company now plans to exit from its non-silver assets (keeping its Bolivia silver assets), such as the Gibellini Black Shale primary vanadium project and the Bisoni Vanadium Project.

On October 14, Silver Elephant announced: "Silver Elephant announces filing of Preliminary Economic Assessment for the Gibellini Vanadium Project, Nevada, USA."

You can view the latest investor presentation here.

Vanadium Resources Limited [ASX:VR8]

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 74% of a globally significant vanadium project, the Steelpoortdrift [SPD] Project, in Gauteng Province, South Africa.

On September 29, Vanadium Resources announced: "Annual report for the year ended 30 June 2021."

On October 11, Vanadium Resources announced: "VR8 secures strategic placement at significant premium." Highlights include:

    • Strategic investment of A$4.6m at $0.104c per share, representing a 64% premium to the 30 day vwap by global South African based and JSE-listed infrastructure development, materials supply and mining services group Raubex Group Ltd [JSE: RBX].

    • Cash position ~A$6.1M: VR8 is fully funded through DFS and up to Final Investment Decision.

    • Mining services agreement to conduct mining operations at Steelpoortdrift entered into at arms-length terms between Vanadium Resources [Pty] Ltd (an associate company of VR8) and Raubex. Agreement underpins confidence in the potential of VR8's mining operations

    • VR8 well positioned to continue seeking interest for off-take and construction finance.

You can view the latest investor presentation here.

King River Resources [ASX:KRR] (formerly King River Copper)

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 October 5, King River Resources announced: "HPA Project - Definitive Feasibility Study Awarded. Como Engineers Awarded Definitive Feasibility Study."

On October 25, King River Resources announced: "Quarterly activities report 30 September 2021."

You can view the latest investor presentation here.

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 October 25, VanadiumCorp Resources Inc. announced:

VanadiumCorp applies for full revocation of cease trade order and announces AGM.

You can view the latest investor presentation here.

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

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 28Mt at 0.525% V2O5 (2010 SRK).

No news for the month.

Investors can read the latest company presentation here.

Graphite miners with potential vanadium projects

  • Syrah Resources [ASX:SYR] (OTCPK:SYAAF) (OTC:SRHYY)
  • Triton Minerals [ASX:TON] [GR:1TG]
  • Battery Minerals [ASX:BAT]
  • NextSource Materials [TSX:NEXT]
  • DNI Metals [TSXV:DNI] [GR:DG7N](OTCPK:DMNKF)

Other listed vanadium juniors

  • BlackRock Metals (Private)
  • Gladiator Resources [ASX:GLA]
  • Golden Deeps [ASX:GED]
  • Intermin Resources [ASX:IRC]
  • Maxtech Ventures [CSE:MVT]
  • New Energy Minerals [ASX: NXE] (formerly Mustang Resources)
  • Pursuit Minerals [ASX:PUR]
  • QEM Limited [ASX:QEM]
  • Sabre Resources [ASX:SBR]
  • Trigon Metals Inc. [TSXV:TM] (OTC:PNTZF)
  • Voyager Metals Inc. [TSXV:VONE] [GR:9VR1] (OTC:VDMRF)
  • Vanadium One Iron [TSXV:VONE]
  • Venus Metals [ASX:VMC]
  • Victory Metals [TSXV:VMX]

VRFB Companies

  • Protean Energy [ASX:POW] [GR:SHE1]
  • Saltbae Capital [TSXV:CUBE] [GR:01X] (OTCPK:CECBF)
  • Invinity Energy Systems (LSE:IES) (OTCPK:IVVGF)

EV metal miners royalties companies

  • Electric Royalties [TSXV:ELEC]

Conclusion

European vanadium pentoxide spot prices were flat in October.

Highlights for the month include:

  • China's 2022 vanadium demand from VRFB forecast to rise and to be flat from steel.
  • Bushveld Minerals vanadium production to ramp from ~3,400 mtV pa to a steady-state run rate of between 5,000 to 5,400 mtV pa by the end of 2022.
  • Largo Resources 2021 production guidance lowered to 11,400 to 11,800 tonnes of V2O5 equivalent from 12,000 to 12,500 tonnes.
  • Western Uranium & Vanadium Sunday Mine Complex active mining operations have resumed. The ore body is projected to be significantly larger than indicated by the previous limited surface drilling.
  • TNG Ltd to progress development of Mount Peake Project with a consolidated and integrated processing facility at the mine site.

As usual, all comments are welcome.

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