Vanadium Miners News For The Month Of February 2022

Summary

  • Europe vanadium pentoxide spot prices were higher the past 30 days. China and Europe Ferrovanadium prices were higher.
  • Vanadium market news - Ferro-alloys inquiries jump amid Russia-Ukraine tensions with small gains for ferro-chrome prices.
  • Vanadium company news - AMG boosts 2022 EBITDA guidance. Largo announces new physical vanadium holding company, Largo Physical Vanadium Corp.
  • Western Uranium & Vanadium production continues with high grade vanadium. Neometals prepares mixed gravity concentrate sample for Jiuxing commercial smelting trials in China.
  • 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 chemical element.

Evgeny Gromov/iStock via Getty Images

Welcome to Vanadium miners news. February saw higher vanadium prices and a slower month of news. One of the main reasons for higher prices is that Russia is the second largest global producer of vanadium, and sanctions may reduce global supply.

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 10.60/lb (China price not given)

Europe Vanadium Pentoxide [V2O5] Flake 98% 1 year chart

Vandiumprice.com

China and Europe Ferrovanadium [FeV] 80% prices - China = USD 42.50/kg, Europe = USD 42.75/kg

China and Europe Ferrovanadium [FeV] 80% prices

Vanadiumprice.com

Vanadium demand versus supply

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.

Woodmac forecasts high growth ahead for solar, wind and energy storage

Woodmac forecasts high growth ahead for solar, wind and energy storage

Woodmac

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... 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 February 1 S&P Global reported:

INTERVIEW: ERG's Sobotka says metals prices on rising trend until recycling takes off in 15 years. Mainly primary metals to be used for 10-15 years. Recycling to kick in when initial EV wave completes lifespan. Aluminum price could see 30+-year high in 2022... Energy transition is a driving trend "with all the ingredients of a new supercycle," according to Sobotka. Annual investments in decarbonization of $750 billion-$1 trillion globally are foreseen in coming decades in a bid to keep to Paris Agreement 1.5 degree Centigrade global warming targets. This will boost demand for copper, aluminum, cobalt and other battery metals for renewable energy, transport and construction in "the biggest purchase order in the history of the mining industry: the amounts are just staggering," he said.

On February 11 Fastmarkets reported: "Chinese vanadium prices boosted by bullish European market."

On February 22, 2022 Fastmarkets reported:

Ferro-alloys inquiries jump amid Russia-Ukraine tensions with small gains for ferro-chrome prices. Ferro-alloy prices showed the first signs of reacting to tensions between Russia and Ukraine after an escalation on Tuesday February 22 that prompted the UK government to impose sanctions on five Russian banks and three oligarchs. Ferro-chrome and ferro-vanadium market participants reported an increase in inquiries for material, while ferro-chrome prices marginally edged up... One high carbon ferro-chrome seller reported that he is starting to see "panic" among buyers while the market awaits the impact of newly-imposed sanctions from the west.

Note: The top 4 countries producing vanadium in 2019 were China (40,000MT), Russia (18,000MT), South Africa (8,000MT), and Brazil (7,000MT).

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.

On February 2, Glencore announced: "Full year 2021 production report." No mention of vanadium or ferrovanadium.

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 February 1, AMG Advanced Metallurgical Group NV announced:

AMG Advanced Metallurgical Group N.V. increases EBITDA guidance for 2022. AMG Advanced Metallurgical Group N.V. is pleased to increase its EBITDA guidance for 2022. In December 2021 AMG increased its EBITDA guidance for the full year 2022 to a range of between $175 million and $200 million. Since then, lithium market conditions have significantly improved. As a result, AMG is increasing its EBITDA guidance for 2022 to $225 million or higher.

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.

No significant news for the month.

You can view the latest investor presentation here.

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

Largo Inc. is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil as well as a producer of VRFBs.

On February 3, Largo Inc. announced: "Largo announces proposed qualifying transaction for new physical vanadium holding company, Largo Physical Vanadium Corp.." Highlights include:

  • "...Largo Physical Vanadium Corp. ("LPV"), will invest and hold substantially all of its assets in physical vanadium products and provide direct investment exposure to vanadium, a new-economy commodity aligned with the green energy transition with use cases that include vanadium redox flow batteries ("VRFB") and green steel applications.
  • Upon completion of the proposed qualifying transaction, LPV's physical vanadium holdings would be used, in part, in long duration VRFBs. As vanadium electrolyte does not degrade when used in VRFBs, the batteries will act as secure safe-keeping for LPV's physical vanadium holdings. Storing vanadium in VRFBs would provide the opportunity of generating rental revenue to offset part of the administrative costs of LPV...
  • LPV presents an opportunity for Largo to monetize its vanadium used in its VRFBs in addition to the revenue it expects to recognize from the sale of VCHARGE battery components to prospective customers. The substantial benefit of LPV to Largo is expected to arrive following the sale additional VCHARGE batteries to prospective VRFB customers."

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 small vanadium producer.

No vanadium 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."

No news for the month.

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 February 14, Western Uranium & Vanadium Corp. announced:

Western Uranium & VanadiumCorp. provides company updates... Because of the project's success, the mining contractor began probing and logging the 10-ton load hauls. On 25 individual days from December to early February, the mining contractor probed and logged each of the 200 load hauls five times; the 2,000 tons of new production was moved into four separate underground stockpiles. The mining contractor has reported a uranium grade of 1% (0.9962) and a vanadium grade, by the 1:6 historic ratio, of about 6%. This translates into uranium/vanadium stockpile quantities of 39,800 lbs of uranium and 239,000 lbs of vanadium. At current market prices, the post-processing recovery value is over $3.5 million. (1)(2) Ore production is continuing and an additional mining operations update is expected in about 2 weeks.

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 January 28, Neometals announced: "Quarterly activities report for the quarter ended 31 December 2021." Highlights include:

Corporate

  • "Cash balance A$72.8 million, receivables and investments of A$47.9 million and no debt.
  • David Reed retired from Board and Chris Reed's contract extended until 2024.
  • Ongoing preparations for Neometals' dual listing on AIM market of the London Stock Exchange in MarQ 22."

Downstream - Materials Processing

Vanadium Recovery Project ("VRP") (earning into 50:50 JV with Critical Metals Ltd)

  • "Engineering process data prepared for SSAB project [VRP1] feasibility study which has been awarded to Nordic focused engineering firm Sweco Industry Oy.
  • Offtake, environmental permitting, CO2 capture and additional project business development activities advanced."

Upstream - Mineral Extraction

Barrambie Titanium and Vanadium Project ("Barrambie") [100% NMT]

  • "Preparation of Barrambie mixed gravity concentrate sample for Jiuxing commercial smelting trials in China continued in parallel with Pre-feasibility study targeted for MarQ 22 completion.
  • Leading mining service providers progressing due diligence to provide "Build-Own-Operate" proposals for the development of Barrambie on a capital-light basis with Australian mining and beneficiation operation coupled to Chinese refining activities.
  • Ongoing evaluation of strategic options to deliver Barrambie value to shareholders."

You can view the latest investor presentation here.

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 news for the month.

Catalysts include:

  • 2022 - BFS due.
  • 2022 - Possible further off-take and/or JV partner announcements.

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 January 31, Technology Metals Australia announced: "Quarterly activities report & appendix 5b for the quarter ending 31 December 2021." Highlights include:

  • "Yarrabubba Mineral Resource estimate grew by 32% to 36.6Mt @0.8% V2O5. Indicated component of the MRE increased by 110% to 20.2% @ 0.9% V2O5.
  • GlobalMeasuredandIndicatedMineralResource1estimate increased to 50.2Mt @ 0.9% V2O5- expected to support a project life beyond 25 years.
  • Yarrabubba Integration Study progressed, assessing combination of Yarrabubba and Gabanintha as a single integrated operation. 120kgofmagneticconcentratesenttokilnvendorin Pennsylvania for metallurgical testwork. Open pit mine scheduling to optimise the integration of Yarrabubba and deliver an updated Ore Reserve.
  • Downstream testwork on calcine from the Gabanintha pilot kiln work confirms +99.5% purity vanadium pentoxide and process efficiency improvements.
  • Discussions with offtake and downstream vanadium electrolyte / VRFB partners are progressing. LE System MOU expanded to support development of Australia's first fully integrated vanadium electrolyte plant."

Corporate

  • "Tranche 2 of the $20 million Placement ($6.4 million) completed in November.
  • As at 31 December 2021, the Company had cash of $21.7 million."

You can view the latest investor presentation here.

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 February 14, TNG Ltd. announced: "Mount Peake Project: Development update." Highlights include:

  • "TNG continues to advance engineering, permitting, development planning and commercial work streams for its flagship 100%-owned critical and battery minerals project, the Mount Peake Vanadium-Titanium-Iron Project ("Mount Peake Project" or "Project"), in the Northern Territory.
  • Work undertaken by Clough Projects (Clough) is progressing Stage 2 of the design and value engineering for the integrated mining and processing operation at the Mount Peake mine site ("Mine Site"), together with TNG's Project Team and SMS group.
  • The value engineering and design stage is progressing on schedule and is expected to be completed by Clough by the second quarter of 2022...
  • Commodity Markets: Global demand for titanium dioxide and vanadium pentoxide continue to be strong, with market prices expected to increase during the year."

You can view the latest investor video presentations 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 January 27, Vanadium Resources Limited announced: "Activities report - December quarter 2021." Highlights include:

  • "VR8 secures and completes strategic placement at $0.104c with JSE listed Raubex Group Ltd, which is a South African infrastructure development, mining services and materials supply group. Placement was done at significant premium in return for arms-length mining services agreement. Cash raised provides full funding through DFS up to final investment decision.
  • DFS design and various in-depth studies at final stage.
  • ESG technology is being developed completely independent of VR8's flagship Salt Roast Process and all Intellectual Property [IP] has been transferred into newly registered JV Company [TCM-VR]."

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 February 21, King River Resources announced: "King River Resources receives R&D Tax rebate."

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.

No news for the month.

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] (OTCPK:VDMRF)
  • 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 higher in February and are now back above US$10/lb. Ferrovanadium prices also increased. Given Russia is the second largest global producer of vanadium, the Russia-Ukraine conflict has pushed vanadium prices higher on supply concerns.

Highlights for the month include:

  • ERG's Sobotka says metals prices on rising trend until recycling takes off in 15 years. Energy transition is a driving trend "with all the ingredients of a new supercycle".
  • Chinese vanadium prices boosted by bullish European market.
  • Ferro-alloys inquiries jump amid Russia-Ukraine tensions with small gains for ferro-chrome prices.
  • AMG Advanced Metallurgical Group N.V. increases EBITDA guidance for 2022. Boosted by strong lithium and vanadium prices.
  • Largo announces new physical vanadium holding company, Largo Physical Vanadium Corp..
  • Western Uranium & Vanadium production continues with the mining contract or reporting a uranium grade of 1% [0.9962] and a vanadium grade, by the 1:6 historic ratio, of about 6%.
  • Neometals' dual listing on AIM market of the LSE in MarQ 22. Barrambie Titanium and Vanadium Project preparation of mixed gravity concentrate sample for Jiuxing commercial smelting trials in China continued in parallel with PFS targeted for MarQ 22 completion.
  • TNG's Mount Peake Vanadium-Titanium-Iron Project is progressing well.

As usual, all comments are welcome.

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