JP Morgan Nominees Australia – 3.3%
HSBC Custody Nominees – 2.78%
Southland Snipe SF – 2.42%
Citicorp Nominees – 1.91%
Pinny – 1.82%
Management Ownership – 1.5%
Australian Vanadium Limited (ASX: AVL) is an emerging vanadium producer developing the high-grade Australian Vanadium Project in Western Australia. AVL has a strong technical team which includes expertise in vanadium production. The Company released its Pre-feasibility Study and Maiden Ore Reserve in 2018 and is currently undertaking a Pilot Study and Definitive Feasibility Study. AVL’s vanadium project is based on an industry-standard open pit mine; crushing, milling and beneficiation plant (CMB) and processing plant for final conversion and sale of high quality vanadium pentoxide (V2O5) for use in steel, specialty alloys and energy storage markets.
Vincent Algar, Managing Director
Vincent Algar is a geologist by profession with over 25 years’ experience in the mining industry spanning underground and open cut mining operations, greenfields exploration and project development in Western Australia and Southern Africa. Vincent has significant experience in the management of publicly listed companies, including compliance, marketing and management, development of internal geological and administrative systems, exploration planning and execution, plus project acquisition and deal completion. Since 2015 Vincent has led Australian Vanadium Ltd to develop its high-grade vanadium deposit in Western Australia and was instrumental in the launch of battery-focused subsidiary VSUN Energy and AVL’s vertical integration strategy.
What is your rationale for attending 121 Mining Investment?
AVL is in the development phase and is seeking equity and debt for the project.
What recent news would you like to highlight to investors attending?
4/3/20 Resource Upgrade to 208Mt signifying potential for increased minelife.
16/3/20 Pilot Study results confirming high vanadium recoveries and excellent concentrate quality.
10/2/20 Award of $1.25M grant to undertake research to improve vanadium processing efficiency.
15/1/20 Letter of Intent signed with Chinese vanadium producer Hebei Yanshan Vanadium and Titanium Industry Technology Research.
What are your key goals for the next 3, 6 and 12 months?
Complete a new mine schedule with newly added resource from drilling programme. Continue to progress metallurgical work, heritage and environmental approvals.
Establish funding for the project. Submit environmental approval application for both sites.
Construction of the Australian Vanadium Project.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
COVID-19 is of course a challenge for all companies, but we aim to continue to progress the project through these times and be in the best position to emerge strongly from the current situation.
What do you think makes your company such a compelling investment?
AVL has a combination of a high-grade deposit amenable to processing, with the technical knowledge that will allow the company to extract the most value at the lowest operating cost. With the intention to supply multiple markets and the work of its subsidiary VSUN Energy in growing the vanadium redox flow battery’s presence in the renewable energy market, AVL has many points of difference from its competitors. The project and team align with the operating primary vanadium mines and aim to achieve their successes.
Australian Vanadium is an ASX-listed emerging vanadium producer, developing the high-grade Australian Vanadium Project deposit in Western Australia.
The Australian Vanadium Project consists of a high-grade V-Ti-Fe deposit located 43km south of the mining town of Meekatharra in Western Australia and 740km northeast of Perth. The Project consists of 11 tenements covering approximately 260 sq km that are 100%-owned by AVL. Mining Lease Application M51/878 is currently awaiting approval and covers about 70% of the Mineral Resource, with the balance of the Inferred Mineral Resource located on E51/843.
A Maiden Ore Reserve was released during December 2018 and the Mineral Resource for was updated during March 2020. The total Mineral Resource is 208.2Mt at 0.74% vanadium pentoxide (V2O5) consisting of: a Measured Mineral Resource of 10.1Mt at 1.14% V2O5, an Indicated Mineral Resource of 69.6Mt at 0.72% V2O5, and an Inferred Mineral Resource of 128.5Mt at 0.73% V2O5. The Mineral Resource includes a distinct massive magnetite high-grade zone of 87.9Mt at 1.06% V2O5 consisting of: a Measured Mineral Resource of 10.1Mt at 1.14% V2O5, an Indicated Mineral Resource of 25.1Mt at 1.10% V2O5, and an Inferred Mineral Resource of 52.7Mt at 1.04% V2O5.
During December 2018, AVL released its PFS, which build upon the initial base-case and indicate a project with a well-defined resource base, robust economics and utilising an industry standard, low-risk method of beneficiation and refining to produce a vanadium pentoxide V2O5 flake product. AVL’s vanadium project is based on an industry-standard open pit mine, crushing, milling and beneficiation plant (CMB) and refining plant for final conversion and sale of high-quality vanadium pentoxide (V2O5) for use in steel, specialty alloys and energy storage markets.
Average C1 operating expenses are estimated at US$4.15/lb V2O5 equivalent (±25%), which are competitive with the world’s lowest-quartile producers, with a conservative long-term average V2O5 price assumption of US$8.67/lb used for financial modelling. Capital costs are estimated at approximately US$354 million (±25%), with ungeared post-tax NPV8% of between US$125 million and US$1.41 billion, indicating a robust project.