jcrosemann/iStock via Getty Images
jcrosemann/iStock via Getty Images
Welcome to the Vanadium miners news. March saw vanadium prices surge higher, especially ferrovanadium, mostly due to supply disruptions fear due to the Russia-Ukraine war.
The vanadium producers are now doing very well and the vanadium juniors continue to progress.
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.
Europe Vanadium Pentoxide [V2O5] Flake 98% 1 year chart - Price = USD 12.30/lb (China price not given)
China and Europe Ferrovanadium [FeV] 80% prices - China = USD 54.50/kg, Europe = USD 62.25/kg
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
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.
We think there’s a revolution coming in vanadium redox flow batteries...
On February 22, The White House released: "FACT SHEET: Securing a made in America supply chain for critical minerals."
Note: As of Feb. 2022, vanadium was on the list of U.S critical minerals.
On March 16 Fastmarkets reported: "Demand for some specialty steel raw materials starts to cool after initial 'panic buying'."
On March 17, Phenom Resources Corp. announced:
Phenom sees factors altering vanadium market. Paul Cowley, Company President & CEO states, "We wish to share several current and near-term seismic structural shifts impacting vanadium. Firstly, lithium's success in the EV car battery space is a now a game changer for vanadium's future in the multi-billion/year stationary battery market. With lithium prices rising >500% since Sept 2021, lithium utility scale batteries, once marginally price-competitive to the vanadium utility scale batteries, are no longer. Lithium prices are expected to remain high with the demand in the EV market. This leaves the rapidly growing multi-billion/year stationary battery market virtually to vanadium batteries to fill. Price point was the last slight edge lithium had over vanadium stationary batteries. Vanadium batteries have the superior performance, safety, recycle and longer life benefits."...
On March 18 Fastmarkets reported: "Chinese vanadium prices in downward correction after previous rally."
Ferro-vanadium price corrects but tension remains over sanctions. Ferro-vanadium prices have corrected downward slightly in the past two pricing sessions after a sharp increase that started on February 21, prior to Russia’s invasion of Ukraine, but the market was still wary about potential disruptions.
On March 24 Yahoo Finance reported:
Global vanadium redox battery market to reach $592.4 million by 2026...Similar to other electrochemical energy storage systems, redox flow batteries can also be developed in various different size classes, ranging from few hundred megawatts of power and watt-hours of storage to multi-megawatts and megawatt-hours systems for use as large grid-scale energy storage devices. Redox flow batteries can be effectively utilized for all types of stationary energy storage tasks, though their higher lifetimes result in the lowest levelized cost of energy storage. Currently, there are various types of redox flow batteries that are being evaluated. However, the best known redox flow batteries is the vanadium redox battery. Amid the COVID-19 crisis, the global market for Vanadium Redox Battery estimated at US$237.5 Million in the year 2022 is projected to reach a revised size of US$592.4 Million by 2026, growing at a CAGR of 20.9% over the analysis period...Wind energy and solar photovoltaic sectors are projected to witness over 830 GW and 970 GW increase in capacity by 2025, which is likely to drive the adoption of vanadium redox batteries in the coming years.
On March 25 Fastmarkets reported: "Non-lithium-ion batteries said on course to exceed 10% of energy storage market by 2025."
Glencore is a large vanadium producer, but vanadium production represents only a small portion of their revenue.
On March 16, Glencore announced: "2021 Annual report of Glencore plc."...
Over time, global commodity trade flows will need to adapt to some or all of Russian/Ukrainian supply being unavailable, whether due to infrastructure damage, sanctions or ethical concerns.
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 23, AMG Advanced Metallurgical Group NV announced: "AMG Advanced Metallurgical Group N.V. reports fourth quarter and full year 2021 results." Highlights include:
On March 11, AMG Advanced Metallurgical Group NV announced: "AMG Advanced Metallurgical Group N.V. publishes 2021 annual report."
You can view the latest investor presentation here.
Bushveld is a diversified AIM-listed resources company with a portfolio of vanadium, tin and coal assets in Southern Africa and Madagascar.
On March 7, Bushveld Minerals Limited announced:
Bushveld successfully defends litigation...As announced on 14 July 2021, Garnet Commerce Limited ("Garnet") issued a claim form in the English High court against VRFB Holdings Limited ("VRFB-H") and Enerox Holdings Limited ("EHL")...
On March 25, Bushveld Minerals Limited announced:
Update on the VRFB Holdings Limited Investment by Mustang Energy Plc ("Mustang"). Mustang has negotiated terms in principle and subject to contract with the holders of the CLNs, to provide for the extension of the Maturity Date of the CLNs to facilitate the proposed readmission of Mustang's shares to trading on the Standard List of the London Stock Exchange. The terms have been documented and relevant documents are currently in the process of being executed by all parties. To allow time for execution to be completed, Bushveld and Mustang have agreed to extend the notice period for Mustang to issue notice to Bushveld in respect of the backstop (as announced on 19 January 2022) until Monday, 28 March 2022.
You can view the latest investor presentation here.
Largo Inc. is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil as well as a producer of VRFBs.
On March 16, Largo Inc. announced:
Largo reports 2021 net income of $22.6 million and strong financial position; focused on “Two-Pillar” s trategy as a leading vanadium supplier benefiting from strong vanadium fundamentals with an e merging clean energy division.
You can view the latest investor presentation here.
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.
On March 17, Energy Fuels announced:
Energy Fuels announces 2021 results, including net profits, strong cash position, and market-leading U.S. Uranium, rare earth and vanadium position.
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 March 2, Ferro-Alloy Resources announced:
Operations update. The Board of FAR is deeply shocked by the recent invasion of Ukraine and is deeply concerned about the tragic consequences unfolding there. Whilst the situation in Ukraine remains complex and changeable , the Company’s operations in Kazakhstan are currently unaffected with raw materials and supplies being delivered to site as normal.
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.
No news for the month. You can read the February 14, 2022 Company update here.
Investors can read the latest company presentation here.
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.
Neometals admission to London Stock Exchange. Innovative project development company, Neometals Ltd is pleased to advise that further to its announcement on 14 February 2022, the Company confirms the admission of its entire issued share capital to trading on the AIM market of the London Stock Exchange plc...its Ordinary Shares on AIM will commence, at 8:00 a.m. today under the TIDM "NMT".
On March 10, Neometals announced: "Half-year report for the 6 months ended 31 December 2021."
On March 28, Neometals announced: "Neometals invests in US battery start-up, Tyfast."
You can view the latest investor presentation here.
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].
On February 25, Australian Vanadium announced: "Joint co-operation agreement signed with Mid West Ports Authority for Geraldton Port."
On March 16, Australian Vanadium announced: "AVL awarded $49 million Federal Government manufacturing collaboration grant."
On March 17, Australian Vanadium announced: "Letter of Intent for iron titanium coproduct offtake sales."
You can view the latest investor presentation here, or read "Australian Vanadium Managing Director Vincent Algar Talks With Matt Bohlsen Of Trend Investing."
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 March 15, Technology Metals Australia announced: "MTMP integration study progressing to schedule."
On March 15, Technology Metals Australia announced:
Interim financial report 31 December 2021. During the reporting period, the Company advanced work on the Yarrabubba Project (Yarrabubba). Whilst activities at the beginning of the reporting period focused on the development of Yarrabubba as a standalone iron-vanadium concentrate project, analysis during the period identified the potential benefits of integrating Yarrabubba feedstock early in the life of the MTMP to complement and further enhance the economics of the Gabanintha high purity vanadium project [GVP]. Yarrabubba’s higher vanadium in concentrate grades (compared to Gabanintha), along with scope to generate a titanium by-product, indicate the potential to reduce operating costs in the early years of the project and materially increase the projects operating life, lowering the implementation risk of the full MTMP development. Analysis showed that the ‘vanadium’ product strategy for Yarrabubba is expected to enhance processing efficiencies and produce a better economic outcome than the ‘iron-vanadium’ strategy. Importantly, the strategic review highlighted the opportunity to bring forward the delivery of vanadium production for the integrated MTMP, supporting growth in vanadium consumption and the rapidly emerging Vanadium Redox Flow Battery [VRFB] industry. The integration strategy to combine Yarrabubba and the GVP and advancement of the development of the MTMP ore is supported by new cornerstone investor, RCF VII, which contributed A$13.5 million towards a A$20 million capital raise during the period.
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 March 3, TNG Ltd. announced:
TNG advances strategy for green energy to enhance Mount Peake Project. TNG’s green energy strategy encompasses both vanadium redox flow batteries and green hydrogen.
On March 14, TNG Ltd. announced: "Half-year financial report 31 December 2021."
On March 18, TNG Ltd. announced:
TNG agrees revised project execution strategy with SMS Group for delivery of the Mount Peake Project. Paves way for construction to be undertaken by Australian-based companies .
You can view the latest investor video presentations here.
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 March 7, Vanadium Resources Limited announced: "DFS update: trial mining and bulk sampling progress."
On March 10, Vanadium Resources Limited announced: "Financial report for the half-year ended 31 December 2021."
On March 24, Vanadium Resources Limited announced: "Completed bulk sampling and pilot test work commencement."
You can view the latest investor presentation here.
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 March 10, King River Resources announced:
Half year financial report 31 December 2021...The consolidated entity recorded an operating loss after income tax of $1,302,893 for the half year ended 31 December 2021 (2020: $355,568 loss). There was no dividend declared or paid during the half year.
On March 16, King River Resources announced: "Project status update."
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 March 11, Vanadiumcorp Resources Inc. announced:
VanadiumCorp appoints Paul McGuigan as Interim CEO. VanadiumCorp Resource Inc. reports today that it has removed Adriaan Bakker as the Company’s CEO and President effective immediately. Mr. Bakker will remain a director of VanadiumCorp. The board has appointed, Paul McGuigan P.Geo, as Interim CEO. Mr. McGuigan is a Professional Geoscientist registered with the Association of Engineers and Geoscientists of the Province of BC, with 45 years of international experience in mineral exploration, deposit evaluation, mine operations, and corporate governance.
On March 24, Vanadiumcorp Resources Inc. announced:
VanadiumCorp announces financing and share consolidation. VanadiumCorp Resource Inc. plans to arrange a debenture financing to raise up to a maximum of $2 million (the “Debt Financing”).
You can view the latest investor presentation here.
Phenom Resources Corp. [TSXV:PHNM] (OTCQX:PHNMF) (formerly First Vanadium Corp.)
The Carlin Gold-Vanadium Property 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).
On March 24, Phenom Resources Corp. announced:
Phenom Resources provides additional vanadium intercepts on its flagship Nevada Project. Paul Cowley, President & CEO of the Company states, "These new vanadium intercepts are noteworthy reflecting multiple opportunities to expand the vanadium mineralization northernly, easterly and at depth. From the shallow intercepts, hole RC20-05 returned a >50% thicker intercept to its nearest previous hole, and hole RC21-13A, 100m north of the vanadium resource outer limits, returned 24.4m of 0.71% V2O5. Secondly, it appears from recent drilling that vanadium thicknesses and grades increase closer to the bounding north/south graben fault shown in the figure below; an area that had not been specifically targeted in the past and remains underexplored. Thirdly, the drilling encountered multiple deeper vanadium intercepts that were completely unexpected, reflecting multiple layers of vanadium mineralization."
Investors can read the latest company presentation here.
European vanadium pentoxide and China & Europe ferrovanadium spot prices were significantly higher in March on supply disruptions fear due to the Russia-Ukraine war.
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Disclosure: I/we have a beneficial long position in the shares of AMG ADVANCED METALLURGICAL GROUP NV [AMS:AMG], LARGO RESOURCES [TSX:LGO], NEOMETALS [ASX:NMT], AUSTRALIAN VANADIUM [ASX:AVL], SYRAH RESOURCES [ASX:SYR], TRITON MINERALS [ASX:TON] either through stock ownership, options, or other derivatives. 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.