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Vanadium Miners News For The Month Of July 2018
Highlights:
Summary
Vanadium spot prices were up again significantly in July.
Vanadium market news - Navigant - "VRB to be one of the fastest growing electrochemical storage technology sets over the next decade."
Vanadium company news - Record vanadium prices are boosting profits and sentiment for the vanadium companies.
This idea was discussed in more depth with members of my private investing community, Trend Investing.
Welcome to the Vanadium miners news. July saw vanadium prices continue their spectacular rise. The vanadium sector is hot right now.
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. China has an enormous amount of solar and wind capacity that blend perfectly with this type of energy storage. The type of vanadium used in energy storage applications is vanadium pentoxide.
Vanadium oxide spot price history
China Vanadium Pentoxide [V2O5] Flake 98% Price - USD 18.80/lb
Source:
Vanadiumprice.com
Vanadium redox flow battery [VRB] schematic
Source
Vanadium demand versus supply
Demand
- Steel production (used to harden steel). Recent China regulations requiring stronger steel rebar, hence more vanadium required.
- Vanadium redox flow batteries (used mostly for large scale energy storage in China).
Supply
- Most supply currently comes from China, Russia, South Africa, and Brazil.
- Supply has been decreasing the past few years for several reasons.
Vanadium demand forecast to outstrip supply 2018-2025
Source: Largo Resources Investor presentation
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."
Note: Robert Friedland is a chairman of Beijing company Pu Neng. Last November 2017
Pu Neng was awarded a contract to build the largest vanadium flow battery in China. That is the 40MWh project referred to above, that will be followed by a larger 100MW 500MWh energy storage project in Hubei Province.
On July 3 Phys.org
reported: "Scientists create a vanadium flow battery model. Skolkovo Institute of Science and Technology, a group of scientists from the Skolkovo Institute of Science and Technology (Skoltech), Lomonosov Moscow State University[(MSU], and the Moscow Institute of Physics and Technology [MIPT], led by Skoltech Professor Aldo Bischi, has developed a mathematical model of the electrochemical cell of the vanadium flow battery. The model describes the battery's dynamic behavior, including the flow of vanadium ions through the cell membrane. The results of the study were published in the journal Applied Energy."
On July 19 Energy Storage
reported: "Redox flow energy storage deployed on both trial and ‘proven technology’ basis. Redox flow energy storage systems, earmarked by Navigant Research to be one of the fastest growing electrochemical storage technology sets over the next decade, are being deployed in recent or upcoming projects by Cellcube Energy Storage Systems and Redflow."
On July 21 The Economist
reported: "Vanadium is the latest beneficiary of the battery craze. OPEN a toolbox, pull out a spanner and you may be holding a bit of the answer to global warming: vanadium, a metal named after Vanadis, the Scandinavian goddess of beauty. Used mostly in alloys to strengthen steel, its appearance may not live up to the romance of its name. Yet vanadium could become a vital ingredient in large clean-energy batteries, in which case it will shine a lot brighter. Its price has already been rising faster than cobalt, copper and nickel, all of which are used in lithium-ion batteries (see chart). The main reason for the run-up is prosaic. About nine-tenths of the world’s vanadium is used to harden steel; China has tightened standards on the strength of rebar to make buildings more earthquake-proof. Mark Smith, boss of Largo Resources, which mines high-purity vanadium in Brazil, says this alone should increase demand for the metal by up to 15,000 tonnes in 2018-19. Last year total production was 83,000 tonnes."
Vanadium miner news
Australian Vanadium [ASX:AVL] [GR:JT71] (OTC:ATVVF)
Australian Vanadium is an emerging vanadium producer focused on the **anintha deposit in Western Australia.
On July 5 Australian Vanadium
announced: "Resource update for **anintha vanadium deposit including cobalt, nickel and copper." Highlights include:
- "Total Mineral Resource revised to 175.5Mt at 0.77% vanadium pentoxide (V2O5) consisting of: Measured Mineral Resource of 10.1Mt at 1.11% V2O5, indicated Mineral Resource of 24.0Mt at 0.63% V2O5, and inferred Mineral Resource of 141.4Mt at 0.77% V2O5.
- The revised **anintha Mineral Resource includes a distinct massive magnetite high-grade zone of 93.6 Mt at 1.00% V2O5 consisting of: Measured Mineral Resource of 10.1Mt at 1.11% V2O5, indicated Mineral Resource of 4.9Mt at 1.09% V2O5, and inferred Mineral Resource of 78.6Mt at 0.98% V2O5.
- The Mineral Resource now includes an estimation of cobalt, nickel and copper: Initial Inferred Mineral Resource is 12.5 Mt at 206 ppm Co, 659ppm Ni and 222 ppm Cu.
- PFS base case nearing completion."
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 **anintha Vanadium Project located 40km south east of Meekatharra in the mid-west region of Western Australia.
On July 4 Technology Metals
announced: "Strategic tenement acquisition to boost **anintha." Highlights include:
- Acquisition of strategic tenement adjacent to proposed main pit at the northern block.
- Enhances optionality and flexibility with regard to development of **anintha.
- Compliments the robust findings of the recently completed **anintha pre-feasibility study.
- Definitive feasibility study planning well progressed."
On July 12 Technology Metals
announced: "Technology Metals Australia leveraged to growth of vanadium flow battery markets. Technology Metals Australia executive director Ian Prentice discusses with Proactive Investors, key developments in the vanadium market, and progress with the company's flagship **anintha Vanadium Project in Western Australia."
On July 12 Technology Metals
announced: "Technology Metals Australia’s new tenement adds to billion-dollar vanadium potential. Technology Metals Australia Ltd has acquired additional tenure adjacent to the Northern Block of tenements at its 100%-owned **anintha Vanadium Project in Western Australia. The company’s recently completed pre-feasibility study [PFS] was based on the Northern Block indicated resource of 21.6 million tonnes at 0.9% vanadium pentoxide (V2O5)."
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."
Conclusion
The vanadium price continues its meteoric rise, hence the vanadium sector is definitely hot right now. Meanwhile the vanadium miners are progressing well, boosted by strong interest in the sector.
My highlights for the month include:
- The Economist - Vanadium is the latest beneficiary of the battery craze.
- Largo Resources achieves a new quarterly revenue record.
- Bushveld Minerals completes 2nd phase of Vametco expansion.
- Resource update for **anintha vanadium deposit. Mineral Resource now includes an estimation of cobalt, nickel and copper.
- TMT state: "Technology Metals Australia’s new tenement adds to billion-dollar vanadium potential."
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].
https://seekingalpha.com/article/4191847-vanadium-miners-news-month-july-2018
