Australian Vanadium Limited (ASX: AVL) is an emerging vanadium producer focused on the Gabanintha deposit south of Meekatharra in Western Australia. Vanadium is traditionally used to strengthen steel, but there is increased use in the energy storage market. Growth is twofold in this area, with energy storage based on an electrolyte solution and use of vanadium in lithium battery cathodes. Current global demand for vanadium is outstripping supply with China driving both reduction of supply and increase in demand. AVL is currently working on a detailed PFS which builds on the recently reported base case showing a Net Present Value (NPV) of US$1.1B using US$13/lb Life of Mine V2O5 commodity price forecast. Since release the commodity price has reached >US$24/lb.
Plans and Latest Developments:
AVL is currently undertaking a detailed Pre-Feasibility Study with a select group of highly skilled consultants and a vast amount of in-house vanadium knowledge. A base case study has recently been released and the final study will be released later this year. The Company anticipates that work on the Definitive Feasibility Study will begin on successful conclusion of the PFS.
Whu should investors invest in you?
AVL has a high-grade vanadium deposit in the safe mining jurisdiction of Western Australia. The project has a declared Mineral Resource comprising 175.5Mt at 0.77% Vanadium Pentoxide (V2O5), which includes a distinct and globally significant, massive magnetite high-grade zone of 93.6 Mt at 1% V2O5. With vanadium in global supply deficit and long-term average prices supporting development, the Company has a team of vanadium experts progressing the project, with a view to being the world’s next high-grade vanadium mine. To ensure longevity for the project, the Company launched subsidiary VSUN Energy, which is focused on growing the vanadium redox flow battery market. With vanadium electrolyte production expertise in-house, AVL is positioned to produce products for both the steel and battery markets.
Countries of Operation:
Board of Directors:
- Brenton Lewis – Chair
- Vincent Algar – Managing Director
- Leslie Ingraham – Executive Director
- Daniel Harris – Technical Director
- Todd Richardson – Development Manager