Australian Vanadium

VINCENT ALGAR

MANAGING DIRECTOR

(ASX:AVL)

◾ Company Name: Australian Vanadium ◾ Company ASX code: AVL ◾ Key commodities: Vanadium ◾ Key Personnel: Vincent Algar, Managing Director ◾ Locations: Western Australia ◾ Market Cap as of 15/07/22: $149.75M ◾ Share price range over 12 months as of 15/07/22: $0.105 - $0.018 ◾ Company Website: australianvanadium.com.au

COMPANY PROFILE

Hailing from Western Australia, Australian Vanadium Limited (ASX:AVL) is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain, from resource all the way through to steel and energy storage opportunities.

AVL is advancing the development of its world-class Australian Vanadium Project at Gabanintha, near Meekatharra in the desert of Western Australia, close by a number of other mineral explorers taking advantage of the region’s rich deposits.

The Australian Vanadium Project is currently one of the most advanced vanadium projects being developed globally, with 239Mt at 0.73% vanadium pentoxide (V2O5), containing a highgrade zone of 95.6Mt at 1.07% V2O5.

VSUN Energy is AVL’s 100% owned renewable energy and energy storage subsidiary which is focused on developing the Australian market for vanadium redox flow batteries (VRFBs) for long duration energy storage.

Set up in 2016, VSUN Energy has rapidly made a name for itself on the world stage through its work and expertise with VRFBs – and together with AVL, it provides the group with a vertical integration strategy.

That sees AVL processing vanadium to high purity, manufacturing vanadium electrolyte and then working with VSUN Energy as it develops projects based on renewable energy generation and VRFB energy storage.

In addition to the $49 million grant awarded in March 2022, in July 2021 AVL was awarded a $3.69 million Federal Government manufacturing grant under the Modern Manufacturing Initiative Resources Technology and Critical Minerals Processing National Manufacturing Priority roadmap.

Part of the matched funding is allocated to development of a standalone power system (SPS) that will be installed at the Nova Nickel Operation belonging to IGO Limited (ASX:IGO) in 2022, where the system will supply power independent to the electricity grid. SPS typically comprise a combination of solar, wind and battery, with backup generation from diesel or gas if needed.

The remainder of the grant will be used to finalise the high purity processing circuit for the Australian Vanadium Project, build and operate a commercial vanadium electrolyte manufacturing plant producing 33MWh per annum and manufacture a prototype of a residential VRFB.

The SPS project with IGO marks an exciting time for AVL, according to company Managing Director Vincent Algar, and for the entire industry in general as it forges towards its decarbonisation goals.

“The installation of an SPS based on vanadium technology for pumping applications enables diesel to be almost entirely eliminated, helping reduce overall carbon emissions and providing reliable green power,” Algar said recently.

There are several key reasons why AVL is getting right behind its VRFB tech, including its inherent safety, high cycle life of the unit and its sustainable nature.

Additionally, AVL’s tech is tolerant of high heat conditions, such as the fearsome WA desert, while the flexibility will see it deployed across a wide range of applications in the years ahead.

Algar’s pedigree in the mining industry stands him in good stead to lead AVL. With over 25 years’ experience in the mining industry, he also has significant experience in the management of publicly listed companies.

Technical Director Daniel Harris and Chief Operating Officer Todd Richardson also bring decades of experience to the table, with both men boasting direct experience with vanadium in Australia and overseas.

KEY INVESTMENT HIGHLIGHTS

APRIL 6, 2022: Bankable Feasibility Study sees pre-tax NPV7.5 of A$833M and equity IRR 20.6%. MARCH 16, 2022: Awarded $49 Million Australian Government Grant. NOVEMBER 1, 2021: Total Mineral Resource updated to 239Mt at 0.73% V2O5.