Vanadium. THE Green Metal

Transcription

1 Vanadium THE Green Metal 1

2 Vanadium Reserves 2

3 World Vanadium Reserves Country Reserves (000 MT Vanadium) United States 45 Australia Brazil China 1,800 N/A 5,100 Russia 5,000 South Africa 3,500 Other Countries NA World Total 14,000 (Rounded) 3

4 Vanadium Production 4

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6 V Production by Country % 1% 2% 1% 3% 7% 12% 8% 10% 56% China Russia South Africa North America Europe Japan Korea Taiwan India Brazil 6

7 Vanadium Production 2015 by Raw Material Type 11% 18% Coproduct Steel Slag Primary V Ore Secondary 71% 7

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9 Metric Tons V per Year Vanadium Production % CAGR

10 Vanadium Production by Raw Material source Coproduct Slag Primary Ore Secondary Materials 10

11 Fsct 2017 Fcst 2018 Fcst 2019 Fcst 2020 Fcst MTV/yr Vanadium Production Assumes: Supply growth 4,000 MTV/yr. - restart of Chinese stone coal mines 5,000 MTV/yr. - restart and startup of Windimurra 3,000 MTV/yr. - incremental increased production at current operations - 11

12 Vanadium Consumption 12

13 V Consumption by Region % 8% 17% 6% 12% 6% Europe North America Japan China CIS India Other 48% 13

14 KgV/MT Steel 0,10 0,09 0,08 Specific Vanadium Consumption Rates ,094 0,075 0,07 0,06 0,05 0,057 0,055 0,054 0,051 0,04 0,039 0,035 0,03 0,02 0,01 0,00 North America Europe World Average China CIS Japan Other India 14

15 Metric Tons V per Year Vanadium Consumption 2001 to CAGR 6.1%

16 3,00 2,50 2,00 Steel Production and Vanadium Consumption Steel Production 4.6% CAGR Vanadium Consumption 6.1% CAGR Steel Production 4.6% CAGR 1,50 1,00 0, Steel Production Vanadium Consumption 16

17 Kg V permt Steel 0,065 World Specific Vanadium Consumption Rate CAGR 1.4% CAGR 4.4% 0,060 0,055 0,050 0,045 0,040 17

18 12,0% Annual Change in Global Specific Vanadium Consumption Rates 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% ,0% -6,0% Change in Specific Consumption 3 Moy. mobile sur pér. (Change in Specific Consumption) 18

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20 % of Total Steel Produced 14% 12% Vanadium Steel Market Share Assumes average vandium content in vanadium steel 0.05% 10% 8% 6% 4% 2% 0% 20

21 déc.-14 janv.-15 févr.-15 mars-15 avr.-15 mai-15 juin-15 juil.-15 août-15 sept.-15 oct.-15 nov.-15 déc.-15 janv.-16 févr.-16 mars-16 avr.-16 mai-16 juin-16 juil.-16 août-16 sept.-16 Cumulative Vanadium Consumed MTV Grid Level Vanadium Redox Battery Consumption of Vanadium

22 The 65-kilowatt, 5-seater G4e s high energy-density lithium-ion batteries give it a 200km range from a charge (more than double the previous R1e s range) and using a quick-charger it can be topped up to 80% in only 15 minutes. 22

23 Fsct 2017 Fcst 2018 Fcst 2019 Fcst 2020 Fcst MTV/yr 35,000 Vanadium Consumption in Energy Storage 30,000 25,000 20,000 15,000 10,000 5,000 - VRB Li Ion 23

24 Fsct 2017 Fcst 2018 Fcst 2019 Fcst 2020 Fcst MTV/yr Assumes: Demand growth in traditional markets 6%CAGR Vanadium Production & Consumption Steel/Ti/Chemicals VRB Li Ion 24

25 Vanadium Supply/Demand History 25

26 Metric Tons V per Year Vanadium Production and Consumption 2001 to Production Consumption 26

27 Cumulative Inventory Change (Months of Consumption) 4,5 Cumulative Vanadium Inventory Change vs V2O5 Price $25,00 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 - $20,00 $15,00 $10,00 $5,00 V2O5 Price (US$/pound V2O5) -0, ,0 $- Cumulative Inventory change Metal Bulletin V2O5 Price 27

28 Vanadium Cash Cost of Production 28

29 Production Capacity MTV per Year Current Market Price Vanadium Industry Cost Curve 2016 Current market $2,00 $3,00 $4,00 $5,00 $6,00 $7,00 $8,00 V2O5 Production Cash Cost (US$/pound V2O5) 29

30 Vanadium Market Projection 30

31 Fsct 2017 Fcst 2018 Fcst 2019 Fcst 2020 Fcst MTV/yr Vanadium Production & Consumption Assumes: Demand growth in traditional markets 6%CAGR Supply growth of 12,000 MTV/yr with restart of Chinese stone coal mines Steel/Ti/Chemicals VRB Li Ion Production 31

32 US$/Pound V2O5 $25.00 $20.00 $15.00 Annual V2O5 Published Prices Actual Inflated Mean $ 3.47 $ 6.83 Median $ 2.46 $ 6.68 High $ (2005) $ (2005) Low $ 1.15 (1968) $ 2.13 (2002) $10.00 $5.00 $- Source: Metal Bulletin Actual Inflated to 2015 US$ 32

33 Conclusions 33

34 Consumption & Production Demand for vanadium in traditional applications is projected to grow at a CAGR of 6% per year through 2020 as a result of moderating growth rates in global steel production and ongoing substitution of C-Mn steel with vanadium bearing HSLA steels The liquidation of Highveld Steel in South Africa has fundamentally changed the vanadium market balance. Current demand is ahead of production and global inventory levels are decreasing. Recently vanadium prices have begun to react to the tightening market conditions and prices are moving back towards historical norms after two years of very weak prices. There is the possibility of a near term vanadium price spike. Energy storage applications have the potential to increase global vanadium consumption by more than 27,000 MTV per year or more than 30% of the current market by In the near term there are limited potential new sources for vanadium and the existing supply base is threatened by the Chinese steel industry instability at this time Longer term new vanadium primary mines will be necessary to supply growing vanadium market needs 34

35 Vanadium THE Green Metal The use of V HSLA steels in the construction of infrastructure and industrial capacity allows for the creation of economic opportunity for 2/3 of the worlds population living in underdeveloped regions with a minimal impact on the global environment. Vanadium is used broadly in pollution control catalysts for the elimination of SOx and NOx from power station and industrial gas emissions. Vanadium in becoming an important contributor to effective, efficient solutions to grid level and mobility energy storage solutions which will have a critical impact on the global environment in the coming decade. Vanadium catalysts allow for the efficient production of sulfuric acid, maleic anhydride (precursor to fiberglass), and other important substances Potential new applications for vanadium include as a metamaterial, in optical switches, in piezoelectric applications and optical applications 35

36 Thanks! Terry Perles TTP Squared, Inc. 36