Bushveld Minerals-Junior Indaba presentation
29. 29 Appendix
34. 34 Bushveld Vametco Processing Steps
10. 10 10
30. 30 Board of Directors Anthony Viljoen Non Executive Director Jeremy Friedlander Non Executive Director Ian Watson Non Executive Chairman Fortune Mojapelo Chief Executive Officer Geoff Sproule Financial Director Michael Kirkwood Non Executive Director
1. T HE L EADING I NTEGRATED L OW C OST P RIMARY V ANADIUM P RODUCER 6 J UNE 2018 Presentation to the
14. 14 • An energy storage solutions company, which is an i ntegrated part of Bushveld Minerals • Exclusively focused on vanadium redox flow battery (VRFB) technology (potential US$70bn addressable market for VRFBs) • Markets and develops projects using VRFB based energy solutions across Africa • Working with the Industrial Development Corporation (IDC) to establish VRFB and electrolyte production in South Africa • Positioned to be a key electrolyte supplier, through strategic relationships with downstream stakeholders in the vanadium battery supply chain Bushveld Energy Overview Focused on developing and promoting the role of Vanadium in the global energy storage market
12. 12 Brits Vanadium Project Large high - grade primary vanadium resource base • Outcropping, strike extension of the Vametco mine • Exploration programme commenced in Q1CY18, with the aim of delineating a maiden Mineral Resource Estimate • Positive results from a soil geochemical sampling programme and ground magnetic survey has led to several drilling targets being delineated • Historical drilling showed in - magnetite grades of as much as 2.6% V 2 O 5 Upper Zone Main Zone Main Zone Upper Zone Upper Zone Main Zone Main Zone Upper Zone Upper Zone Main Zone Main Zone Upper Zone Upper Zone Main Zone Main Zone Upper Zone
31. 31 Vametco Leadership Team Malcolm Curror Chief Executive Officer Tanya Mostert Chief Financial Officer Lyndon Williams Chief Operations Officer William Steinberg Works Manager Bushveld Vametco’s senior management team has over 100 years of vanadium mining and processing experience in South Africa • CEO of Vametco since April 2011 • Formerly General Works Manager for Xstrata Vanadium’s Rhovan Integrated Vanadium Operations in SA, a position held since mid - 2005 • Malcolm previously held a range of senior management positions with Xstrata SA from Production Manager to Operations Manager at Rhovan, Vantech and Lydenburg Operations, from 1995 • Now President of Vanitec for second term running • Over 22 years experience in the primary vanadium mining and processing industry
3. 3 Company Overview An integrated vanadium platform with investments in coal & power 1 VANADIUM A growing, low cost, and vertically integrated vanadium mining and processing platform Developing an integrated thermal coal and IPP asset in Madagascar HOLDINGS COAL & POWER BUSHVELD ENERGY Participates in the developing and commercially attractive global energy storage market FLAGSHIP 1. T he Company holds a 17.48% shareholding in AIM - listed AfriTin Mining Limited
7. 7 Quality Primary Vanadium Asset Portfolio • Located in South Africa’s Bushveld Complex, host to some of the world’s largest high grade primary vanadium resources • Bushveld Minerals resource base: open - cast, high grade primary vanadium deposit portfolio, 439.6Mt combined resource (including 55 Mt combined reserves) • Controlling interest of 59.1% in an existing low cost production platform, Vametco Alloys, with ~3% of global market share • Quality brownfield processing infrastructure in close proximity to Bushveld deposits • In - depth geology, mining and metallurgical expertise with global experience in the vanadium industry • Sound mining and processing infrastructure • A solid mining jurisdiction, where mining is understood to be a significant driver of GDP • Access to a growing and potentially large downstream energy storage market opportunity Bushveld is growing to be one of the largest primary vanadium producing companies
6. 6 Experienced Leadership Team Fortune Mojapelo Chief Executive Officer Malcolm Curror Chief Executive Officer Vametco Kate Bredin Head of Compliance Mikhail Nikomarov Chief Executive Officer Bushveld Energy Prince Nyati Chief Executive Officer Lemur Holdings Geoff Sproule Chief Financial Officer • Founder and Chief Executive Officer of Bushveld Minerals Limited • Co - founder and director of VM Investment (Pty) Ltd, a principal investments and advisory company focusing on developing mining projects in Africa • Founding CEO of Bushveld Minerals Limited where he has played a lead role developing and executing the company’s vanadium strategy • Played a leading role in the origination, establishment and project development of several junior mining companies in Africa including Greenhills Resources, Bushveld Resources and New Horizon Minerals • Fortune’s corporate career started at McKinsey & Company as a strategy consultant
36. 36 Vanadium is the simplest and most developed flow battery How does a vanadium redox flow battery (VRFB) work? Source: IEEE Spectrum: It’s Big and Long - Lived, and It Won’t Catch Fire: The Vanadium Redox - Flow Battery , 26 October 2017 • Vanadium can exist in four different states, allowing for a single element to be used • Benefits include simplicity and no cross - contamination • In 2010, US DoE funded research at PNNL yielded an improved electrolyte formula • A flow battery was first developed by NASA in the 1970s and is charged and discharged by a reversible reduction - oxidation reacti on between the two liquid vanadium electrolytes of the battery • Unlike conventional batteries, electrolytes are stored in separated storage tanks, not in the power cell of the battery • During operation these electrolytes are pumped through a stack of power cells, or membrane, where an electrochemical reaction ta kes place and electricity is produced
33. 33 SOJITZ Corp. JP Strategic Minerals Corporation US Vametco Holdings (Pty) Ltd ZA Vametco Alloys (Pty) Ltd ZA 75% 100% 21.2% 100% Bushveld Vametco Limited Guernsey Bushveld Resources Guernsey 78.8% Local Partners ZA 25% Bushveld Minerals Corporate Structure Bushveld Minerals Limited Guernsey 100% Note: Pamish Investments 39 (Pty) Limited is the holder of prospecting right 95PR. Prospecting right 95PR is one of two prosp ect ing rights pertaining to the Mokopane vanadium project. Pamish Investments 39 (Pty) Limited is 64% owned by Bushveld Resources. Amaraka Investments No. 85, a 68.5% subsidiary of Bushveld Resources, is currently in negoti ati ons with the owner of the other prospecting right pertaining to the Mokopane vanadium project, PR 438, for its transfer B. The licences for the Brits Vanadium Project will be registered in the name of Bushveld Resources conditional on Section 11 ap pro val of the MPRDA. They are currently held by Great 1 Line Invest (Pty) Limited and Gemsbok Magnitite (Pty) Ltd, subsidiaries of Sable Platinum Mining Limited .
23. 23 VRFB Adoption Hurdles Stability of vanadium input cost Security of supply • Vanadium input costs contribute 30% - 40% of the cost of the VRFB systems • Vanadium prices have risen >200% in the past 12 months • Bushveld vanadium projects are well positioned with a lower first - quartile cash cost to mitigate security of cost risk • New business models for electrolyte supply are now being developed • 1,000 MWh of VRFB - based energy storage requires ~6% of global vanadium supply • VRFBs estimated to contribute 20% of vanadium consumption by 2030 • Extensive vanadium resource in South Africa of roughly 440 Mt • High grade of vanadium resources in Bushveld complex allow for low cost, primary vanadium production Global challenge Bushveld’s opportunity Bushveld Minerals is well positioned to address the two major hurdles to VRFB adoption
38. 38 Registered Office 18 - 20 Le Pollet St Peters Port Guernsey Principal Operating Address 2 nd Floor, Building 3 Illovo Edge Office Park 9 Harries Road, Illovo Johannesburg, 2116 South Africa Tel: +27 11 268 6555 Independent Auditor RSM UK Audit LLP 25 Farringdon Street London, EC4A 4AB Nominated Adviser & Broker SP Angel Prince Frederick House, 35 - 39 Maddox Street, London W1S 2PP Legal Counsel - UK 4 More London Riverside London, SE1 2AU Corporate Information Financial PR Blytheweigh 4 - 5 Castle Court London, EC3V9DL Broker Alternative Resource Capital 8 - 10 Hill Street, London, W1J 5NQ
37. 37 • One of only three main coal plays in Madagascar , including a mining license • The only baseload power plant in southern Madagascar • 136 Mt thermal coal resource (indicated & measured JORC) • Coal mine scoping study completed in 2014 • Pre - feasibility study for 45MW power plant and +200km transmission line completed in 2013 • Single stage washing generates a primary product with calorific value of 25.6MJ / kg and ash% of 16.5% • Executed a binding 30 - year Concession Agreement with the Government of Madagascar • Executed binding 30 - year PPA with Madagascar state utility, JIRAMA • Strategy to develop integrated mine - to - power generation play o MoU with Sinohydro for development of upgraded 60MW power project o BFS for power project underway o Social Enviromental Impact Assessment study commenced in Q2CY18 o Initial Funding Discussions initiated with potential lenders Lemur Holdings Overview Developing an integrated thermal coal mining and IPP asset in Madagascar COAL & POWER HOLDINGS HOLDINGS COAL & POWER
19. 19 Vanadium Demand - Steel Sector • Vanadium consumption and steel production are strongly correlated • Vanadium demand is expected to grow as: - Steel production grows; and - Compliance with new Chinese rebar standards increases • Demand will continue to be underwritten by the steel sector • Regulatory prescriptions make it possible to estimate with relative certainty demand outlook for vanadium in steel sector 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 World steel production (kt) Year V consumption (mtV) Steel Production & World apparent Vanadium consumption – High Steel Forecast Vanadium consumption in steel forecast (mtv) (LHS) World Apparent Vanadium consumption (mtv) (LHS) World Steel Production (kt) (RHS) Linear (World Apparent Vanadium consumption (mtv) (LHS)) Linear (World Steel Production (kt) (RHS)) Strong positive correlation between steel production and vanadium consumption Source: Bushveld Minerals analysis, Roskill, World Steel Association
35. 35 Bushveld Vametco Processing Steps Concentration Salt Roasting Leach Milling & Purification AMV precipitation Modified Vanadium Oxide Production Nitrovan ® shaft furnace • The ore is passed through a three - stage crushing and milling circuit to produce a product sizing suitable to liberate the ganged materials in the ore, typically 45% passing 75 microns and passed through a low intensity magnetic separation circuit to produce a magnetite concentrate product • The concentrate is roasted with sodium carbonate and sodium sulphate in a rotary kiln at temperatures of up to 1,150 o C to form water - soluble sodium vanadates. Solids exiting the rotary kiln are discharged directly into a rotary cooler that cools the solids sufficient for conveying to the leaching circuit • The cooled calcine is fed to a wet ball mill which grinds the agglomerated material for improved leaching and also acts as the first stage of leaching. The mill discharge slurry is pumped to belt filters to separate the vanadium rich solution and calcine tailings. The vanadium rich solution is pumped to thickeners where desilication and concentration of the vanadium - bearing leach liquor takes place. Calcine tailings are conveyed to the tailings disposal facility • Ammonium sulphate is added to the vanadium - bearing leach liquor which allows for the precipitation of vanadium in the form of ammonium metavanadate (AMV) • Nitrovan ® production – the MVO is mixed with carbon and a binder which is briquetted and fed into an induction shaft furnace under a nitrogen atmosphere to produce Nitrovan ® • The AMV filter cake is dried in a rotary dryer and thereafter transferred to the MVO Rotary Calciners to produce Modified Vanadium Oxide (MVO)
27. 27 Bushveld’s Minerals Investment Proposition A leading, low cost, vertically integrated primary vanadium mining and processing platform Large, open cast deposits 439.6Mt combined resource (including ~ 55 Mt combined reserves) Some of the highest primary grades in the world ~2% in - magnetite V 2 O 5 grades Vertical integration with low cost base presents opportunity for entry into the multibillion - dollar energy storage industry Experienced leadership team with over 100 years of experience Concentrated global supply with South Africa as the largest host of high - grade primary vanadium resources Established brownfield infrastructure allows for low capex scale - up to up to significant share of vanadium supply One of the lowest primary vanadium producers 1 6 2 4 7 5 3
18. 18 Steel sector demand drivers ... • Circa 90% of vanadium demand is underwritten by the steel industry where it is used as an additive • China is the largest market for vanadium • The country’s vanadium consumption is anticipated to grow at a CAGR of 2.3% up to 2017 due to a revision of the tensile strength of steel rebar products, announced in 2017 • Increasing intensity of use in steel in emerging markets, especially in China, due to improved enforcement of regulations • China’s new standard is designed to limit and eliminate the use of inferior steels in construction (Grade 2 rebar): - Grade 3 (400MPa), Grade 4 (500MPa), and Grade 5 (600MPa), will require 0.03% V, 0.06% V, and more than 0.1% V respectively - The above could lead to an increase in Chinese vanadium demand of over 30% or 10,000 tpa in 2018 ... with substantial energy storage upside • Vanadium’s unique characteristics positions it well for large scale, long duration energy storage using VRFBs • VRFB technology is already in commercial production with large (MW) scale deployments globally • China’s new National Development Plan’s (Document #1701) “focus includes 100MW - grade, vanadium redox flow battery energy storage stations” • Impact on vanadium demand significant as vanadium comprises 30 - 40% of cost of VRFB systems • Commercialisation of Energy in Europe, EC report: there will be economic potential for very large amounts (about 400 GW) of storage in the EU Robust Demand for Vanadium
15. 15 Bushveld Minerals Growth Strategy As an integrated vanadium producer focused on enhancing growth horizontally and vertically Horizontal growth strategy Vertical growth strategy Horizontal Growth Organic growth • Leverage its high quality vanadium resources • Existing global vanadium market share of more than 3%, expected to grow to over 5% with the completion of the three - phase expansion project by 2019 • Near - term brownfield growth will raise capacity at Vametco to over 5,000 mtV per annum by 2019 Targeted brownfield opportunities • Continued focus on enhancing value through targeting brownfield opportunities • Diversify product portfolio Vertical Growth • Portfolio diversification through the supply of electrolyte for vanadium redox flows batteries (VRFBs) for energy storage • Bushveld Energy established to promote use of vanadium in energy storage by o Exclusively focusing on VRFB technology o Marketing and developing utility scale projects using VRFB based energy solutions across Africa o Partnering with UniEnergy Technologies (UET), a US - based leading VRFB manufacturer o In process of delivering a VRFB with a peak power of 120kW and peak energy of 450 kWh into Eskom’s RT&D facility by Q2CY18 o Working with the IDC to establish a VRFB and vanadium electrolyte production in South Africa
8. 8 Quality Primary Vanadium Asset Portfolio Large, High Grade Primary Vanadium Resource Base Vametco Vanadium Mine • 26 Mt reserve average in - magnetite grade of 1.96% V 2 O 5 (JORC) • 142.4 Mt Resource with average in - magnetite grades of 1.96% V 2 O 5 • Operating with a RoM of ~1.3 mtpa 1 Brits Vanadium Project • Outcropping, strike extension of the Vametco mine • Historical drilling showed in - magnetite grades of as much as 2.6% V 2 O 5 Mokopane Vanadium Project • 298 Mt JORC, outcropping reserve and resource • Vanadium in - magnetite grades of 1.75% V 2 O 5 • PFS completed January 2016 • Expect to be granted a New Order Mining Right 2 3 1 2 3 1 Vametco Mokopane Vanadium Brits Vanadium
26. 26 We Have Delivered On Our Commitments... • Acquisition of Bushveld Vametco Limited with 100% ownership completed in 2017 • AfriTin Demerger completed in 2017 • Lemur: Signed a 30 PPA with JIRAMA and a technical partnership with Sinohydro • Lemur: Executed a binding 30 - year Concession Agreement with the Government of Madagascar • Successfully completed the first phase of the expansion project at Vametco • Vametco is one of the lowest cost producers, positioned in the first quartile • On track to deliver first VRFB project with Eskom in Q2CY18 Developing each of the Company’s platforms Asset/project development ... And We Will Continue To Deliver On Our Objectives Vametco • On track to complete on time and within budget the second phase of the expansion project which will take production capacity to 3,750 mtV • Complete the third phase of the expansion project which will take production capacity to 5,000 mtV • Continuously striving to reduce cost Brits • Commenced an exploration programme in Q1CY18 which has shown positive drilling results. The aim is to establish a positive maiden Mineral Resource Estimate Mokopane • Expect to be granted a New Order Mining Right • Develop the project along the Company’s broader vanadium portfolio • Deliver the first VRFB project with Eskom in Q2CY18 • Grow the VRFB project pipeline across Africa • Supply electrolyte samples to VRFB OEMs and secure interest in electrolyte offtake globally • Conclude the SEIA Study • Pursue funding and credit enhancement options for the project, which have already been initiated Bushveld Minerals Progress
24. 24 Ore Hot metal (Fe, V) Steel Smelting Magnetite concentrate Salt roasting of concentrate with sodium salts at ~1200 o C to form water soluble sodium vanadate material TiO 2 slag Vanadium slag Leaching, filtration, desilication, precipitation followed by reaction to form vanadium pentoxide Vanadium pentoxide/modified vanadium oxide is converted into FeV or NV Hot metal (Fe) Calcine tailings (Fe, Ti) DRI + EAF/ Blast furnace V recovery - Ladle furnace BOF + Steel Casters Salt Roast Processing Salt Roasting Leaching & purification FeV/NV production V 2 O 5 / MVO STEEL PLANT CO - PRODUCTION FLOWSHEET (74% of Global Vanadium Feedstock Production) SALT ROAST FLOWSHEET (14% of Global Vanadium Feedstock Production) Source: Bushveld Minerals analysis Understanding Vanadium Supply Co - product slag currently accounts as source of most vanadium supply, but the future lies with primary vanadium ore feedstock There are several greenfield vanadium projects exploring hydrometallurgical processing methods to produce iron, vanadium and titanium. None of these is yet in commercial production
9. 9 Vametco Overview • Open - pit mine along 3.5km strike with in - magnetite V grades of c.2% V 2 O 5 , among the highest in the world • 26 Mt, 26.79% magnetite, 1.96% V 2 O 5 reserve and 142.4 Mt resource, 29.44% magnetite, 1.96% V 2 O 5 • Utilises well - established salt roast processing method to produce refined vanadium in the form of Nitrovan ® and modified vanadium oxide (MVO) • Three - phase capacity expansion underway: o Phase I: completed in Q3CY17, raised production capacity to 3,035 mtV, through a self - funded capex of US$0.5m o Phase II: will take capacity to 3,750 mtV by June CY18, through a self - funded capex of US$2.5m o Phase III: to increase capacity to 5,000 mtV by the end of CY19, through a self funded capex of ~US$15m • 483 employees (including contractors) • Management with over 100 years of vanadium mining and processing experience in South Africa Vametco enjoys a significant, c. 3% market share of the global vanadium market with expansion plans underway to increase this to more than 5% Source: Company records Vametco plant
16. 16 0 10 20 30 40 50 60 70 80 May'12 Jul'12 Sep'12 Nov'12 Jan'13 Mar'13 May'13 Jul'13 Sep'13 Nov'13 Jan'14 Mar'14 May'14 Jul'14 Sep'14 Nov'14 Jan'15 Mar'15 May'15 Jul'15 Sep'15 Nov'15 Jan'16 Mar'16 May'16 July'16 Sep'16 Nov'16 Jan'17 Mar'17 May'17 Jul'17 Sept'17 Nov'17 Jan'18 Mar'18 May'18 FeV historical mid - price US$/kgV Robust and growing demand from steel sector with significant upside from energy storage application uses Constrained supply, with short term reductions and limited new supply prospects A sustained structural market deficit, with significant price upside + Source: Metal Bulletin, 31 May 2018 Vanadium Market Vanadium supply deficit resulted in more than a 300% price increase over the past 24 months
5. 5 • Large high grade ore for primary vanadium mining • Significant resource base in the best areas of the Bushveld complex • Electrolyte manufacturing • Scope to co - locate in Vametco process => significantly lowering costs • VRFB Assembly & manufacturing • MW scale energy storage project development • Deployment models include PPAs, leasing models Targeting more than 5% of global V market by 2019 Targeting initial 200MWh of electrolyte p.a. Targeting 1000 MWh by 2020 • Bushveld Minerals’ ambition is to grow into one of the world’s most significant, lowest cost and vertically integrated vanadium companies • This allows the Company to leverage its large low cost production base and be a catalyst in the emerging energy storage industry • Large, low cost vanadium processing • Focus on expansion and enhancement of brownfield operation ~US$6 Billion market Potential >US$70 Billion addressable market for VRFBs Bushveld’s Minerals Vision A leading, low cost, vertically integrated primary vanadium mining and processing platform Source: BCG, Bushveld Minerals analysis, Citi, Roskill, TTP Squared
17. 17 Vanadium Characteristics and Uses Vanadium is a grey, soft, ductile high value metal with several unique characteristics that position it well in the steel, alloys and chemicals sectors • Vanadium (V) is a rare chemical element, in pure form is a grey, soft, ductile element that does not occur in native form but as a component of minerals and as an impurity amongst hydrocarbons and bauxites • It readily forms several stable oxidation states (II, III, IV, and V) Steel • High strength - to - weight ratio • Corrosion resistance • Weldability • Fabricability Chemicals • Ability to exist in 4 different oxidation states • Water - soluble • Resistant to attack by alkalis, hydrochloric acid, sulphuric acid, and salt water The steel industry accounts for >90% of total vanadium consumption Vanadium electrolyte accounted for ~2% of global vanadium consumption in 2017, projected to grow to >20% by 2030 as VRFB deployments gain momentum Source: Bushveld Minerals analysis, TTP Squared Construction steel - rebar Alloys for aerospace industry Long duration utility scale batteries Characteristics
22. 22 Vanadium Redox Flow Battery Vanadium redox flows batteries estimated to contribute up to 20% of vanadium consumption by 2030 1. Long lifespan cycles: Ability to repeatedly charge/ discharge over 35,000 times for a lifespan of over 20 years 2. 100% depth of discharge: Without performance degradation is unique to VRFBs 3. Lowest cost per kWh when fully used at least once daily makes VRFBs today cheaper than Li - ion batteries 4. Safe, with no fire risk from thermal runaway 5. 100% of vanadium is re - usable upon decommissioning of the system 6. Scalable capacity to store large quantities of energy (MW - range) 7. Flexibility: Allows capture of the multi - stacked value of energy storage in grid applications 8. Very fast response time of less than 70ms 9. No cross - contamination: Only one battery element, unique among flow batteries Source: Bushveld Energy analysis, Lazard’s Levelised Cost of Energy Storage Analysis – Version 3.0 (November 2017) According to analysis from the investment bank Lazard, VRFBs already have the lowest costs in the industry 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 Peaker replacement Distribution Micro-grid Lithium-Ion VRFB USD / kWh, 1 2017, levelised costs - 29% - 26% - 32%
25. 25 Three response options • Switch – to haematite ores to blend and upgrade magnetite feed (e.g. Chengde) • Curtail – reduce production (e.g. Panzhihua) • Stop – production (e.g. Highveld ) Significant reduction in V supply and limited scope for new production from co - producers High input costs • Low Fe grade <30% deposits, require concentrating to ~60% Fe • Higher input costs than steel plants processing haematite ores 1 • Such plants make up small share of steel production – too small to influence steel prices • Improved margins from cheaper seaborne iron ore not available No leverage on steel prices 3 High operating costs • Complex steel plant design • Inferior Fe grade • Additional processing steps to remove Ti and V 2 Source: Bushveld Minerals analysis, Roskill, TTP Squared • Being mostly co - producer steel plants, their environmental footprint is negative • In the firing line of the Central government’s crackdown on pollution Environmental constraints 4 74% 14% 12% Vanadium Production 2017 by type (total 92,392 mtV) Co-product Steel Slag Primary V ore Secondary Constrained Vanadium Supply Vanadium co - production supply facing significant production constraints with faltering material contributions
21. 21 Vanadium Redox Flow Battery • The flow battery, unlike conventional batteries, uses a liquid vanadium electrolyte to store energy in separated storage tanks, not in the power cell of the battery • During operation these electrolytes are pumped through a stack of power cells, or membrane, where an electrochemical reaction takes place and electricity is produced • VRFB is the simplest and most developed flow battery in mass commercial operations • The unique features of VRFBs make them ideal for utility scale, stationary energy storage applications Vanadium Demand – Vanadium Redox Flow Batteries “ Vanadium has soared more than 130% in the past, outperforming better - known battery components like cobalt, lithium and nickel. Analysts are expecting a shift in uses of vanadium. The metal can be used in industrial - scale batteries, which help to even out daily peaks and troughs from renewables ... ” Bloomberg, January 2018 The l argest battery systems currently in deployment globally Technology Company Location Size VRFB Rongke Power Dalina, China 800 MWh VRFB Pu Neng Hubei, China 500 MWh Li - ion Fluence California, USA 400 MWh 1. Driving grid efficiency – operational and capital expenditure • Peak shaving or peaking capacity • Regulating load frequency and providing other ancillary services • Balancing PV and wind intermittency • Reducing and deferring capex for transmission and distribution lines 2. Driving grid independence • Storing electricity from solar PV for use at night • Lowering system costs for micro grids and islands Applications of VRFBs VRFBs are ideally suited for large scale, long duration storage applications Vanadium has outperforming better - known battery components like cobalt, lithium and nickel
4. 4 Market Metrics Source: Bloomberg, 31 May 2018 BMN Share Price (31 May 2018) 18.75p Basic Ordinary Shares 1,075,354,650 52 - Week Hi - Lo 24.20 – 7.62p Market Capitalisation £201,628,997 Warrants in issue 19,145,012 Source: Link Asset Services. As at 30 April 2018 YTD Share Price Performance (indexed) AIM: BMN 0% 50% 100% 150% 200% 250% 300% Jan - 18 Feb - 18 Mar - 18 Apr - 18 May - 18 Bushveld Minerals FTSE AIM All shares Ferro-vanadium basis 78% min, US$/kg V Bushveld Minerals Top 10 Shareholders # shares % ownership 1 Hargreaves Lansdown Nominees 152,163,433 14.25 2 Interactive Investor Sharedealing 108,207,624 10.13 3 Halifax Share Dealing 92,926,627 8.70 4 Acacia Resources Limited 85,598,644 8.02 5 Yellow Dragon Holdings Limited 79,766,364 7.47 6 First Island Trust Company Limited 41,349,909 3.87 7 Jose Roy Hernandez Borromeo 37,969,130 3.56 8 Selftrade - Talos Securities 35,229,084 3.30 9 Barclays Wealth and Inv Management 29,355,374 2.75 10 A J Bell Securities 28,019,927 2.62 Source: Bloomberg, 31 May 2018 Strong share price performance since March, with increasing interest from institutional investors
32. 32 Category Tonnes (millions) Magnetite % V 2 O 5 % contained in magnetite Contained Metal Total V 2 O 5 (tonnes) Upper Seam Inferred 11.8 37.86 1.70 75,947 Intermediate Seam Inferred 21.6 30.45 1.87 122,994 Lower Seam Indicated 61.5 27.23 2.01 336,604 Inferred 47.4 29.75 1.99 280,620 Sub - Total Indicated 61.5 27.23 2.01 336,604 Sub Total Inferred 80.90 31.12 1.92 479,561 Total Inferred + Indicated 142.40 29.44 1.96 816,165 Category Tonnes (millions) Magnetite % V 2 O 5 % contained in magnetite Contained Metal Total V (tonnes) Lower Seam Probable 26.12 26.79 1.96 137,152 Total 26.12 26.79 1.96 137,152 Vametco Mineral Resources and Ore Reserves (Gross) Vametco Mineral Resources (100% basis) Bushveld Minerals see - through interest is 59.1% Vametco Mineral Reserves (100% basis)
20. 20 0 10000 20000 30000 40000 50000 60000 0 200,000 400,000 600,000 800,000 1,000,000 Vanadium (tV) Steel (kt) China Crude Steel and Vanadium China crude steel production (LHS) (kt) China crude steel consumption (LHS) (kt) China vanadium consumption (RHS) (tV) Source: Bushveld Minerals analysis, TTP Squared Greater enforcement in China of existing and new rebar standards driving greater vanadium intensity of use in steel Steel Sector Demand Drivers Are Robust 0.8% 1.5% - 3.1% 2014 – 2017 CAGR 2015 - 2017 Quenching and tempering techniques used by rebar producers to minimise use of alloying elements, thus blunting impact of codes on vanadium demand 5.2% 3.9% 9.8% 2010 – 2014 CAGR Quenching & tempering techniques among steel plants leads to lower V consumption 2010 Code for Design of Concrete Structures (GB50010 - 2010) issued in August 2010 and took effect from 1 July 2011 2011 Update of Code for Construction Quality Acceptance of Concrete Structures (GB 50204 – 2002) – issued in December 2010 and took effect from 1 August 2011 2018 China’s new high - strength rebar standard introduced in January 2018, effective November 2018 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of China Rebar Structure China Rebar Product Structure Gr.1 - 235MPa Gr.2 - 335MPa Gr.3 - 400MPa Gr.4 - 500MPa Gr.5 - 600MPa 0.45% 19.36% 67.31% 6.49% 3.77%
11. 11 1. Consisting of 3,050 mtV Nitrovan® and 630 mtV FeV 2. Ferro - vanadium basis 78% min, US$/kg V 3. Following the completion of the acquisition of the remaining 55% share in Vametco in December 2017, Bushveld’s net attributable interest is 59.1%, and will be consolidated on a 100% basis from the December 2017 financials 4. Excludes depreciation, royalties, selling, general, & administrative expenses • Production capacity CY18 production guidance of 3, 680 mtV 1 , supported by the second phase of the expansion project Expansion project to grow Vametco’s share of global market from over 3% to over 5% • Vanadium Price Strong price performance trading at an average of ~US$64/kgV 2 YTD: o Vametco’s realised price is based on an average 1 month prior to sale • Cost CY18 production cost expected to decrease by 7% from ZAR221/KgV to ZAR205/KgV, mainly due to economies of scale Bushveld Vametco results 3 (100%) CY17 CY16 CY15 Vanadium produced (mtV) 2,649 2,856 2,419 Vanadium sold (mtV) 2,721 2 ,810 2,340 FeV LMB price US$/Kg V 32.6 18.5 18.6 USD/ZAR exchange $=ZAR 13.3 14.7 12.8 Revenue ZAR'm 1,090.3 760.0 629.3 EBITDA ZAR'm 315.6 48.3 16.7 Production costs 4 ZAR/kg V 220.7 189.8 185.8 Production costs 4 USD/kgV 16.6 12.9 14.6 Positive Key Performance Drivers For Vametco Bushveld Vametco’s Global Customer Base (CY17 Sales) 3% 4% 52% 16% 18% 7% China Republic of South Africa Americas Europe Asia RoW Source: Bloomberg, Company records
13. 13 Measured and indicated resources (bubble size = contained V 2 0 5 ) size Mokopane Vanadium Overview Key project statistics compared to other vanadium projects Development strategy options • Secure mining right • Supply ore to China • Supply ore to other brownfield plants • Develop greenfield integrated mine and processing plant producing 5.3 ktV tpa of a >99% purity V 2 O 5 product 1. Based on the Pre Feasibility Study (PFS) completed in 2016 2. The Mokopane Vanadium Project PFS was based on the MML only which is 63Mt even though the overall project resource is 300 Mt Item 1 Unit Value Production Mineral Resource Mt 300 2 Ore Reserve Mt 28 Grade (in - situ) % 1.4% Grade (in - magnetite) % 1.75% Assumed Vanadium Price $/lb V 2 O 5 7.50 Initial Capital Costs US$ m 298 NPV @ 9% real US$ m 418 IRR real % 25% Primary producer Co - producer Source: Bushveld Minerals analysis, Roskill Vametco 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 0 50 100 150 200 250 300 350 400 Mokopane Resource size (Mt) Resource grade (%V 2 0 5 ) Project Project Project Project Project Project Project Project Project Project Project
2. 2 Disclaimer These presentation slides and any other material provided with these slides (the “Presentation Materials”) do not comprise an admission document, listing particulars or a prospectus relating to Bushveld Minerals Limited (the “ Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities . The Presentation Materials and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company . The Presentation Materials and the accompanying verbal presentation are confidential and the Presentation Materials are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose . No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials and the accompanying verbal presentation or the completeness or accuracy of such information . No representation or warranty, express or implied, is given by or on behalf of the Company or its respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Presentation Materials and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud) . The Presentation Materials contain forward - looking statements, which relate, inter alia , to the Company’s proposed strategy, plans and objectives . Such forward - looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward - looking statements . Accordingly, you should not rely on any forward - looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward - looking statements . The Presentation Materials and their contents are directed only at persons in the United Kingdom who are “qualified investors” within the meaning of section 86 ( 7 ) of the Financial Services and Markets Act 2000 (“FSMA”) and who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of FSMA and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made . Any investment, investment activity or controlled activity to which the Presentation Materials relate is available only to such persons and will be engaged in only with such persons . Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Presentation Materials . The Presentation Materials should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the Republic of South Africa, the Republic of Ireland, Australia or Japan or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement . No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any representation to the contrary is an offence . No document in relation to the Company’s securities has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Company’s securities . Accordingly, subject to certain exceptions, the Company’s securities may not, directly or indirectly, be offered or sold within Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Australia, Japan, South Africa or the Republic of Ireland . Neither this presentation nor any copy of it may be taken or released or distributed or published, directly or indirectly, in the United States of America (the “United States”) . The material set out in the presentation is for information purposes only and is not intended, and shall not be construed, as an offer for securities for sale in the United States or any other jurisdiction . The securities contemplated in these slides (the “Securities”) have not been, and will not be, registered under the United States Securities Act of 1933 , as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act except pursuant to an exemption from or in a transaction not subject to the registration requirements of the applicable securities legislation . The Company has not been registered and will not register under the United States Investment Company Act of 1940 , as amended . The Presentation Materials and its contents are confidential and should not unless otherwise agreed in writing by the Company be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person .
- 3692 Total Views
- 2614 Website Views
- 1078 Embeded Views
- Social Shares
- 0 Likes
- 0 Dislikes
- 0 Comments
- 0 Facebook
- 0 Twitter
- 0 Google+
- 256 www.thebushveldperspective.com
- 33 thebushveldperspective.com
- 5 prelaunch.thebushveldperspective.com
- 4 w.thebushveldperspective.com
- 1 demo1.dev.thebushveldperspective.com
- 5 188.8.131.52
- 2 www.demo1.dev.thebushveldperspective.com
- 3 184.108.40.206:8069
- 2 www.w.thebushveldperspective.com
- 2 sitemaps.thebushveldperspective.com
- 1 sitemap.thebushveldperspective.com
- 2 2fwww.thebushveldperspective.com
2017 Project-Boost8933 Views .
Mokopane Updated Scoping Report8271 Views .
DALIAN RONGKE POWER CO. LTD - VFB7912 Views .
Bushveld Minerals in a Minute7100 Views .
Mokopane PFS - Jan 20166175 Views .
How Does A Vanadium Redox Flow Battery (VRFB) Work?6133 Views .
2017 Annual Report5538 Views .
2015 Annual Report4889 Views .
Mokopane Scoping Study - 20144834 Views .
2014 Annual Report4821 Views .
Basics of Battery energy storage systems (BESS)4819 Views .
2016 Annual Report4773 Views .
HOW THE VANADIUM REDOX BATTERY (VRB) WORKS4545 Views .
Search for the Super Battery - NOVA Documentary4539 Views .
Lithium-ion Fire at Drogenbos, 11.11.20174410 Views .
Geological Map of Mokopane4300 Views .
IRP draft 27-8-183935 Views .
Bushveld chief Fortune Mojapelo 'excited' about 20173905 Views .