Quarterly Activities Report - Period Ending 31 March 2024

HIGHLIGHTS

The Australian Vanadium Project

• AVL implemented its merger with Technology Metals Australia Limited on 1 February 2024, integrating two adjoining projects on one contiguous orebody.
• Following completion of the merger, AVL accelerated work to combine the projects, including:
  • Commenced an optimised feasibility study focused on realising the potential economic benefits of an integrated project, including trade-off studies to determine the preferred project development pathway, mine scheduling and processing plant location.
  • Completed metallurgical testwork confirming average vanadium concentrate grades of up to 1.6% V₂O₅, suggesting a single high-grade project can be delivered from the combined projects.
  • Completed pilot scale testwork achieving 99.9% ultra-high purity V₂O₅ for specialty chemical, aerospace and defence applications.

Vanadium in energy storage

• AVL’s electrolyte manufacturing facility located in Perth, Western Australia, has delivered operational milestones including:
  • Successfully produced vanadium electrolyte for use in vanadium flow batteries (VFBs).
  • Independent testing confirmed that the vanadium electrolyte produced complies with typical specifications required by VFB manufacturers.
• The facility has been designed to produce annual quantities of high purity electrolyte equivalent to 33MWh of battery energy storage capacity.
• The VFB purchased for a VSUN Energy project with customer Horizon Power arrived in Australia and is undergoing factory acceptance testing.

Corporate

• No lost time injuries or reportable environmental incidents were recorded during the quarter.
• Appointment of Jo Gaines as a Non-Executive Director.
• Effective prior to ASX market opening on 18 March 2024, AVL was included in the Standard & Poors (S&P)/ASX All Ordinaries Index.
• Cash position of $24.9 million as at 31 March 2024, including restricted cash of $0.4 million.

Management Comment, CEO, Graham Arvidson

“AVL made great progress during the quarter across the vanadium value chain, focusing efforts on integrating the merged projects. We are pleased to have commenced an optimised feasibility study to maximise the economic benefits from the now unconstrained orebody resulting from the merger. The metallurgical testwork conducted during the period has reinforced our confidence for a long-life, high-grade project in the southern areas of the deposit. The combined project promises to deliver a material increase in value for our shareholders.

“This quarter marked a transformative step toward AVL’s goal of creating an Australian vertically integrated VFB supply chain. We successfully completed the commissioning of our 33MWh vanadium electrolyte manufacturing facility, achieving our first production of vanadium electrolyte. Our team’s commitment to excellence in design, construction and operation of the facility has culminated in the production of battery-ready electrolyte, another significant milestone for AVL. With this achievement, we are positioned to become the leading supplier of locally produced vanadium electrolyte, ready to deliver to the rapidly growing VFB market in Australia.

“Our wholly owned subsidiary, VSUN Energy, continues to deliver on existing VFB projects and is strategically positioned to play a leading role in VFB deployment in Australia. We are witnessing an accelerating adoption of this mature and commercialised technology, which is increasingly recognised as the preferred solution to the rapidly growing long duration energy storage market.”

Click here for the full ASX Release

This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.