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Vanadium THE Green Metal 11/23/2016 TTP Squared, Inc. Quebec Mines 2016 1
VanadiumTHE Green Metal
11/23/2016TTP Squared, Inc. Quebec Mines 2016 1
Vanadium Reserves
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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
(Rounded)
14,000
11/23/2016TTP Squared, Inc. Quebec Mines 2016 3
Vanadium Production
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56%
10%
12%
7%
8%
2%1%0% 1%
3%
V Production by Country 2015
China
Russia
South Africa
North America
Europe
Japan
Korea
Taiwan
India
Brazil
11/23/2016TTP Squared, Inc. Quebec Mines 2016 6
71%
18%
11%
Vanadium Production 2015by Raw Material Type
Coproduct Steel Slag
Primary V Ore
Secondary
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30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Met
ric
Ton
s V
pe
r Ye
arVanadium Production 2001 - 2015
2001-2015 4.4% CAGR
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-
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Vanadium Production by Raw Material source
Coproduct Slag Primary Ore Secondary Materials
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-
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
2011
2012
2013
2014
2015
2016 F
sct
2017 F
cst
2018 F
cst
2019 F
cst
2020 F
cst
MT
V/y
rVanadium 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
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Vanadium Consumption
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17%
12%
6%
48%
6%
3%
8%
V Consumption by Region 2015
Europe
North America
Japan
China
CIS
India
Other
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0,094
0,075
0,057 0,055 0,054 0,051
0,039 0,035
0,00
0,01
0,02
0,03
0,04
0,05
0,06
0,07
0,08
0,09
0,10K
gV/M
T St
ee
l
Specific Vanadium Consumption Rates 2015
North America Europe World Average China CIS Japan Other India
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30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
110 000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Met
ric
Ton
s V
pe
r Ye
ar
Vanadium Consumption 2001 to 2015
2001-2015 CAGR 6.1%
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-
0,50
1,00
1,50
2,00
2,50
3,00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Steel Production and Vanadium Consumption 2001 - 2015
Steel Production Vanadium Consumption
2001-2015
Steel Production 4.6% CAGR
Vanadium Consumption 6.1% CAGR
2009-2015
Steel Production 4.6% CAGR
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0,040
0,045
0,050
0,055
0,060
0,065K
g V
perM
T S
teel
World Specific Vanadium Consumption Rate
2001 - 2015 CAGR 1.4%
2010-2015 CAGR 4.4%
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-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual Change in Global Specific Vanadium Consumption Rates
Change in Specific Consumption 3 Moy. mobile sur pér. (Change in Specific Consumption)
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0%
2%
4%
6%
8%
10%
12%
14%
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
% o
f To
tal S
tee
l Pro
du
ced
Vanadium Steel Market Share
Assumes average vandium content in vanadium
steel 0.05%
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-
200
400
600
800
1 000
1 200
1 400
1 600
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
Cum
ula
tive V
anadiu
m C
onsu
med M
TV
Grid Level Vanadium Redox Battery Consumption of Vanadium
11/23/2016TTP Squared, Inc. Quebec Mines 2016 21
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.
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-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2011
2012
2013
2014
2015
2016
Fsc
t
2017
Fcs
t
2018
Fcs
t
2019
Fcs
t
2020
Fcs
t
MTV
/yr
Vanadium Consumption in Energy Storage
VRB Li Ion
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-
20 000
40 000
60 000
80 000
100 000
120 000
140 000
2011
2012
2013
2014
2015
2016 F
sct
2017 F
cst
2018 F
cst
2019 F
cst
2020 F
cst
MT
V/y
r
Vanadium Production & Consumption
Steel/Ti/Chemicals VRB Li Ion
Assumes:
Demand growth in traditional markets 6%CAGR
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Vanadium Supply/Demand History
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30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
110 000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Met
ric
Ton
s V
pe
r Ye
arVanadium Production and Consumption 2001 to 2015
Production Consumption
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$-
$5,00
$10,00
$15,00
$20,00
$25,00
-1,0
-0,5
-
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
V2O
5 P
rice (
US$/p
ound V
2O
5)
Cum
ula
tive Invento
ry C
hange (
Month
s of
Consu
mpti
on
)
Cumulative Vanadium Inventory Change vs V2O5 Price
Cumulative Inventory change Metal Bulletin V2O5 Price
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Vanadium Cash Cost of Production
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20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
$2,00 $3,00 $4,00 $5,00 $6,00 $7,00 $8,00
Pro
ducti
on C
apacit
y M
TV
per
Year
V2O5 Production Cash Cost (US$/pound V2O5)
Vanadium Industry Cost Curve 2016
Current market
Curr
ent
Mark
et
Pri
ce
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Vanadium Market Projection
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-
20 000
40 000
60 000
80 000
100 000
120 000
140 000
2011
2012
2013
2014
2015
2016 F
sct
2017 F
cst
2018 F
cst
2019 F
cst
2020 F
cst
MT
V/y
rVanadium Production & Consumption
Steel/Ti/Chemicals VRB Li Ion Production
Assumes:
Demand growth in traditional markets 6%CAGR
Supply growth of 12,000 MTV/yr with restart of Chinese stone coal mines
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$-
$5.00
$10.00
$15.00
$20.00
$25.00
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
US$
/Po
un
d V
2O5
Annual V2O5 Published Prices
Actual Inflated to 2015 US$
Source: Metal Bulletin
Actual Inflated
Mean 3.47$ 6.83$
Median 2.46$ 6.68$
High 16.25$ (2005) 20.24$ (2005)
Low 1.15$ (1968) 2.13$ (2002)
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Conclusions
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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 2020.
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
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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
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Thanks!
Terry Perles
TTP Squared, Inc.
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