The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
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The Vertically Integrated Primary Vanadium Producer February 2019 Corporate Presentation
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 does not constitute a recommendation regarding any decision to sell or purchase securities in
the Company.
No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials 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 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 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 materials 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 Company’s
securities (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
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 technical information contained within this presentation has been reviewed and approved by Dr Luke Longridge, consulting geologist. Dr Longridge has a PhD in Geology (2012) and over 6 years'
experience working on vanadiferous magnetite deposits in the Bushveld Complex. He is a member of the Geological Society of South Africa and is a registered Professional Natural Scientist (Pr Sci.Nat.)
in South Africa. Dr Longridge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined under the JORC Code (2012). Dr Longridge consents to the inclusion in this presentation of the matters based on his information in the form and context in which it
appears.
2
Introducing Bushveld Minerals
800 Listed on AIM: Ticker: BMN
Basic ordinary shares 1 119 057 953
Share price:
700 Market Capitalisation US$556 million 37GBp
Warrants nil
600 Options nil
500 December 2017:
Bushveld Minerals
400 April 2017: Bushveld increase effective
Minerals acquires an interest in Vametco
effective 27% in to 59%
300
Vametco
September 2018:
Share price:
Bushveld Minerals
200 1.8 GBp
increase effective
interest in Vametco
100 to 74%
0
Jan - 17 Mar - 17 May - 17 Jul - 17 Sep - 17 Nov - 17 Jan - 18 Mar - 18 May - 18 Jul - 18 Sep - 18 Nov - 18 Jan - 19
Bushveld Minerals Market Cap (US$'m)
Source: Bloomberg, 24 February 2019 ; Link Asset Services, as at 31 January 2019
3
Company Overview
A growing, low cost, vertically integrated primary vanadium An energy storage project developer and component
producer manufacturer
• High grade ore for primary • Large, low cost vanadium • Electrolyte • Vanadium Redox Flow • MW scale energy storage
vanadium mining & processing processing manufacturing Battery (VRFB) project development
• Largest primary vanadium • Focus on expansion and • Co-location in Vametco Assembly & • Deployment models include
resource base in the world enhancement of brownfield process => significantly manufacturing PPAs, leasing models
operation lowering costs
The Group is targeting a 10,000 mtV production in the medium term Targeting initial 200MWh of Targeting 1,000 MWh opportunities by 2020
electrolyte p.a.
1. The Company also holds a 10.04% shareholding in AIM-listing AfriTin Mining Limited and a 100% holding in Lemur Holdings
Source: Bushveld Minerals
4
Bushveld Vanadium
• 440 Mt high grade open cast primary vanadium
• 440 Mt high grade open cast primary vanadium
A growing, low cost, vertically integrated primary vanadium resource base, Including ~55Mt combined reserves
resource base, Including ~55Mt combined reserves -
producer -the largest primary vanadium resource
the largest primary vanadium resource
• High
• High gradegrade of 1.5-2.0%
of 1.5-2.0% V2OV5 2among
O5 among
thethe highest
highest in in
the
the world
world
• Low cost primary vanadium processing capacity
• Low cost primary vanadium processing capacity
supplying ~3% of global vanadium market
supplying ~3% of global vanadium market
• High grade ore for primary • Large, low cost vanadium
vanadium mining & processing processing • Scalable
• Scalable processing
processing platform
platform withwith scope
scope forfor
additional
• Largest primary vanadium • Focus on expansion and additional
brownfield brownfield
capacity capacity expansions
expansions
resource base in the world enhancement of brownfield
operation • Targeting 10,000
• Targeting 10,000 mtVmtV of vanadium
of vanadium production
production in in
the
the medium
medium term term
The Group is targeting a 10,000 mtV production in the medium term
Source: Bushveld Minerals
5
Bushveld Vanadium
A growing, low cost, vertically integrated primary vanadium
producer
• 440 Mt high grade open cast primary vanadium
resource base, Including ~55Mt combined reserves -
the largest primary vanadium resource
3 Mokopane Vanadium
• High grade of 1.5-2.0% V2O5 among the highest in the
world
• Low cost primary vanadium processing capacity
supplying ~3% of global vanadium market
• Scalable processing platform with scope for additional
brownfield capacity expansions
2 Brits Vanadium
• Targeting 10,000 mtV of vanadium production in the 1
medium term Vametco
Source: Bushveld Minerals
6
Company Overview – Vametco Alloys
1. Vametco
• Low cost primary vanadium mine and processing plant
• CY2019 production >2,560mtV, guidance to be provided in Q1 2019 operational A growing, low cost, vertically integrated
update primary vanadium producer
• 142.4 Mt Resource with average in-magnetite grades of 1.96% V2O5 (26 Mt reserve
average in-magnetite grade of 1.96% V2O5)
• Solid cash generation capacity EBITDA >US$100m in CY2018
• Scope to grow production through operations optimisation programme 3 Mokopane Vanadium
Bushveld Vametco results (100%) CY18 CY17 CY16
Vanadium produced (mtV) 2,560 2,649 2,856
Vanadium sold (mtV) 2,573 2,721 2,810
FeV LMB price US$/Kg V 81.2 32.6 18.5
USD/ZAR exchange $=ZAR 13.2 13.3 14.7
2 Brits Vanadium
Revenue US$'m 192.2 79.1 51.7
1
EBITDA US$'m 107.5 23.9 3.3 Vametco
Production costs US$/kgV 19.7 16.6 12.9
Source: Bushveld Minerals
7
Company Overview – Brits Vanadium Project
2. Brits Vanadium Project
A growing, low cost, vertically integrated
• Outcropping, strike extension of the Vametco mine primary vanadium producer
• Drilling confirms V grades similar to Vametco (1.5 – 2.0% V2O5 in magnetite)
• Mineral resource estimate expected Q1 2019
3 Mokopane Vanadium
2 Brits Vanadium
1
Ore body extends West to East and dips in northerly direction at 20 degrees
1
Vametco
Source: Bushveld Minerals
8
Company Overview – Mokopane Vanadium Project
3. Mokopane Vanadium Project
• 298 Mt JORC, outcropping reserve and resource
• Vanadium in-magnetite grades of 1.75% V2O5 A growing, low cost, vertically integrated
• Positive PFS completed January 2016: Expect to be granted a New Order Mining primary vanadium producer
Right
Item Unit Value Development priorities
3 Mokopane Vanadium
Production Mt/yr 5,500 Three options under
Mineral Resource Mt 2981 consideration:
Ore Reserve Mt 28.5 • Supply ore to China
Grade (in-situ) % 1.4% • Supply ore to other brownfield
Grade (in-magnetite) % 1.7% plants
US$/kg • Develop greenfield integrated
Assumed Vanadium Price 33
FeV mine & processing plant
Initial Capital Costs US$ m 298 producing 5 500 mtV tpa V2O5
NPV @ 9% real US$ m 418 flake product 2 Brits Vanadium
IRR real % 25% 1
Vametco
2. The Mokopane Vanadium Project PFS, completed by MSA Group was based on the MML only which is 63Mt even though the overall project resource is 298 Mt
Source: Bushveld Minerals
9
Vanadium Fundamentals
Vanadium Price – Structural Changes Or Temporary?
Advent of grade 3 rebar in China Constrained supply, with short
Problems with production of
The new standard forced Chinese electrical power and resulting term reductions and limited new
rebar producers to start using load shedding in South Africa supply prospects
vanadium (grade 3) for high strength
+
negatively impacted vanadium
rebar applications production leading to the
2008 price spike
Russia’s vanadium Robust and growing demand
material disappeared, from steel sector with
the market price moved Highveld Steel significant upside from energy
US$/t
up and thereafter Russia & Vanadium storage application uses
restarted production stops
production
A sustained structural market
A sustained structural
deficit, with significant price
market deficit, with
upside
significant price upside
Source: Metal Bulletin, TTP Squared
11Concentrated Supply
SALT ROAST FLOWSHEET (14% of Global Vanadium Feedstock Production)
Vanadium feedstock Three key steps:
production by source • Grade a key barrier to entry
• Salt roasting of magnetite concentrate with sodium salts
at ~1,200oC to form water soluble sodium vanadate • Three active primary producers – two in SA and one in
material Brazil
12% 14%
• Leaching, filtration, desilication, precipitation followed • Primary driver of economics = VANADIUM
by reaction to form vanadium pentoxide/trioxide • Financing remains a challenge even for primary
• Vanadium pentoxide/trioxide is converted into FeV or greenfield projects
NV or other vanadium end products
74%
STEEL PLANT CO-PRODUCTION FLOWSHEET (74% of Global Vanadium Feedstock Production)
Primary
• Magnetite concentrate is smelted in a blast furnace/EAF • Primary of economics = STEEL & IRON ORE
Co-production • TiO2 is extracted as a slag, while vanadium reports with • Capex = key barrier to entry is capex – 5x as much
Secondary hot metal capex as primary production
• Vanadium extracted as a slag through controlled re- • Concentrated in China and Russia
oxidation of hot metal, which is further processed into
• 93% of V production in China, 200% of V production in
pig-iron/ steel
Russia
• Vanadium slag, with elevated vanadium grade, is
• Process produces a V slag further processed into
processed through primary vanadium extraction (salt
vanadium through primary V process
roast flowsheet)
Source: Bushveld Minerals analysis
12Concentrated Supply
High input • Low Fe gradeVanadium Characteristics And Uses
Characteristics Applications
• Fabricability Steel
• High strength-to-weight ratio • The steel industry
• Corrosion resistance accounts for ~90% of
total vanadium
• Weldability
consumption
• Enforcement of standards
Construction steel - Alloys for aerospace industry
driving up demand
rebar
Chemicals
• Ability to exist in 4 different • Electrolyte accounted for
oxidation states ~2% of 2017 global
• Water-soluble vanadium consumption,
but could grow up to
• Resistant to attack by alkalis,
44% by 2027 as VRFBs
hydrochloric acid, sulphuric gain momentum
acid, and salt water Long duration utility scale batteries
Source: Bushveld Minerals analysis, Roskill
14Vanadium Demand - Steel Sector Demand Drivers Are Robust
0.12 2017 Vanadium use in steel
• Strong correlation between economic
development and vanadium intensity of use in
steel 0.1 0.097
• The steel sector accounts for ~90% of the 0.078
0.08
vanadium consumption
KgV/MT steel
• Industrialised economies, such as the USA, 0.054 0.051
0.06 0.053 0.048
typically use more vanadium per tonne of steel
than emerging economies such as India and 0.038
China 0.04 0.035
• As emerging markets develop, the gap will 0.02
narrow, driving up vanadium intensity of use and
thus vanadium demand
0
North Europe CIS World Japan China Other India
America Average
Source: Bushveld Minerals analysis, TTP Squared
15Greater Enforcement In China Of Existing And New Rebar Standards Driving
Greater Vanadium Intensity Of Use In Steel
2010 Code for Design of Concrete Structures 2011 Update of Code for Construction 2015-2017 Quenching and tempering techniques 2018 China’s new high-strength
(GB50010-2010) Quality Acceptance of Concrete Structures used by rebar producers to minimise use of rebar standard introduced in January
issued in August 2010 and took effect from 1 (GB 50204 – 2002) – issued in December alloying elements, thus blunting impact of codes 2018, effective November 2018
July 2011 2010 and took effect from 1 August 2011 on vanadium demand
China Crude Steel and Vanadium
2010 - 2014 2014 - 2017 China Rebar Product Structure
0.45%
1,000,000 60,000 CAGR CAGR
900,000 100% 19.36
50,000
800,000 5.2% 0.8% 90% %
% of China Rebar Structure
700,000 80%
40,000
Vanadium (tV)
600,000 3.9% 1.5% 70%
Steel (kt)
500,000 30,000 60% 67.31
Quenching & tempering %
400,000 9.8% -3.1% 50%
techniques among steel 20,000
300,000 40%
plants leads to lower V
200,000 consumption 30% 6.49%
10,000
100,000 20%
0 0 10%
3.77%
0%
10
11
12
13
14
15
16
17
20
20
20
20
20
20
20
20
05
07
09
11
13
15
17
20
20
20
20
20
20
20
China crude steel production (LHS) (kt) China crude steel consumption (LHS) (kt)
Gr.1 - 235MPa Gr.2 - 335MPa Gr.3 - 400MPa
China vanadium consumption (RHS) (tV) Gr.4 - 500MPa Gr.5 - 600MPa
Source: Bushveld Minerals analysis, TTP Squared
16Vanadium In Energy Storage
Vanadium-Flow Batteries: The The potential for the technology
Energy Storage Breakthrough to be the second most deployed
We've Needed ESS battery in the world is there
Although steel sector
anchors demand, global
adoption of Vanadium
Redox Flow Batteries could
Vanadium-flow batteries used in see global vanadium
large-scale renewable demand double by 2027
integration projects are already A revolution [is] coming in
cost competitive not only against vanadium redox flow batteries
lithium-ion, but also against
natural gas turbines Robert Friedland, Chairman,
Ivanhoe Mines
Source: DNV GL Energy Transition Outlook 2018
17“Electrification Of Everything”
World energy demand by carrier, EJ/year
500
450
400
• The share of electricity in
350
the global energy mix has
300 risen from 10% in 1980
250 to 20% today
200 • It will more than double
150 to 45% by 2050
100
50
0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Coal Oil Natural Gas Biomass Direct Heat Electricity Solar Thermal
Source: DNV GL Energy Transition Outlook 2018
18Growing Demand For Stationary Energy Storage
World final electricity demand by sector, PWh / year
Primarily electric
60
vehicles, including
55 cars buses and
trains
• Stationary, grid-
50 connected (residential,
45 commercial and
40 industrial users) will
35 account for >70% of
30 world final electricity
25
demand
20 • Primarily electric
15 vehicles, including cars
Primarily consumer
10 electronics buses and trains will
5 account for almost 20%
--
1980 1990 2000 2010 2020 2030 2040 2050
Transport Buldings Manufacturing Other
Source: Navigant
19Growing Demand For Stationary Energy Storage
Total Energy Storage Market, MWh
900,000
800,000 • Consumer electronics
have dominated energy
700,000
storage in the past
600,000
• Going forward,
500,000
however, transportation
400,000 and stationary energy
300,000 storage will dominate
energy storage, with
200,000
stationary energy
100,000 storage the most
0 nascent and rapidly
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 growing
Electric Vehicles Consumer Electronics Stationary Storage
Source: Navigant
20Utilities, Commercial And Industrial Sectors To Dominate Stationary Storage
Annual Installed Stationary Energy Storage Capacity and • Stationary energy
Deployment Revenue by Market Segment storage demand is
growing rapidly (58%
120,000 60 p.a.) and will exceed
Total Energy Storage Market, MWh 468GWh by 2027 on a
100,000 50
cumulative, installed
900,000
800,000 80,000 40 basis, with annual
additions forecast to
US billion
700,000
MWh 60,000 30
600,000 reach 80GWh by 2025
500,000
40,000 20
400,000 • Utility scale and
300,000
20,000 10 commercial and
200,000
100,000
industrial applications
0
0 0 will account for > 85%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Electric Vehicles Consumer Electronics Stationary Storage Utility-Scale Commercial & Industrial Residential Total Revenue
of energy storage
applications
Note: Utility segment includes thermal storage technology
Source: Navigant Research
21Global Energy Storage Usage Moving From Short To Long Duration…
Compound annual growth rate (CAGR) from 2018 to 2027 2027 global forecast Share of 2027market
% MWh %
64.4%
90%
Generation Capacity 45.2% 61,596
Long duration
T&D Asset Optimization 43.4% 24,588 25.8% energy storage
Renewables Ramping/Smoothing 52.1% 7,575 7.9%
10%
Frequency Regulation 35.7% 1,703 1.8% Short duration
energy storage
Volt/VAR Support 32.1% 122 0.1%
0% 20% 40% 60%
Source: Navigant
22Long Duration, Large Scale Storage – The Sweet Spot For VRFBs
Vanadium Redox Flow Battery • Long lifespan cycles: Ability to repeatedly charge / discharge over 35,000 times for a
lifespan of over 20 years
• 100% depth of discharge: Without performance degradation is unique to VRFBs
• Lowest cost per kWh when fully used at least once daily makes VRFBs today cheaper than
Li-ion batteries
• Safe, with no fire risk from thermal runaway
• 100% of vanadium is re-usable upon decommissioning of the system
• Scalable capacity to store large quantities of energy
• Flexibility: Allows capture of the multi-stacked value of energy storage in grid applications
• Simple architecture
• Large vanadium content • Very fast response time of less than 70ms
• Non degradation of vanadium implying high • No cross-contamination: Only one battery element, unique among flow batteries
residual value
Source: IRENA
23Long Duration, Large Scale Storage – The Sweet Spot For VRFBs
Key categories to
consider VRFB Lithium-ion
• Excellent for long duration energy applications (4 or • Excellent for power applications
1. Technical more hours per day) • Degradation accelerates with frequent use, temperature and deep
performance • Lower roundtrip efficiency but longer life and no discharges
degradation • Usage limitations imposed by manufacturers
• No risk of fire from thermal runaway • Thermal runaway creates risk of fire and smoke that must be
2. Safety • Electrolyte spillage is main risk managed
• Restrictions on deployment in some locations
• Yet to experience economies of scale • Significant cost decreases in recent years due to EV-oriented
3. Cost • High contribution of vanadium is both a risk and R&D and capacity growth
an opportunity • Cost reductions expected to slow
• More nascent technology • Growing acceptance from deployment in frequency control
4. Market
• Challenge from fragmented supply market dominated markets
acceptance
by start-up companies • Credibility from large, consolidated cell manufacturers
24Implications For Vanadium Demand Are Significant
100,000 96,250 mtV 27,500 MWh • While the market share
• While the market share of
2017 vanadium production of 92,392 mtV of VRFBs compared to
VRFBs compared to other
90,000 other energy storage
energy storage
CAGR 41.9% technologies is a key
82,280 mtV 18,700 MWh technologies is a key
assumption, the ultimate
80,000 assumption, the ultimate
size and growth rate of
size and growth rate of the
CAGR 39.9% the stationary energy
70,000 stationary energy storage
storage market has even
market has even greater
greater impact
60,000 impact
50,875 mtV 9,250 MWh
• Recent trends to revise
mtV
50,000 • Recent trends to revise
energy storage forecasts
energy storage forecasts
upward imply that
40,000 upward imply that
vanadium demand from
CAGR 33.9% vanadium demand from
VRFBs may be greater
30,000 VRFBs may be greater than
than expected even
expected even under
under “aggressive
20,000 “aggressive forecasts”
forecasts”
CAGR 13.2%
10,000 8,000 mtV 1,454 MWh • Within 10 years demand for
2,826 • Within 10 years demand
vanadium by energy
for vanadium by energy
-- storage could equate to 50-
storage could equate to
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100% of today’s global
50-100% of today’s
market
global market
Baseline (Roskill) Vanadium 101 scenario Navigant assumptions BMI assumptions
Source: Bloomberg New Energy Finance (BNEF), BMI, Bushveld Energy analysis, Bushveld Minerals analysis, Navigant, Roskill, TTP Squared
25Vanadium Use In Energy Storage May Exceed Expectations
Energy forecasts for new technologies may significantly undervalue actual growth potential
Solar PV growth continues to exceed forecasts The same phenomenon is occurring with energy storage,
Annual PV additions: historic data vs IEA WEO predictions where Bloomberg New Energy Finance has more than
in GW of added capacity per year doubled its 2030 energy storage forecast in two years
300
+115%
250
200
150
100
50
0
2016 forecast 2018 forecast
Source: BNEF Energy Outlook 2016, BNEF Energy Outlook 2018, PVMA, World Economic Outlook, www.visualcapitalist.com
26Vanadium In Energy Storage
1 The VRFB market opportunity is large and has the potential to be 10 times the size of the current vanadium
commodity market
2 The robust steel demand anchor for vanadium is critical to support vanadium supply development
3 Bushveld Minerals is uniquely positioned to effectively address VRFB adoption hurdles
4 …and in the process support the diversification and strengthening of vanadium demand profile….
5 …while capturing a compelling commercial opportunity...
6 …and establishing a natural hedge for vanadium production against future vanadium price downswings
27Thus A Vertically Integrated Business Model Unlocks Significant Value
A growing, low cost, vertically integrated primary vanadium An energy storage project developer and component
producer manufacturer
• High grade ore for primary • Large, low cost vanadium • Electrolyte • VRFB assembly & • MW scale energy storage
vanadium mining & processing processing manufacturing manufacturing project development
• Largest primary vanadium • Focus on expansion and • Co-location in Vametco • Deployment models include
resource base in the world enhancement of brownfield process => significantly PPAs, leasing models
operation lowering costs
The Group is targeting a 10,000 mtV production in the medium term Targeting initial 200MWh of Targeting 1,000 MWh opportunities by 2020
electrolyte p.a.
Leveraging its low-cost scalable primary vanadium production platform to unlock the substantial opportunity in the energy
storage market through vertical integration
Source: Bushveld Minerals
28Bushveld Energy – Unlocking The Energy Storage Opportunity
An energy storage project developer and component manufacturer
• •Bushveld
BushveldEnergy is focused
Energy is focusedonon
developing
developingand promotingthe
and promoting the
role
roleofofvanadium
vanadium in inthe
thegrowing
growing
global
globalenergy
energy storage market
storage market
through
throughapplication
application ininVRFBs
VRFBs
• Electrolyte manufacturing • VRFB assembly & manufacturing • MW scale energy storage project
• •ItsItslong
longterm
term vision
vision isisto
tobecome
become development & Direct VRFB sales
a significant electricity
a significant electricity storagestorage • Initial 200MWh • Partnership or investment with
• Deployment models include PPAs,
provider in Africa by 2020, electrolyte facility in East VRFB firms and local partners
provider in Africa by 2020, London, SA
leasing models
meeting the demand for utility • Medium term focus, once local • 1st project with Eskom installed
meeting the demand for
scale energy storage in Africa byutility • Designed to convert market for storage is established • Significant success to date in
scale energySouth
leveraging storage in Africa by
Africa-mined vanadium feedstock creating the market, especially in
from Vametco South Africa
leveraging South vanadium
and beneficiated Africa-mined
and beneficiated vanadium
Targeting initial 200MWh of Targeting 1,000 MWh opportunities by 2020
electrolyte p.a.
Source: Bushveld Minerals
29Bushveld Energy – Unlocking The Energy Storage Opportunity
An energy storage project developer and component manufacturer
• •Bushveld
BushveldEnergy is focused
Energy is focusedonon
developing
developingand promotingthe
and promoting the
role
roleofofvanadium
vanadium in in the
thegrowing
growing
global
globalenergy
energy storage market
storage market
through
throughapplication
application ininVRFBs
VRFBs
• Electrolyte manufacturing • VRFB assembly & manufacturing • MW scale energy storage project
• •ItsItslong
longterm
term vision
vision isisto
tobecome
become development & Direct VRFB sales
a significant electricity
a significant electricity storagestorage • Initial 200MWh • Partnership or investment with
• Deployment models include PPAs,
provider in Africa by 2020, electrolyte facility in East VRFB firms and local partners
provider in Africa by 2020, London, SA
leasing models
meeting the demand for utility • Medium term focus, once local • 1st project with Eskom installed
meeting the demand for
scale energy storage in Africa byutility • Designed to convert market for storage is established • Significant success to date in
scale energySouth
leveraging storage in Africa by
Africa-mined vanadium feedstock creating the market, especially in
from Vametco South Africa
leveraging South vanadium
and beneficiated Africa-mined
and beneficiated vanadium
˜US$10 m capex Assembly facilities have low No capex – main cost salaries
capex intensity ˜US$15-20m of project development team
Source: Bushveld Minerals
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2018 - bank battery
25 October programme
2018: Eskom, the South African utility, has launched a two-phase Sign in
1,440MWh distributed battery storage programme to cover the ...
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Eskom plans 800 MWh of battery storage by Dec 2019
https://renewablesnow.com/.../eskom-plans-800-mwh-of-battery-storage-by-dec-2019...
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Oct 26, 2018 - Eskom plans 800 MWh of battery storage by Dec 2019 ... Eskom's battery
programme is to be realised with financing from the AfDB and the ...
World Bank Group Commits $1 Billion for Battery Storage to Ramp Up ...
Missing: announces | Must include: a
nnounces
https://www.worldbank.org/.../world-bank-group-commits-1-billion-for-battery-stora... • Electrolyte manufacturing • VRFB assembly & manufacturing • MW scale energy storage project
Sep 26, 2018 - The $1 billion in World Bank Group financing is expected to mobilize another $4 billion
Eskom to launch batteryandstorage
development & Direct VRFB sales
public andprogramme | News | IJGlobal
in concessional climate financing private investments. The program aims to finance
• Initial 200MWh • Partnership or investment with
https://ijglobal.com/articles/138345/eskom-to-launch-battery-storage-programme
17.5 gigawatt hours (GWh) of battery storage by 2025 – more than triple the 4-5 GWh currently
• Deployment models include PPAs,
installed
17 hoursinago
all developing countries.
- South Africa's Minister of Energy, Jeff Radebe, has announced that Eskom will launch electrolyte facility in East VRFB firms and local partners
a tender for the first phase of a 360MW distributed battery ... leasing models
Powering New Markets for Battery Storage - World Bank Group
London, SA
• Medium term focus, once local • 1st project with Eskom installed
SOUTH AFRICA: Eskom launches technology to store energy | Afrik 21
https://www.worldbank.org/en/news/.../powering-new-markets-for-battery-storage
Sep 26, 2018 - A new World Bank Group (WBG) program aims to close that gap. “Accelerating Battery
https://www.afrik21.africa/en/south-africa-eskom-launches-technology-to-store-energy/ • Designed to convert market for storage is established • Significant success to date in
Storage for Development” is a new, first-of-its-kind global program to accelerate the deployment of
Nov 7, 2018 - South Africa is planning to design a new energy storage battery. The initiative will boost
battery storage for energy systems in developing and middle-income countries. vanadium feedstock creating the market, especially in
the use of renewable energy and reduce coal ...
from Vametco South Africa
Accelerating Battery Storage for Development - World Bank Group
USTDA Supports Energy Storage in South Africa, Creating ...
https://www.worldbank.org/en/topic/energy/brief/battery-storage-program-brief
https://ustda.gov/.../ustda-supports-energy-storage-south-africa-creating-opportunities-...
Oct 15, 2018 - The World Bank Group (WBG) has committed $1 billion for a program to accelerate
Aug 22, 2018in-battery
investments USTDAstorage
Supports Energypower
for electric Storage in South
systems in ...Africa, Creating ... “Projects and
technologies under USTDA's program undergo significant ... with Eskom but also municipal power
Targeting initial 200MWh of Targeting 1,000 MWh opportunities by 2020
systems in South Africa and across the continent.”. electrolyte p.a.
Accelerating Battery Storage for Development - World Bank Group
https://www.worldbank.org/en/news/.../accelerating-battery-storage-for-development
29
Sep Renewable Energy
26, 2018 - Accelerating Markets
Battery You
Storage for Need to...Watch
Development. OutGroup
World Bank For Commits
in 2019$1 ...
https://www.greentechmedia.com/.../29-renewable-energy-markets-you-need-to-watch...
Billion for Battery Storage to Ramp Up Renewable Energy ...
Source: Bushveld Mineralsutility Eskom has announced a two-phase plan for 1.4 gigawatt- hours of
31
Nov 20, 2018 - The national
energy storage at its sites throughout the country, he said.
Energy Home - World Bank GroupThe Battery Energy Storage Opportunity Is Real And Now…
1. South Africa’s integrated resource plan has bold
opportunities for battery energy storage: An energy storage project developer and component manufacturer
• 15,000MW of new renewable electricity
generation by 2040
• 9,000 MW in peaking generation capacity
with provision for alternative technologies
(such as battery energy storage) to
participate
reipppp round 6 Sign in
• Licencing threshold for self-generation
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• Electrolyte manufacturing • VRFB assembly & manufacturing • MW scale energy storage project
door for many commercial and industrial
About 12,500 results (0.36 seconds)
development & Direct VRFB sales
energy users to self-generate • Initial 200MWh • Partnership or investment with
South African Minister of Energy announces REIPPPP projects • Deployment models include PPAs,
https://www.miningreview.com/south-african-minister-energy-announces-reipppp-pro... electrolyte facility in East VRFB firms and local partners
leasing models
Apr 5, 2018 - As in most of the bid rounds, the Northern Cape will receive the majority of the
London, SA
2. Continuing Renewable Energy IPP Programme
investment with 15 new wind, solar PV and CSP projects, the ...
• Medium term focus, once local • 1st project with Eskom installed
continues
New South African to add renewable
REIPPPP energyfortoNovember
bid round scheduled the grid... • Designed to convert market for storage is established • Significant success to date in
creating opportunities for battery storage
https://newsbase.com/.../new-south-african-reipppp-bid-round-scheduled-november vanadium feedstock creating the market, especially in
New South African REIPPPP bid round scheduled for November. 6 June 2018. AfrElec - Africa Power
Monitor. 06 June 2018 Week 22 Issue 157. South Africa's ... from Vametco South Africa
South Africa to launch new 1.8 GW REIPPP round this year – pv ...
https://www.pv-magazine.com/.../south-africa-to-launch-new-1-8-gw-reippp-round-th...
Jun 1, 2018 - After signing the 27 outstanding renewable PPAs assigned in previous rounds in April,
Targeting initial 200MWh of Targeting 1,000 MWh opportunities by 2020
the South African government believes the new ... electrolyte p.a.
People also ask
Source: Bushveld Minerals
What is Reippp? 32Bushveld Minerals Investment Proposition
1 2 3
Positive price outlook The largest primary vanadium resource base (439.6Mt Brownfield infrastructure
as a result of combined resource create scope for low
sustained structural ~2% in-magnetite V2O5 amongst the highest in the capex and quick scale-up
deficit world of production capacity
1st quartile cost curve position
4 5 7
Vertical integration with high Management team Shareholder Return
quality, low cost production base combines more than Committed to delivering
allows us to be a key player in the 100 years’ experience attractive returns to
multibillion-dollar energy storage shareholders
industry through VRFBs 6
Concentrated global supply
with South Africa as the largest
host of high-grade primary
vanadium resources
33Several Catalysts Along Its Integrated Business During CY2019
A growing, low cost, vertically integrated primary vanadium An energy storage project developer and component
producer manufacturer
• Maiden Mineral Resource Estimate at • Vametco optimsation • Construction of • Strengthen ties • Commissioning first
Brits Vanadium programme to maximise V electrolyte with VRFB OEM VRFB system at
• Mining Right for the Mokopane throughput production manufacturing plant Eskom (SA’s utility)
Vanadium Project • Brownfield processing • Deployment of V • Secure MW scale
• Commence operations at Mokopane capacity expansion electrolyte rental product mandates
Targeting initial 200MWh Targeting 1,000 MWh opportunities by 2020
The Group is targeting a 10,000 mtV production in the medium term
of electrolyte p.a.
• Outline a capital allocation framework and dividend policy in Q1 2019
• List on the Johannesburg Stock Exchange by the end of CY19
Source: Bushveld Minerals
34Bushveld Minerals Corporate Video: https://www.brrmedia.co.uk/broadcasts/5a5626af9ed50c2f9b04679c/bushveld-minerals-an-emerging-
integrated-vanadium-producer
Vanadium 101 Webinar: https://edge.media-server.com/m6/p/i2wo6bk9
Vanadium 101 Slides: http://www.bushveldminerals.com/wp-content/uploads/2018/05/Bushveld-Minerals-Vanadium-101_Final.pdf
Energy Storage 101 Webinar: http://webcasting.brrmedia.co.uk/broadcast/5bd2eae5b01efb6b20c2f9eb/5bd348eba21632633b00003d
Energy Storage 101 Slides: http://www.bushveldminerals.com/wp-content/uploads/2018/11/Energy-Storage-Vanadium-Redox-Flow-
Batteries-101.pdf
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