Investment Case

A green commodity for the future with attractive fundamentals

• Medium to long-term market fundamentals remain attractive.
• Vanadium demand is underpinned by its use as a strengthening alloy in steel sector, which is expected to drive demand growth at a Compound Annual Growth Rate (CAGR) of 2.7 % through to 2030.
• Vanadium increases the efficiency of the steel sector, while reducing greenhouse gas emissions.
• Vanadium demand from applications in VRFBs is expected to grow by a CAGR of 56.7 % by 2030.
• Supply is concentrated, constrained and limited new primary supply is expected from greenfield projects.

Solid Asset base

• The Company’s 548 Mt (100 % basis) resource is one of the largest primary vanadium resource bases and offers significant growth potential. Bushveld Minerals’ ore bodies comprise large, long-life, opencast deposits, with grades of 1.6 – 2.0 % V2O5 in-magnetite, which are among the highest in the world.
• The Group owns two of the world’s four operating primary production processing facilities, which are low-cost and scalable operations. Vametco and Vanchem were acquired for significantly less than the cost of building a primary greenfield production facility of the same scale.
• Production platform with a diverse range of vanadium products which gives us production flexibility to maximise sales and profit margins based on product and market demand.

Significant production growth

• Bushveld has the capacity to scale up production, increasing its share of the vanadium market.
• The Company aims to achieve a steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a. by the end of 2022. Studies are under way to increase production to a steady state production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in the medium term and to a steady state production run rate 8,400 mtVp.a. in the longer term.

Vertical Integration

• Bushveld Minerals’ vertical integration business model allows us to mine, process and manufacture vanadium-based products in a single value chain.
• The Company uses its low-cost scalable production base to build a significant downstream vanadiumbased energy storage platform, thus participating in a rapidly-growing industry.
• Vertical integration is key, both to ensure future vanadium demand from energy storage and to unlock significant economic opportunities for the Company across its value chain.
• This includes BELCO, the construction of one of the largest publicly announced Vanadium electrolyte plants’ outside of China with an expected initial capacity of 8 million litres of vanadium electrolyte per annum (using up to 1,100 Mtvp.a.) and capability to scale up to 32 million litres at the same location.
• The growth of the VRFB industry can support vanadium demand and contribute to minimising volatility in the vanadium price. – The Group has diverse revenue streams coming from the steel, chemicals and energy markets, enabling it to maintain its solid position throughout the commodity cycle.

Sustainability – value beyond compliance

• Bushveld Minerals is dedicated to maintaining sustainable mining and processing practices across all of its operations and projects. This includes ensuring employees enjoy a healthy and safe working environment, that it operates in an environmentally and socially-responsible manner, and that it adds meaningful value to all stakeholders.
• The Company is committed to reducing the environmental footprint of its mining and processing operations by reducing the carbon intensity of its own operations. Achieved, through the implementation of renewable energy and VRFB storage solutions at its operations, the Company has commenced a journey to reducing the carbon footprint associated with its energy consumption.
• Bushveld Minerals’ products play an important role in global decarbonisation efforts through its applications in both the steel and energy sectors.
• As a strengthening alloy in steel making (0.2 % of vanadium added to steel doubles its tensile strength), vanadium increases the efficiency of the steel sector, while reducing the carbon footprint of steel.
• Vanadium applications in stationary energy storage, through VRFBs, promotes the integration of renewable energy sources, while promoting the efficiency of electricity grids, thereby playing a key role in the energy transition. Further, the VRFB technology supports the global transition to clean energy and produces lower life cycle CO₂ emissions than competing storage technologies.
• The Company actively promotes the principles of the circular economy. It is scaling up the necessary technical and commercial parameters to ensure that vanadium in energy storage is re-used.

Shareholder Returns

• Bushveld Minerals is committed to delivering attractive returns to its shareholders. It applies a consistent and disciplined approach towards capital allocation to manage the Group’s growth initiatives.