Latest news with #vanadium
Associated Press
21-05-2025
- Business
- Associated Press
Arkansas Leaders Urge Pentagon to Immediately Purchase Vanadium for the National Defense Stockpile
Arkansas' two U.S. Senators and two Arkansas Congressmen are urging Pentagon Secretary Pete Hegseth to support expansion of vanadium production in the U.S. HOT SPRINGS, AR, UNITED STATES, May 21, 2025 / / -- Arkansas' two U.S. Senators and two Arkansas Congressmen are urging Pentagon Secretary Pete Hegseth to support expansion of vanadium production in the U.S. in order to counter the current effective control of vanadium supply chains by Russia and China. In two separate letters to Secretary Hegseth, Arkansas Senators Tom Cotton (R-AR) and John Boozman (R-AR) and Arkansas Representatives Bruce Westerman (R-AR) and French Hill (R-AR) urged Secretary Hegseth to direct the National Defense Stockpile to purchase and store at least 1 year's supply of vanadium in order to better insulate the U.S. military and commercial manufacturers from potential supply chain disruptions because of Russia's and China's control of 75% of global vanadium supply chains. U.S. Reps. Troy Balderson (R-OH), Rich McCormick (R-GA), Mike Kelly (R-PA) and Randy Weber (R-TX) also joined in urging action by Secretary Hegseth. Arkansas-based U.S. Vanadium is the leading producer of high-purity vanadium oxide in the U.S. and praised the Senators and Congressman for their leadership in raising this issue and promoting more domestic production of vanadium, which is a U.S. Government-designated critical mineral. 'We applaud the strong leadership of Senators Cotton and Boozman and Congressmen Westerman and Hill for alerting the Pentagon and the Trump Administration to the strategic vanadium vulnerability facing the U.S., and to take action to mitigate this threat by stockpiling vanadium and encouraging greater domestic production of this strategic material,' said US Vanadium Executive Chairman Mark Smith. 'We also greatly appreciate the continuing strong support provided to our company by the entire Arkansas congressional delegation and for their ongoing efforts to support economic growth and job creation in Arkansas.' 'US Vanadium's high-purity vanadium processing facilities in Arkansas are quite unique in the extremely high quality of product we are able to produce and the fact that our feedstock comes from post-industrial waste streams. This business model provides very attractive circular economics while also bolstering America's domestic production of this defense-critical mineral,' added US Vanadium CEO Darryll Castle. 'There is very strong industrial and national security logic behind having the U.S. National Defense Stockpile begin purchasing and storing significant amounts of US-produced vanadium products to better insulate the country from the risks associated with current global vanadium supply chains that are dominated by nations that don't necessarily have US interests at heart.' Arkansas' representatives in Washington are very influential on national security and critical minerals supply chain issues. Senator Cotton is Chairman of the U.S. Senate Intelligence Committee and also serves on the Senate Armed Services Committee; Senator Boozman serves on the powerful Senate Appropriations Committee and is Chairman of the Senate Agriculture, Nutrition, and Forestry Committee. Congressman Westerman chairs the House Natural Resources Committee, and Congressman Hill chairs the House Financial Services Committee and serves on the House Permanent Select Committee On Intelligence. The Senators wrote: 'Vanadium is an official USGS Critical Mineral required for ballistic missiles, jet engines and airframes, night vision, armor steel, body armor, combat vehicles, and other weapons systems critical to national defense. China and Russia control 75% of the global vanadium supply, leaving the Department of Defense open to significant disruption in its weapons supply chain. 'Vanadium compounds such as high purity vanadium pentoxide and ferrovanadium are critical to applications where steel and titanium are used, meaning they are a key element of US defense and essential civilian technologies. The United States consumed 14,000 metric tons of vanadium in 2024, with domestic production only accounting for 3,800 metric tons. The United States imports high purity vanadium pentoxide from Brazil and South Africa, but market conditions threaten those supply chains. Ferrovanadium supply chains rely on material converted in-part from Russian and Chinese material. Currently, no substitute materials exist. 'The United States risks being left without viable resources of this critical mineral if the Department and Defense Logistics Agency (DLA) do not take decisive action. We request DLA immediately begin to stockpile at least one year of military and essential civilian uses of both ferrovanadium and aerospace grade vanadium pentoxide in the National Defense Stockpile (NDS). We also request the Department work with the rest of the United States government to prioritize domestic production of vanadium compounds, to include reviewing environmental and other regulations that stifle domestic production.' The Congressmen reiterated the need for action on vanadium: 'When President Trump addressed the joint session of Congress on March 4, 2025, the President reiterated his support of dramatically expanding production of critical minerals and rare earth elements in America. Therefore, we ask your office to direct the DLA (Defense Logistics Agency) to stockpile at least one year of military and essential civilian uses of ferrovanadium and aerospace grade vanadium pentoxide. As our country reviews critical supply chains that are central to our competitiveness in the face of rising global threats, we urge you to consider the importance of vanadium and the concerning global supply chain of the industry.' More information on U.S. Vanadium, and vanadium technologies in general, can be seen on U.S. Vanadium's website: Contact: Jim Sims, [email protected], +1 (303) 503-6203 About U.S. Vanadium LLC U.S. Vanadium produces and sells a range of specialty vanadium chemicals, including the highest-purity vanadium pentoxide ('V2O5') and vanadium trioxide ('V2O3') in the world and ultra-high-purity electrolyte for vanadium flow batteries from its flagship facility in Hot Springs, Arkansas USA. The company is comprised of global leaders and investors in specialty chemicals and strategic materials, including in the mining, processing, purification, and sales and distribution of vanadium specialty chemicals. For more information, please go Jim Sims US Vanadium LLC +1 303-503-6203 [email protected] Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
National Post
14-05-2025
- Business
- National Post
Largo Reports Q1 2025 Financial Results with Continued Focus on Production Stability and Cost Reduction Efforts
Article content All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated. Article content Revenues of $28.2 million in Q1 2025 vs. 42.2 million in Q1 2024; Revenues per pound sold 1 of $6.04 in Q1 2025 vs. $6.91 in Q1 2024; Lower revenues are a result of continued downward pressure in vanadium prices and lower sales volumes Operating costs of $42.5 million in Q1 2025, 15% below Q1 2024 Adjusted cash operating costs excluding royalties per pound 1 of $3.88 in Q1 2025, 27% below Q1 2024, despite mining lower ore grades and decreased production rates Net loss of $9.2 million in Q1 2025, which included $7.0 million in non-recurring items vs. a net loss of $13.0 million in Q1 2024, which included $4.4 million in non-recurring items Basic loss per share of $0.14 in Q1 2025 vs. basic loss per share of $0.20 in Q1 2024 V 2 O 5 equivalent sales of 2,046 tonnes (inclusive of 158 tonnes of purchased material) in Q1 2025 vs. 2,765 equivalent tonnes sold (inclusive of 156 tonnes of purchased material) in Q1 2024 V 2 O 5 production of 1,297 tonnes (2.8 million lbs 2) in Q1 2025 vs. 1,729 tonnes produced in Q1 2024; Lower production in Q1 2025 was primarily due to impacts from mining lower-grade ore zones required as part the Company's open pit mine sequencing, reduced equipment availability on an expanded mine contractor fleet, and operational adjustments related to the kiln refractory replacement completed in Q4 2024, which required additional adjustments in early 2025 The Company produced 6,162 tonnes of ilmenite concentrate in Q1 2025 vs. 9,563 tonnes in Q1 2024, and sold 8,647 tonnes vs. 513 tonnes in Q1 2024 The Company maintains its revised 2025 production, sales and cost guidance and expects a return to more normalized production levels over the remainder of the year as throughput increases and operational turnaround initiatives progress Article content Vanadium Market Update Article content Vanadium markets in Europe and China remain weak, pressured by low steel and infrastructure demand and oversupply from Chinese and Russian producers, though aerospace demand is expected to pick up in the second half of 2025 U.S. ferrovanadium ('FeV') prices are holding at levels approximately 9% higher than at the start of 2025, supported by increased buying interest amid geopolitical tensions and policy shifts that have tightened supply dynamics The average benchmark price per pound of V 2 O 5 in Europe was $5.26 in Q1 2025, a 18% decrease from the average of $6.44 seen in Q1 2024; The average benchmark price per kg of FeV in Europe was $24.26 in Q1 2025, a 13% decrease from the average of $27.96 seen in Q1 2024 As of May 8, 2025, the average benchmark FeV price per pound of V was $15.25 in the U.S. (or approximately $33.62 per kg FeV), and as of May 9, 2025, the average benchmark price per pound of V₂O₅ was $5.20 in Europe Article content TORONTO — Largo Inc. (' Largo ' or the ' Company ') (TSX: LGO) (NASDAQ: LGO) today released financial results for the three months ended March 31, 2025. The Company reported quarterly vanadium pentoxide (' V 2 O 5 ') equivalent sales of 2,046 tonnes at an adjusted cash operating cost excluding royalties per pound 1 sold of $3.88. Article content Daniel Tellechea, Interim CEO and Director of Largo, stated: 'Our first quarter results reflect the impact of lower production levels, which constrained sales volumes, combined with continued pricing pressure in the vanadium market, all of which significantly affected our revenues and added pressure to our cash position. Despite this environment, Largo achieved a 15% reduction in overall operating costs compared to Q1 2024 as well as a 27% reduction in our adjusted cash operating costs excluding royalties 1, reflecting a continued focus on cost-control initiatives and operational efficiency improvements. We continue to actively advance our operational turnaround plan, implementing targeted initiatives aimed at further reducing costs and improving productivity at our Maracás Menchen Mine.' Article content He continued: 'Following the completion of our Storion Energy joint venture transaction, Largo is better positioned to allocate resources and focus on strengthening core mining operations in Brazil, while maintaining a long-term view on the potential of long duration energy storage solutions in the U.S. Looking ahead, securing near-term financing solutions remains a priority as we work to support our liquidity needs and ensure Largo is positioned to navigate ongoing market uncertainty.' Article content Key Highlights Article content During Q1 2025, the Company recognized revenues of $27.5 million (Q1 2024 – $42.2 million) from the sales of 2,046 tonnes of V 2 O 5 equivalent (Q1 2024 – 2,765 tonnes) as well as revenues from ilmenite sales of $0.7 million (Q1 2024 – $0.07 million). The Company recorded a net loss of $9.2 million in Q1 2025 compared with a net loss of $13.0 million in Q1 2024. The improvement was primarily due to the gain on disposal of interest in subsidiary of $5.2 million and a 15% decrease in operating costs. The Company's operating costs decreased by 15% to $42.5 million in Q1 2025 compared to 49.7 million in Q1 2024. The decrease in operating costs in Q1 2025 was largely driven by a 48% decrease in direct mine and production costs, reflecting a 25% decrease in vanadium sold in 2024, as well as the impact of the Company's previously announced initiatives to reduce production costs and improve productivity and the impact of inventory write-downs in the current and prior periods. The inventory write-down in Q1 2025 includes a write-down of produced vanadium finished products of $11.2 million and a write-down reversal of warehouse materials of $0.1 million. Cash operating costs excluding royalties per pound 1 were $6.54 per lb in Q1 2025, compared with $6.12 for Q1 2024. The increase seen in Q1 2025 compared with Q1 2024 is largely due lower sales volumes of in Q1 2025 and increased inventory write-downs. Mining in lower grade ore zones also impacted the financial performance. Additionally, lower ore mined resulted in stoppages at the kiln and plant which also contributed to increased costs in Q1 2025. The Company continues to make progress with a number of initiatives as part of its operational turnaround plan with the goal of reducing production costs and improving productivity ( see press release dated March 28, 2025). Adjusted cash operating costs excluding royalties per pound 1, which excludes the impact of inventory write-downs was $3.88 per lb sold in Q1 2025, compared with $5.33 for Q1 2024. Professional, consulting and management fees, other general and administrative expenses, and technology start-up costs in Q1 2025 decreased by 18%, 37%, and 82%, respectively, compared to Q1 2024, primarily due to reduced headcount and activity at LCE. On January 31, 2025 (the ' Closing Date '), the Company and affiliates of Stryten Energy LLC closed the previously disclosed transaction to establish Storion Energy LLC (' Storion '). Storion has commenced operations and is working to qualify their electrolyte product with potential customers. In addition, 13 employees of Largo Clean Energy Corp. (' LCE ') moved to Storion on the Closing Date, resulting in a reduced headcount at LCE at the end of Q1 2025. Subsequent to Q1 2025, production and sales in were 481 tonnes and 608 tonnes of V 2 O 5 equivalent, respectively, in April 2025, with 1,833 tonnes of ilmenite concentrate being produced during this period and 1,914 dry tonnes of ilmenite being sold. Article content The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2025 and 2024 and its management's discussion and analysis for the three months ended March 31, 2025 which are available on our website at or on the Company's respective profiles at and Article content Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers. Article content Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S. Article content Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol 'LGO'. For more information on the Company, please visit Article content This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; and the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products. Article content The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company's ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company's mine plan at the Maracás Menchen Mine; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner. Article content Forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved', although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on and available on from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&A which also apply. Article content Trademarks are owned by Largo Inc. Article content The Company uses certain non-GAAP measures in its press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-IFRS financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Article content Revenues Per Pound Article content These measures, along with cash operating costs, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. Article content The following table provides a reconciliation of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 23 as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content The Company's press release refers to cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency. Article content Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs. Article content Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Article content Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products. Article content Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Article content Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. Article content The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content Three months ended March 31, 2025 March 31, 2024 Operating costs i $ 42,477 $ 49,707 Professional, consulting and management fees ii 535 462 Other general and administrative expenses iii 179 279 Less: ilmenite costs and write-down i (2,220 ) (47 ) Less: conversion costs i (2,991 ) (2,023 ) Less: product acquisition costs i (2,357 ) (2,050 ) Less: distribution costs i (1,577 ) (1,818 ) Less: inventory write-down iv 1 446 Less: depreciation and amortization expense i (5,462 ) (8,077 ) Cash operating costs $ 28,585 $ 36,879 Less: royalties 1 (1,072 ) (1,673 ) Cash operating costs excluding royalties $ 27,513 $ 35,206 Less: vanadium inventory write-down v (11,206 ) (4,526 ) Adjusted cash operating costs excluding royalties 16,307 30,680 Produced V 2 O 5 sold (000s lb) 4,206 5,753 Cash operating costs per pound ($/lb) $ 6.80 $ 6.41 Cash operating costs excluding royalties per pound ($/lb) $ 6.54 $ 6.12 Adjusted cash operating costs excluding royalties per pound ($/lb) $ 3.88 $ 5.33 Article content As per note 20 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements less the increase in legal provisions of $347 (for Q1 2025) as noted in the 'other general and administrative expenses' section on page 6 of the Company's Q1 2025 MD&A. As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $10 for the three months ended March 31, 2025 ($nil in the same prior year period). As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for vanadium finished products, excluding amounts in note 4 above for vanadium purchased products. Article content The Company's press release refers to earnings before interest, tax, depreciation and amortization, or 'EBITDA', and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Article content Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities. Article content EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. Article content Three months ended March 31, 2025 March 31, 2024 Net loss $ (9,205 ) $ (13,006 ) Foreign exchange gain (loss) (5,791 ) 911 Share-based payments 110 290 Finance costs 2,151 1,812 Interest income (121 ) (306 ) Income tax expense 50 22 Deferred income tax recovery (2,666 ) (5,329 ) Depreciation i 5,683 8,724 EBITDA $ (9,789 ) $ (6,882 ) Inventory write-down ii 11,580 4,080 Write-down of vanadium assets 267 (114 ) Movement in legal provisions iii 347 491 Gain on disposal of interest in subsidiary (5,179 ) — Adjusted EBITDA $ (2,774 ) $ (2,425 ) Less: Clean Energy Adjusted EBITDA 1,778 2,484 Less: LPV Adjusted EBITDA 299 191 Mining Operations Adjusted EBITDA $ (697 ) $ 250 Article content As per the consolidated statements of cash flows in the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per then 'non-recurring items' section on page 7 of the Company's Q1 2025 MD&A. Article content Article content Article content Article content Article content Contacts Article content For further information, please contact: Article content Article content
ABC News
07-05-2025
- Business
- ABC News
Can WA Labor deliver election promise of $150m vanadium battery for Kalgoorlie by 2029?
Western Australia's vanadium industry literally went up in smoke in 2014. A fire in the processing plant at the Windimurra mine near Mount Magnet in the state's Midwest cost its owners millions, forcing its closure, and WA has not had an operating vanadium mine since. While there have been plans to reopen the mine and develop other projects, the lack of any home-grown vanadium producers looms as an obvious hurdle in a key promise by WA Labor at the recent state election. It committed to building Australia's biggest vanadium flow battery in Kalgoorlie-Boulder on the edge of the state's power grid, known as the South West Interconnected System (SWIS). Premier Roger Cook said during the election campaign that the 50-megawatt, $150 million battery would use locally sourced and processed vanadium. Under Labor's plan, the battery would be operational by 2029 — around the same time WA's last coal-fired power station is scheduled to close at Collie. Premier Roger Cook with Kalgoorlie MLA Ali Kent during this year's state election campaign. ( ABC Goldfields: Katrina Tap ) "Kalgoorlie will be at the forefront of the newest technology in energy storage," Mr Cook said. "It will not only incentivise and activate our battery industry out here in Kalgoorlie, it will also ensure Kalgoorlie is the beneficiary of a more resilient grid and an important part of our clean energy transition." Kalgoorlie-Boulder is one of Australia's biggest inland cities with a population of about 30,000 people. ( ABC Goldfields: Jarrod Lucas ) Opposition has doubts Since the 1980s, Kalgoorlie-Boulder has been connected to the Muja power station at Collie by transmission lines that run for more than 600 kilometres and have been vulnerable to State-owned utility Synergy introduced the The first of Synergy's big battery systems was completed at Kwinana in 2023. ( ABC News: Glyn Jones ) Opposition Energy spokesperson Steve Thomas welcomed Labor's vanadium battery plan for Kalgoorlie-Boulder but had doubts it would be delivered as promised. "It's entirely aspirational, and while we don't want to stomp on the aspiration, it is highly optimistic," he said. "The chances of the government delivering on the vanadium battery are roughly the same as the government closing down all its coal-fired power stations by 2029. I fully expect the timeframes to blow out on both." Mr Thomas doubts the vanadium battery will be delivered as promised. ( ABC News: James Carmody ) Small-scale trial underway While the Kalgoorlie-Boulder battery is its ultimate goal, the state government has begun trialling the vanadium flow technology on a smaller scale in WA's Kimberley. A 78-kilowatt battery — with about four times the capacity of an electric car — was commissioned last November at Kununurra. Horizon Power's future technology and innovation manager David Edwards said the battery had so far exceeded expectations in extreme temperatures. Horizon Power's project manager Dan Healy and future technology and innovation manager David Edwards. ( Supplied: Horizon Power ) "What we're trying to do is test the thermal resilience … we were looking for technologies that don't burn and experience thermal runaway," he said. "We specifically ordered this battery without a cooling system just to test how it would perform in a very hot environment … we're very pleased with it." Mr Edwards said the battery was providing vital information on how to integrate long-duration energy storage into the network. "It's completely new to us … we want to understand how it works and then think about how we can use it across wider WA," he said. Battery promise 'achievable' Graham Arvidson is CEO of ASX-listed Australian Vanadium, which operates a vanadium electrolyte plant in Perth and is progressing regulatory approvals for a vanadium mine near Meekatharra in WA's Midwest. The company provided electrolyte for the Kununurra battery trial using imported vanadium. "The reality is that for any large-scale battery, you're looking at sort of a two-year horizon to grid connect and that's just the process of getting the approvals," Mr Arvidson said. "In terms of the timeline, I think it's all achievable in line with how Labor presented it. It's just a question of how much local content can be included in that battery within the timeframe." Mr Arvidson (left) with WA Premier Roger Cook. ( Supplied: Vanadium Australia ) Mr Arvidson described vanadium flow batteries as a "proven technology" that had not been widely adopted because of high costs. "You're going to continue to see lots more of these batteries, not just in Kalgoorlie. Yes, they are better for hot climates, but ultimately economics generally wins," he said. "Flow batteries are not flammable, they'll last 30 to 50 years without degrading and are fully recyclable, and once the economics stack up, there's a pretty compelling reason to adopt these." Kalgoorlie-Boulder has experienced widespread outages in recent years. ( ABC Goldfields: Jarrod Lucas ) Lack of capacity Meanwhile, the mining industry in the Goldfields is crying out for more power. Ongoing issues with the grid were underlined during the official opening of a new $800 million rare earths refinery in West Kalgoorlie last November. Resources Minister Madeleine King and Lynas Rare Earths managing director Amanda Lacaze at the official opening of the new Kalgoorlie refinery in November 2024. ( ABC Goldfields: Jarrod Lucas ) In an embarrassing moment for WA Labor on the eve of the election, Federal Resources Minister Madeleine King was being taken on a tour of the control room with a media entourage in tow when the power went out. "Obviously, it's not perfect and we need to work to make things better," she remarked at the time. "There are a lot of demands on the system, and the challenge for government is making sure infrastructure keeps pace with industry." Kalgoorlie-Boulder Mayor Glenn Wilson said it was a common theme in the resources sector. Mr Wilson has been lobbying for improved power solutions since taking office in 2023. ( ABC Goldfields: Jarrod Lucas ) "If we had an extra few megawatts to spare, you could see how even one mine could increase production," he said. "That brings more royalties to the state, it brings more jobs to our region, and delivers a much stronger economy."
