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- Vanadium is a strategic metal experiencing surge in demand for its use in the storage of renewable energy.
- Europe is witnessing huge investments in green metals and renewable energy.
- Vanadium Resources operates one of the world’s largest and highest grade known vanadium deposits, Steelpoortdrift.
- The company’s listing on the Frankfurt Stock Exchange will provide exposure to the European investment community.
There is a lot going on in the European region on the energy front. The Russia-Ukraine conflict exposed how vulnerable the region is when it comes to energy security.
To overcome its dependency on energy imports, the region has been investing heavily in renewables, including wind and solar as well as battery energy storage. Moreover, to meet its emission reduction goals as pledged in the Paris Agreement on Climate Change (2015), the region has been focusing on green technologies to promote the inclusion of more and more renewable and clean energy in its basket.
Several companies engaged in battery metal mining and processing, including lithium, vanadium, nickel, cobalt, graphite, and alumina are heading to Europe to leverage the robust green economy initiatives of the region.
The latest in the series is Vanadium Resources Limited (ASX:VR8), which recently successfully listed on the Frankfurt Stock Exchange (DAX) under the stock code TR3.
VR8 is engaged in the exploration and development of the Steelpoortdrift Vanadium Project in South Africa. The company considers Steelpoortdrift as the world’s pre-eminent vanadium project as it has one of the world’s largest and highest-grade vanadium deposits.
Vanadium is gaining strategic importance in the green metals space as the commodity is expected to play a major role in the renewable energy storage. The use of vanadium redox flow batteries or VRFBs is an emerging market for the commodity.
Nearly 70% of all vanadium is currently produced as a co-product by the steel industry. Only 18% of vanadium used globally comes from mining projects. Vanadium is used in steel-making to provide strength. The green metal is also used in alloys which are used in the aircraft manufacturing and chemical sectors.
There has been a growing trend among automakers to use more vanadium in their cars as the metal makes the body stronger and lighter - desirable features for EVs.
It is evident that the demand for vanadium is slated to grow. Data from industry reports highlights that vanadium produced through mining is lot cheaper than the one produced by the steel industry. Also, currently, the number of companies engaged in vanadium mining is very less.
Amid the current upbeat scenario, VR8’s Steelpoortdrift Project seems to be well positioned to tap the lucrative opportunities. VR8 has one of the highest concentrate grades, a key reason as to why the PFS demonstrated it has one of the lowest opex costs for mining in the world.
VR8 in comparison to its peers (Image source: Company update)
One of the primary reasons firms opt for dual listing is to broaden exposure to investment community in those markets.
The latest development by VR8 enlarges the company’s investor reach and increases its exposure to European markets. The Frankfurt Stock Exchange is one of the largest stock exchanges in Europe. More than 50% of the total trades on this exchange are conducted through investors in countries outside of Germany.
Source: Kalkine Media
Well, VR8 is not the only ASX-listed company that opted for listing in Germany. Some of the other vanadium companies like Neometals Ltd (ASX:NEO|DAX: 9R9), Australian Vanadium Ltd (ASX:AVL|DAX:JT71) and TNG Ltd (ASX:TNG|DAX:HJI) have already marked their presence in the German capital market.
VR8 has already engaged Dr Reuter Investor Relations to provide customised IR programs. Dr Reuter, a Germany based investment relations group, specialises in assisting companies in attracting key target groups such as SmallCap-Investors, Family Offices, High-Net-Worth-Individuals and Retail-Investors, as well as Financial Press and Analysts.
Europe is a driving force behind the push for green metals and renewable energy. Vanadium Resources, backed by its tier 1 Steelpoortdrift Vanadium project, intends to play a major role in the new green era.
VR8 shares traded at AU$0.120 on the Australian stock exchange on 5 May 2022. The shares have gained 170% in the last one year.
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