AVL Share Price Jumped On Releasing Vanadium Energy Storage Update

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AVL Share Price Jumped On Releasing Vanadium Energy Storage Update

On 14 January 2019, Vincent Algar, the Managing Director of Australian Vanadium Limited (ASX: AVL), discussed vanadium in energy storage with Proactive Investors. In this discussion, the company has provided an update on developments in vanadium energy storage and the company’s subsidiary VSUN Energy.

Australian Vanadium Limited is an Australian based mining company engaged in exploring and producing of Vanadium in Australia. The company has four key assets: Gabanintha Vanadium, Coates Vanadium, Blesberg Lithium-Tantalum, Nowthanna Hill uranium and Vanadium.

Mr. Algar also discusses the innovations done in Vanadium Redox Flow Batteries (VRFB), and currently, the company was working on a definitive feasibility study (DFS) for its Gabanintha Vanadium Project which is in Western Australia.

On January 10, 2019, the company has announced the successful closure of the AVLO options which has expired on 31st December 2018. Now, the company has $9.68 million in cash, which enables them to accelerate the development of its Gabanintha vanadium deposit. The conversion of 204,599,484 options by 264 option holders during the final month has shown confidence in the company. By the end of this, the option conversion has added $6,161,878 to AVL’s cash reserves.

On 4 January 2019, Australian Vanadium Limited has announced to the market that one of its directors, Mr. Vincent James Algar who had a direct and indirect interest in the company, had acquired 692,307 fully paid ordinary shares. The Director acquired these shares at the cost of $13,486.

Quarterly Performance: During the last quarter, Vanadium prices exceeded 10 years high and touched the price of US$30/lb V2O5 during the period and is still in the same trend. The specific consumption of vanadium in the Chinese ferroalloy market has supported the Vanadium price. From 1 November, these changes have come into full effect. During the Quarter, the company has raised $343,000 through the exercise of 2 cent Listed Options. As at 30th September 2018, the company had cash and cash equivalents of $4.292 million.

FY18 Financial Performance: The Company’s revenue for the year stood at $219,325 in FY18, representing an upside of 19.84% over the $183,018 recorded in the corresponding period in 2017. AVL’s net loss for the year stood at $2,486,071 in 2018 ($2,077,633 in the previous year). The diluted loss per share for the year stood at 0.17 (cents per share).

On Balance Sheet front, Net Assets for the year stood at $24,090,428 in FY18, representing an upside of 27.31% over the $18,922,480 recorded in the corresponding period in 2017. As at 30 June 2018, the company had cash and cash equivalent of $5,152,782 ($1,524,171 in the previous year).

Stock performance: The shares of Australian Vanadium Limited closed at A$0.024, up by 9.091% at the end of day’s trading session. The market capitalization of the company stands at circa $39.28 Million with approximately 1.8 billion outstanding shares. In the time span of the previous six and three months, the stock delivered the returns of -51.11% and -46.34%, respectively. During the last one month, AVL delivered the negative return of 21.43%.


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