Australian Vanadium is the sole owner of the  Gabanintha Project near Meekatharra in Western Australia. 

Australian Vanadium Limited (ASX:AVL) reports it has signed a non-binding memorandum of understanding (MoU) with the Win-Win Development Group, private steel and alloy producer based in Chengdu, China. Australian Vanadium is the sole owner of the Gabanintha project near Meekatharra in Western Australia.

As quoted from the press release:

Highlights:

  • An MoU has been signed with Win-Win Development Group, a Chinese steel and alloy product company.
  • The agreement initiates discussions surrounding project finance and offtake of vanadium oxides from Gabanintha
  • Products to be used in production of vanadium carbon nitride (VCN) for use in area of micro-alloy rebar production.
  • Win-Win’s project timeline is strongly aligned with AVL’s planned development of Gabanintha.
    Relationship initially built by AVL’s China consultancy Mastermines.
  • New Chinese rebar standard, due to be implemented in October 2018, requires additional use of vanadium with supplies inside China strongly constrained and VCN is the preferred alloy to meet the specification.

Win-Win is currently building a 5,000tpa vanadium carbon nitride (VCN) production line which requires approximately 7,000-8,000tpa of 98 percent V₂O₅. The first stage will require 2,000-3,000tpa and be operational in 2019 and the second stage is planned for the following year. Win-Win has a shareholding in an operating production line currently producing 2,400tpa of VCN products for existing steel companies.

The timing of the Win-Win development and full production has strong synergies with the planned development of the Gabanintha vanadium project.

“The Win-Win team are fully in-tune with the needs of the vanadium alloy market in China. Their development plans will set them up as a significant supplier of VCN to feed the rising demand for this feedstock as the new rebar standards are implemented. WinWin has undertaken due diligence and identified AVL’s Gabanintha project as the one most likely to be able to provide the grade and quantity of product they require for the future,” said Vincent Algar, AVL’s managing director.

Click here to read the full press release

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WHAT'S IN STORE FOR THE RESOURCE SECTOR IN 2022?

The Investing News Network (INN) spoke with analysts, market watchers and insiders about which trends will impact this sector in the year ahead.
✓ Trends   ✓ Forecasts    ✓ Top Stocks



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Rio Tinto Iron Ore Chief Executive, Simon Trott and Rio Tinto Managing Director of Port, Rail and Core Services, Richard Cohen, joined community members, local businesses and representatives from local government to celebrate the official opening of its new community ‘Hub’ in Karratha. Located on Ngarluma country in the heart of Karratha’s CBD, the new Rio Tinto Karratha Hub will make it easier for local …

Rio Tinto Iron Ore Chief Executive, Simon Trott and Rio Tinto Managing Director of Port, Rail and Core Services, Richard Cohen, joined community members, local businesses and representatives from local government to celebrate the official opening of its new community ‘Hub’ in Karratha.

Located on Ngarluma country in the heart of Karratha’s CBD, the new Rio Tinto Karratha Hub will make it easier for local people to connect with our busines.

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Rio Tinto is progressing an innovative new technology to deliver low-carbon steel, using sustainable biomass in place of coking coal in the steelmaking process, in a potentially cost-effective option to cut industry carbon emissions. Over the past decade, Rio Tinto has developed a laboratory-proven process that combines the use of raw, sustainable biomass with microwave technology to convert iron ore to metallic …

Rio Tinto is progressing an innovative new technology to deliver low-carbon steel, using sustainable biomass in place of coking coal in the steelmaking process, in a potentially cost-effective option to cut industry carbon emissions.

Over the past decade, Rio Tinto has developed a laboratory-proven process that combines the use of raw, sustainable biomass with microwave technology to convert iron ore to metallic iron during the steelmaking process. The patent-pending process, one of a number of avenues the company is pursuing to try to lower emissions in the steel value chain, is now being further tested in a small-scale pilot plant.

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various commodities atop a laptop
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“As we've seen in Ukraine, war has supercharged a number of these commodity prices,” John Forwood told RIU Resources Round-Up attendees.

Investment strategies for weathering and benefiting from current market trends were a hot topic at Sydney's recent RIU Resources Round-Up, held in early May.

Current opportunities and potential future ones were highlighted in the keynote address offered by John Forwood, chief investment officer at Lowell Resources Funds Management.

Quoting a February report from the head of commodity research at Goldman Sachs (NYSE:GS), Forwood explained to attendees that we have reached a “molecule crisis” in the commodity space and are essentially “out of everything.”


This deficit has only been compounded by the war in Ukraine, which has further weakened supply fundamentals and chains.

“When the (war in) Ukraine started, about a month later the commodities index (represented by Bloomberg commodities index) had its highest one-week spike on record, and that's a record going back over 60 years,” Forwood said. “As we've seen in Ukraine, war has supercharged a number of these commodity prices.”

However, according to the CIO, there is still a considerable amount of upward growth potential.

“In terms of where we are in terms of that commodity basket, we're way behind where we were in 2008, pre the (global financial crisis) and after the mining boom of the 2000s,” he told the crowd.

“And we're way behind where the Dow Jones and equities in general have got to,” Forwood added. “So, we think that there's potential for the commodity sector to be just getting started.”

There are also several other factors that are adding tailwinds to the broad sector, according to Forwood, who cited inflation — which is at 5 percent in Australia and 7-8 percent in the US and UK — as a significant contributor.

Looking at the longer-term fundamentals that have gotten us here, Forwood pointed to lack of investment capital as a main driver.

“I think the big one, the long term one, is under investment,” he said, noting that the early 2000s mining boom led to a lot of investment, which we aren’t seeing today.

“But over the last seven or eight years, we've seen a real dearth of capital going back into the sector. And in fact, we've also seen a dearth of M&A — something that we've been looking out for and it's just not happening.”

In fact, as one of the slides Forwood presented laid out, investment from the resource industry back into itself reached a 19 year low late last year.

Despite the lack of large investment, Australia’s junior resource index was up 16 percent at the end of April compared to the broader market and the Dow Jones Index, which had slipped 9 percent.

“So that may represent a rotation from other sectors into the resources sector. And if that is the start of what's happening, that could be very, very significant for resource company prices,” he said, explaining the resource sector is actually very small on a global scale.

“And if you see significant global money flowing into that sector, you know, it's almost the sky's the limit,” Forwood added.

Gold and volatility

While speaking about several commodities, the CIO for Lowell Resource Funds Management took time to highlight how gold could also be positioned for an upward trend, because “commodities do best when inflation is rising, and interest rates are rising.”

He then displayed a chart that indicated gold was the top performer among US stocks and the US greenback during the first six months following the commencement of a Fed rate hike period.

Real interest rates, which are hovering around 0 percent, are likely to have no effect on gold's price because, according to the Forwood, rates would have to be 3 percent or higher to impact gold.

He did warn that stagflation could add more wind to the yellow metal’s sails moving forward.

“We think there's a decent chance of (stagflation) occurring, so what should you buy?” he posited. “If you think that stagflation is on its way, well, the answer is also gold.”

Forwood concluded his address by encouraging attendees to invest in the junior resource space.

“Finally, at the Lowell Fund, we like to invest in junior explorers,” he said.

“Because they're the ones who make the discoveries, and discoveries is where you can really add the most value.”

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

physical coin representing bitcoin

A Canadian fund provider is debuting a version of its popular bitcoin ETF in Australia. Is now the best time for this launch?

Australian investors are getting a new way to invest in the volatile bitcoin space thanks to a deal between an asset management company and a Canadian fund provider.

On May 12, Canadian fund maker Purpose Investments launched a version of its bitcoin exchange-traded fund (ETF) in the Australian market by way of a partnership with Cosmos Asset Management, which is owned in part by the Australian division of Mawson Infrastructure Group (NASDAQ:MIGI).

The fund, called the Cosmos-Purpose Bitcoin Access ETF (CXA:CBTC), is listed on the Cboe Australia exchange, and holds units of the Toronto-based Purpose Bitcoin ETF (TSX:BTCC).


“We have brought together a team of global experts to offer Australian investors access to a truly high-quality product,” Dan Annan, Cosmos Asset Management CEO, said in a statement to investors.

ETF maker pursues rising international interest in cryptocurrencies

In an interview with the Investing News Network (INN), Vlad Tasevski, chief operating officer and head of product at Purpose Investments, said the firm has been actively pursuing ways to offer its crypto funds internationally.

The executive said there has been widespread interest in BTCC since its launch back in February of last year.

As the firm began evaluating how to approach this demand, the company considered setting up shop in the Australian market, Tasevski said. However, eventually the Canadian fund provider went with the partnership route.

Tasevski called Australia “the next logical jurisdiction" for the firm as it expands with its crypto funds.

When asked what makes Australia so attractive for the expansion of BTCC, the executive said it has a similar market structure to Canada, and credited securities regulators in the nation for being more comfortable with cryptocurrency listings than other jurisdictions.

Purpose has strong long-term outlook for digital assets

Although crypto assets are facing a serious ongoing downturn in value that has created significant losses, Tasevski told INN that Purpose Investments is undeterred in its long-term crypto outlook.

“The amount of capital and the amount of people involved in the space has never been higher,” Tasevski said.

The executive said he views his company's offerings as very flexible for investors. “We'll be here for (investors) to actually give them the ability to very easily access it whenever they feel it is appropriate for them,” he said.

Tasevski added that he views the current downturn for bitcoin as “one of the best entry opportunities in the last year and a half.”

​As bitcoin struggles, ETF firm celebrates structural victory

Purpose Investments has suggested to investors that accessing the bitcoin market through its funds is a safer route than going it alone, especially given the current period of remarkable losses.

According to Tasevski, the firm's products offer liquidity to investors and provide a measured approach for people who want exposure in this segment.

“We have been very clear that this is a volatile asset class,” he told INN. “And investors should kind of understand the level of volatility that they will be taking on.”

The investment executive said the infrastructure security provided by the rules ETFs must follow has been a boon as the crypto space faces major volatility.

Even so, BTCC has been rocked in 2022 based on the performance of bitcoin. Over a year-to-date period, the fund had gone down in value by over 35 percent as of the closing bell in Canada on May 11. In the past month alone, BTCC has dropped in value by over 20 percent.

Som Seif, founder and CEO of Purpose Investments, recently said crypto is a “core component” for the firm “when solving problems for (its) customers.”

​Investor takeaway

Digital assets have never been more easily available as tools for all types of investors.

While many experts remain confident in the long-term outlook for bitcoin and other cryptocurrencies, the considerable volatility prevailing in the market can make the space difficult for newcomers to stomach.

So far in 2022, bitcoin losses have highlighted the lack of stability in digital coins — but of course, as some have argued, these big moves can also provide entry points and opportunities for savvy investors.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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