Vanadium:

1
Vanadium A Recovery Still in Progress
BY ROBERT M. BUNTING STRATEGIC MINERALS
CORPORATION
19th INTERNATIONAL FERRO-ALLOYS CONFERENCE MONTE
CARLO, MONACO NOVEMBER 5, 2003
2
WORLDWIDE CRUDE-STEEL PRODUCTION RATE
Increasing for Two Years
Thousands of Metric Tons per Year
1998 1999 2000 2001 2002 2003
3
WORLDWIDE VANADIUM-CONSUMPTION RATE
Record Vanadium Usage
Millions of Lbs. of V2O5 per Year
1998 1999 2000 2001 2002 2003
4
VANADIUM SUPPLY TRENDS
12-Month Moving Average
South Africa
Russia
Millions of Lbs. of V2O5 per Year
China
United States
Australia
1999 2000 2001 2002 2003
5
VANADIUM SUPPLY TRENDS
12-Month Moving Average
South Africa
Russia
Millions of Lbs. of V2O5 per Year
China
United States
Australia
1999 2000 2001 2002 2003
6
CONSUMPTION EXCEEDS SUPPLY
12 Months through June 2003
173
164
All Others
16
22
U.S.A.
31
China
Millions of Lbs. of V2O5 per Year
22
Russia
74
South Africa
Consumption Production and
Other Supply
7
WORLDWIDE VANADIUM SUPPLY VS. CONSUMPTION
6-Month Moving Average -- Annual Rates
Supply
Millions of Lbs. of V2O5 per Year
Consumption
1999 2000 2001 2002 2003
8
APPARENT INVENTORY ACCUMULATION
Vanadium Pentoxide Equivalent
Millions of Lbs. of V2O5
Projected
1998 1999 2000 2001 2002 2003
9
VANADIUM-OXIDE PRICE HISTORY
London Metal Bulletin Monthly Midpoint Averages
Spike / Crash / Shakeout / Recovery
Dollars per Lb. of V2O5
1980 1985 1990 1995 2000
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VANADIUM-OXIDE PRICE VS. COST
Price in Rand
Rand per Lb. of V2O5
Product Cost in Rand
1990 1993 1996 1999 2003
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VANADIUM-OXIDE PRICE VS. COST
Price in Dollars
Dollars per Lb. of V2O5
Product Cost in Dollars
1990 1993 1996 1999 2003
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VANADIUM CAPACITY UTILIZATION
Capacity

2003 Production

Millions of Lbs. of V2O5
Steel Vanadium Oil Spent
Uranium
Slag Ore Residues
Catalysts By-Products
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VANADIUM CAPACITY UTILIZATION
Capacity

68
2003 Production

Capacity Utilization
66
Millions of Lbs. of V2O5
62
60
0
Steel Vanadium Oil Spent
Uranium
Slag Ore Residues
Catalysts By-Products
14
OUTLOOK

• Inventory Overhanging Market

Hinders Return to Profitability
Vanadium Consumption Is Strong,
Especially in Developing Countries
Australian, Russian Cutbacks
Should Steadily Reduce Inventories
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OUTLOOK

• Further Production Cutbacks

Will Accelerate Return to Profitability

• New Production Capacity

Will Prolong Unprofitability