Q1 2021 Operational Update

Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider, with ownership of high-grade assets in South Africa, (“Bushveld”), is pleased to provide an operational update for the three months ending 31 March 2021.

The Company also announces that going forward Bushveld Energy updates will be issued separately as standalone announcements.

Key Highlights

Bushveld Vanadium

• Q1 2021 Group production of 688 mtV (Q1 2020: 880 mtV) affected by the previously announced 35-day planned maintenance shutdown at Vametco, which was successfully completed on time and within budget, during the quarter.
  • Vanchem production in Q1 2021 of 293 mtV was 34 per cent higher than Q1 2020 (Q1 2020: 219 mtV) and 12 per cent higher than Q4 2020 supported by improved operational stability.
• Q1 2021 Group sales of 788 mtV* (Q1 2020: 1,080 mtV) due to lower production volumes as a result of the planned maintenance shutdown at Vametco.
• 2021 Group guidance expected towards the lower end of 4,100 mtV and 4,350 mtV, although risks to this guidance exist as a consequence of Vametco’s challenges in achieving consistent plant performance, the slower-than expected ramp-up following the maintenance shutdown, the recent industrial action, as well as risks associated with the ramp-up of Vanchem’s first phase refurbishment.
• The procurement phase of the Bushveld Electrolyte Plant has commenced, with commissioning expected in H2 2022.
• Q1 2021 Total Injury Frequency Rate (“TIFR”) of 8.54 (Q1 2020: 14.14).
• Currently no active Covid-19 cases among employees.

*Reported as final sales to customers.

Vanadium market

• Vanadium prices continued to increase during Q1 2021 after a strong start to the year.
• Prices had risen in China in the midst of the Spring Festival while in Europe, prices increased due to strong demand and tight inventories.
• Lengthening of the supply chain/logistics disruptions supporting prices.
• Vanadium demand remains robust, and prices are expected to remain stable for the remainder of Q2 2021
• In Q1 2021 the London Metal Bulletin (“LMB”) Ferrovanadium price averaged US$30.9/kgV (Q1 2020: US$26.5/kgV). The current market price for LMB Ferrovanadium is approximately US$32/kgV.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

“After a year of uncertainty, I am pleased to say that we are seeing a stabilisation of Covid-19 cases in South Africa. We are proud to announce that we currently have no active cases and continue to be vigilant in our approach to tackle the spread of the virus.

“Although Group production was lower this quarter than in Q1 and Q4 of 2020, the Company was able to carry out the previously guided essential maintenance at Vametco. Vanchem meanwhile had a solid quarter of production.

“We recognise that Vametco has underperformed at times and work such as the 35-day maintenance shutdown is expected to improve on the reliability and performance issues experienced in the past. Since the industrial action and ramp-up we have seen a stable period of normalised production levels. Various workstreams remain underway to maintain this stability, including maximizing safety and house-keeping initiatives, better managing process system constraints and optimizing preventative maintenance programmes. In light of Vametco’s challenges in achieving consistent plant performance during Q1 2021 as well as risks associated with the ramp-up of Vanchem’s first phase refurbishment, Group guidance is expected towards the lower end of 4,100mtV to 4,350mtV, albeit there are risks to achieving this target.

“Positively, the vanadium price has continued to rise following a strong start to the year with increased demand in Europe and US on the back of a post-Covid period of growth. As the world continues to open up, we have confidence in the demand side of the vanadium market.”