Bushveld Minerals: Year End Results
AIM-listed Bushveld Minerals the vanadium producer and energy storage provider, has today announced year end results for the 12 months ending 31 December 2020. The group recorded production of 3,631 mtV and sales of 3,842 mtV, benefitting by the full year contribution of Vanchem which was acquired in November 2019. However Bushveld was impacted by a 52% decline in the average realised price, with revenues down 23% to US$90m. As at 27th June 2021, Bushveld had cash of US$31m.
Commenting on the outlook, Fortune Mojapelo, CEO said:
The successful acquisition of Vametco and Vanchem are important pillars in our brownfields growth strategy. With a combined acquisition cost for the two plants of approximately US$120 million and a growth capital expenditure of approximately US$30 million we now have the platform that will take the Group’s steady state production run rate to between 5,000 mtVp.a. and 5,400 mtVp.a, from the projects currently being executed, with further growth ahead as more capex is spent. As importantly, we have funded this growth since 2016 with limited equity financing (through equity placing, convertible and warrant instruments) (approximately US$60 million) while the balance came from cashflows generated by the operations and debt funding. Our task now is to match the capital efficiency we have demonstrated in growing our asset base with operational efficiency- realising their full production capacity and competitive cost position. We are up to the task.”
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