Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer and energy storage solutions provider, is pleased to announce its operational update for the three months and six months ending 30 June 2023.

Group Highlights

• Craig Coltman appointed Chief Executive Officer and board member, effective July 1, 2023.
• H1 2023 Total Recordable Injury Frequency Rate (“TRIFR”) of 3.39 (H1 2022: 8.06).
• Q2 2023 production of 840 mtV (Q2 2022: 668 mtV).
• H1 2023 production of 1,784 mtV (H1 2022: 1,641 mtV).
• Improvement measures implemented at Vanchem.
• Q2 2023 weighted average production cash cost* (C1) of US$27.4/kgV (Q2 2022: US$31.2/kgV).
• H1 2023 weighted average production cash cost* (C1) of US$26.6/kgV (H1 2022: US$28.3/kgV).
• Q2 2023 sales of 1,068 mtV (Q2 2022: 787 mtV), H1 2023 of 2,096 mtV (H1 2022: 1,644 mtV)
  • Supported by reductions in finished product stocks.

*Weighted average production cash cost (C1): is the blended weighted average production cash cost (C1) of Vametco and Vanchem, divided by group production.

2023 Group Guidance

• Group production guidance for 2023 revised to between 3,700 mtV and 3,900 mtV (previously between 4,200 mtV and 4,500 mtV).
• Group weighted average production cash cost (C1) guidance revised to between US$26.6/kgV and US$26.9/kgV, (ZAR481/kgV and 487/kgV). (Previously between US$26.1/kgV and US$27.0/kgV, (ZAR447/kgV and 438/kgV)).

Update on the Orion convertible loan note

• As announced in the Final Results for the Year Ended 31 December 2022, the closing of the refinancing of the Orion transaction is conditional on certain conditions, including South African Reserve Bank approval, the finalisation of definitive binding documentation and shareholders’ approval. As previously notified, the Company has made significant progress with Orion on the restructuring. Completion of the debt restructuring remains a key priority for Bushveld and details of a general meeting for shareholders to approve the Orion transaction will be sent to shareholders following the completion of the legal documentation and once approval from the South African Reserve Bank has been received.

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

“I spent my first week as the CEO on site at the Vametco and Vanchem plants as these are the centre of Bushveld’s operations. I have had the opportunity to meet many of our employees and I am heartened by the warmth with which they have received me as well as the passion and commitment they have for Bushveld Minerals.

In my short time at the Company, I have seen that, while there are challenges, there are also many positive signs and opportunities to get the most out of Bushveld’s most important asset, its people, and achieve the full potential within the Company’s operations. Getting maximum value out of Vametco and Vanchem is my number one priority.

As part of this effort, I will review the Group’s capital allocation strategy and prioritise projects that provide higher financial benefits with manageable risk.

With regards to guidance and after careful review, we have come to the conclusion that, largely due to challenges at Vametco associated with the levels of the barren dam and the Sulphate Recovery Plant, as well as Vanchem’s weak first half performance and delays in the use of the better quality ore, the 2023 production outlook needs to be revised.

That said, a number of initiatives have already been implemented to address production issues to ensure we get the maximum performance from our assets. I look forward to leading the team that achieves this for all our stakeholders.”

News in full

In the film below, SP Angel Analyst John Meyer highlights the investment case for Bushveld Minerals