Market Abuse
Regulation ("MAR") Disclosure
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
5 February 2024
Bushveld Minerals
Limited
("Bushveld Minerals",
"Bushveld" or the
"Company")
Full year 2023 Operational
Update
Bushveld Minerals Limited (AIM:
BMN), the primary vanadium producer, is pleased to announce its
operational update for the 3 months and 12 months ending 31
December 2023.
Group highlights
Q4 2023
§ Q4 2023
production of 925 mtV (Q3 2023: 1,000 mtV).
§ Q4 2023
weighted average production cash cost1 (C1) of
US$27.3/kgV (Q3 2023: US$26.5).
§ Q4 2023
sales of 1,106 mtV (Q3 2023: 849 mtV).
12M 2023
§ 12M 2023
production of 3,714 mtV (12M 2022: 3,842 mtV), in line with
guidance.
§ 12M 2023
weighted average production cash cost1 (C1) of
US$26.6/kgV (12M 2022: US$27.7/kgV).
§ 12M 2023
sales of 4,051 mtV (12M 2022: 3,584 mtV), owing to increased sales out of inventory.
§ 12M
2023 Total Recordable Injury Frequency Rate
("TRIFR") of 2.31 (12M
2022:10.32).
1. Weighted
average production cash cost (C1) is the blended weighted average
production cash cost (C1) of Vametco and Vanchem, divided by group
production.
2024 Group guidance and operational
update
§ Group
guidance has been suspended pending receipt of funds from Southern
Point Resources. Due to the continuing default of Southern Point
Resources ("SPR") in respect as part of the equity raise, the
Company has had to suspend critical suppliers' payments and
postpone some maintenance projects. The Company intends to provide
an update on 2024 guidance in the Q1 2024 operational
update.
§ January
2024 Group production of 267 mtV affected by the Company's current
constrained cash position.
§ Annual
scheduled maintenance to occur in Q1 and Q3 2024 for Vametco and Q2
2024 for Vanchem.
Post period highlights
§ On 1
February 2024, the Company announced that it had completed the
refinancing of the unsecured convertible loan note issued to OMF
Fund III (F) Ltd. ("Orion") for a total debt obligation of US$47.1
million (including accrued interest).
Craig
Coltman, CEO of Bushveld Minerals Limited,
commented:
"I am pleased that we have met 2023
production guidance and I would like to commend our workforce for
achieving the level of operational performance in H2 2023 given
cash flow challenges faced. We are pleased to have announced the
completion of the Orion convertible debt restructuring announced on
1st February 2024 and had hoped to have put our financial
difficulties behind us, and so it is therefore disappointing that
we have to suspend 2024 production guidance given the funding
shortfall reported in recent announcements. Once the additional
funding is received, we hope to stabilise production at both assets
and achieve a more consistent performance."
Conference call
Bushveld Minerals Chief Executive
Officer, Craig Coltman, will host a conference call at 1:00 pm UK time (3:00 pm SAST) today to discuss the quarterly update with analysts and investors.
Participants may join the call by dialling:
Tel: United Kingdom: +44 (0) 330 551
0200; South Africa: Toll Free: 0 800
980 512, USA Local: +1 786 697
3501
Password: Quote Bushveld Minerals when prompted by the
operator.
A replay of the conference call will
be available on the Company's website post the call.
Investor session
Bushveld Minerals Chief Executive Officer, Craig Coltman will host an
investor session on 8 February 2024 at 1:00 pm UK time
(3:00 pm SAST) via
the Investor Meet Company platform to discuss the
operational update.
The session is open to all existing
and potential shareholders. Investors can submit questions
via Investor Meet Company dashboard up
until 9:00am the day before the meeting.
Investors can sign up
to Investor Meet Company for free and register for the
event via:
https://www.investormeetcompany.com/bushveld-minerals-limited/register-investor
Investors who already
follow Bushveld Minerals on the Investor Meet
Company platform will automatically be invited.
BUSHVELD VANADIUM
Group1
|
Unit
|
Q4 2023
|
12M 2023
|
12M
2023 vs
12M
2022
|
Q4 2023
vs
Q4
2022
|
Q4 2023
vs
Q3
2023
|
Production
|
mtV2
|
925
|
3,714
|
-3.3%
|
-21.9%
|
-7.5%
|
Weighted
average production cash cost1 (C1)
|
US$/KgV
|
27.3
|
26.6
|
-3.9%
|
9.1%
|
3.3%
|
Sales3
|
mtV2
|
1,106
|
4,051
|
13.0%
|
22.2%
|
30.2%
|
1.
Based on provisional, unaudited
figures.
2.
mtV = metric tonnes of vanadium.
3.
Reported as final sales to customers.
VAMETCO
Operational highlights for Vametco
(on a 100% basis)1
Description
|
Unit
|
Q4 2023
|
12M
2023
|
12M 2023
vs
12M
2022
|
Q4 2023
vs
Q4 2022
|
Q4 2023
vs
Q3
2023
|
Ore
mined
|
Tonnes
|
99,463
|
1,061,947
|
-26.6%
|
-76.6%
|
-73.0%
|
Total
mined (ore + waste)
|
Tonnes
|
223,503
|
2,317,537
|
-30.0%
|
-82.7%
|
-69.1%
|
Ore grade
(in Whole Rock)
|
%
V2O5
|
0.73
|
0.68
|
-21.8%
|
-16.1%
|
7.4%
|
Concentrate
produced
|
Tonnes
|
93,466
|
359,905
|
-7.8%
|
-6.2%
|
13.7%
|
Concentrate
grade
|
%
V
|
1.06
|
1.05
|
2.0%
|
5.6%
|
1.0%
|
Recovery
from Kiln to MVO
|
%
|
68.0
|
67.0
|
-7.4%
|
-3.8%
|
7.4%
|
Production (Nitro
Vanadium)
|
mtV2
|
589
|
2,306
|
-14.8%
|
-27.5%
|
8.1%
|
Production cash cost
(C1)3
|
ZAR/KgV
|
495.1
|
471.1
|
21.3%
|
33.0%
|
0.1%
|
Production cash cost
(C1)3
|
US$/KgV
|
26.4
|
25.5
|
7.5%
|
24.9%
|
-0.4%
|
Foreign exchange
rate
|
ZAR:
USD
|
18.75
|
18.46
|
12.9%
|
6.4%
|
0.5%
|
1.
Based on provisional, unaudited figures.
Bushveld's net attributable interest of the above figures is
approximately 74%. Production cash cost is based on vanadium
produced.
2.
mtV = metric tonnes of vanadium.
3.
Excludes depreciation, royalties and
selling, general & administrative expenses. Production
cash cost is based on vanadium produced. Production cash cost (C1)
measure does not have any standardized meaning prescribed by IFRS
and differs from measures determined in accordance with IFRS. This
measure is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. This measure is not
necessarily indicative of net earnings or cash flow from operating
activities as determined under IFRS.
Production
§ Q4 2023
production of 589 mtV (Q4 2022: 812 mtV, Q3 2023: 545 mtV),
impacted by constraints at the barren dam and Sulphate
Recovery Plant (SRP), reliability challenges at the leach plant and
cashflow shortfalls.
§ 12M 2023
production of 2,306 mtV (12M 2022: 2,705 mtV), with production
impacted by the aforementioned reasons.
Costs
§ Q4 2023
production cash cost (C1) of US$26.4/kgV (Q4 2022: US$21.1/kgV, Q3
2023: US$26.5/kgV), impacted by low production volumes during Q4
2023 partly offset by a weaker ZAR:USD exchange rate in Q4 2023
compared to Q4 2022 and Q3 2023.
§ 12M 2023
production cash cost (C1) of US$25.5/kgV (12M 2022: US$23.7/kgV),
due to lower production volumes.
2024 Operational
Update
§ 142 mtV
produced in January, due to an ongoing 25 day Kiln maintenance
shutdown.
- The kiln
is expected to be back online in mid-February.
§ A
further 10-days maintenance shutdown is expected in Q3
2024.
VANCHEM
Operational highlights for
Vanchem1
Description
|
Unit
|
Q4 2023
|
12M 2023
|
12M2023 vs
12M
2022
|
Q4 2023 vs
Q4
2022
|
Q4 2023 vs
Q3
2023
|
Ore Milled
|
Tonnes
|
80,663
|
307,788
|
18.6%
|
-11.0%
|
-2.1%
|
Ore Grade (in Whole
Rock)
|
%
V2O5
|
1.55
|
1.52
|
2.0%
|
2.0%
|
1.0%
|
Milled ore
to Kiln
|
Tonnes
|
63,547
|
234,385
|
26.1%
|
2.8%
|
9.3%
|
Milled Ore Grade
|
%
V
|
0.97
|
0.97
|
2.1%
|
0.8%
|
-1.9%
|
Recovery: Kiln to Final
Product
|
%
|
69.3
|
68.3
|
3.0%
|
12.4%
|
7.0%
|
Chemicals
|
mtV2
|
38
|
195
|
1.1%
|
-31.5%
|
-57.9%
|
Flake
|
mtV2
|
213
|
416
|
44.5%
|
0.7%
|
222.4%
|
FeV
|
mtV2
|
86
|
798
|
21.5%
|
-18.7%
|
-71.4%
|
Total
production
|
mtV2
|
336
|
1,408
|
23.9%
|
-9.6%
|
-26.1%
|
Production cash cost
(C1)3
|
ZAR/kgV
|
502.4
|
515.1
|
-15.3%
|
-15.2%
|
2.0%
|
Production cash cost
(C1)3
|
US$/kgV
|
26.8
|
27.9
|
-24.9%
|
-20.3%
|
1.5%
|
Foreign
exchange
|
ZAR:
USD
|
18.8
|
18.5
|
12.9%
|
6.4%
|
0.5%
|
1. Based on
provisional, unaudited figures.
2.
mtV = metric tonnes of vanadium.
3. Excludes
depreciation, royalties and selling, general & administrative
expenses. Production cash cost is based on vanadium produced.
Production cash cost (C1) measure does not have any standardized
meaning prescribed by IFRS and differs from measures determined in
accordance with IFRS. This measure is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. This measure is not necessarily indicative of net
earnings or cash flow from operating activities as determined under
IFRS.
Production
§ Q4 2023
production of 336 mtV (Q4 2022: 372 mtV, Q3 2023: 455), due to
unplanned stoppages as a result of repeated
refractory failures during the quarter. Accordingly,
a decision was taken to bring forward part of the
2024 kiln reline maintenance programme shutdown to December 2023.
In addition, cashflow challenges negatively impacted
production.
§ 12M 2023
production of 1,408 mtV (12M 2022: 1,137 mtV), although production
was impacted by the reason mentioned above, overall, the production
increase was underpinned by the Vanchem turn around project
implemented in H2 2023.
- Highest
yearly production since the asset was acquired by
Bushveld.
Costs
§ Q4 2023
production cash cost (C1) of US$26.8/kgV (Q4 2022: US$33.6/kgV, Q3 2023:
US$26.4/kgV), supported by a weaker ZAR:USD exchange rate in
Q4 2023 compared to Q4 2022 and Q3 2023, partially offset by a
lower production volumes during Q4 2023.
§
12M 2023 production cash cost (C1) of
$27.9/kgV (12M
2022: US$37.2/kgV) supported by higher production volumes and
a weaker ZAR:USD exchange rate compared to 12M 2022.
2024 Operational
Update
§
125 mtV produced in January due to working capital
constraints, resulting from delays in receiving the SPR
funding.
§
Annual 23-day maintenance shutdown expected during
Q2 2024.
BUSHVELD ENERGY
§ After the
Bushveld Electrolyte Company's ("BELCO") plant's completion in
August 2023 and the initial production run, the product samples
were distributed to customers for qualification and compatibility.
BELCO's electrolyte has already been successfully qualified by
three international battery companies and is in the qualification
process with others. The company is in discussion with multiple
companies on possible supply contracts. Furthermore, BELCO has
started the process of looking for additional investors in
its plant.
§ As
previously announced, the Group has commenced a sale process for
its stake in CellCube, the process still ongoing and in discussion
with various parties.
§ The
Mini-grid's plant and all its components are undergoing site
acceptance and grid compliance testing. The plant will generate
approximately 10% of Vametco's electricity requirements.
HEALTHY AND SAFETY
§ Q4 2023
TRIFR of 1.70 (Q4 2022: 5.97), 12M 2023 TRIFR at 2.31
(12M 2022: 10.32). The improvement is a result of the
implementation of a safety diagnostic assessment action plan.
Special focus was on leading indicators namely, visible felt
leadership, planned task observations, inspections and addressing
all the audits results.
Corporate
update
§ Appointment of the interim Finance Director
Bushveld has appointed Robbie
Taylor as non-board interim Finance Director. Robbie holds a bachelor's degree in commerce from the
University of Cape Town and is a qualified Chartered Accountant.
He brings with him over 27 years of experience as a finance
executive in various sectors. Robbie has extensive experience
working with listed entities and multinationals.
His professional skills include
areas such as Mergers and Acquisitions, Cost Control, Corporate
Governance, Unit Economics, Profit Optimisation, Management
Accounting and Financial Reporting, and Treasury. The Company will
now commence the search of a permanent Finance Director.
VANADIUM PRICE OUTLOOK
§ Q4 2023
CRU Ryan's Notes (US) Ferrovanadium prices averaged US$31.6/kgV,
showing a decline from US$36.0/kgV achieved in Q3 2023. London
Metal Bulletin and Asian Metals averaged US$26.6/kgV and
US$24.2/kgV respectively, also declining from US$31.5/kgV and
US$31.0/kgV in Q3 2023, respectively.
§ Sales into
the higher value markets (aerospace application, speciality alloy
and chemicals) and higher price markets (Nitro Vanadium in North
America) continue to be prioritised.
ENDS
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited
|
|
+27 (0) 11 268 6555
|
Craig Coltman, Chief Executive
Officer
|
|
|
Chika Edeh, Head of Investor
Relations
|
|
|
|
|
|
SP
Angel Corporate Finance LLP
|
Nominated Adviser & Joint Broker
|
+44 (0) 20 3470 0470
|
Richard
Morrison / Charlie Bouverat
|
|
|
Grant Barker / Richard
Parlons
|
|
|
|
|
|
Hannam & Partners
|
Joint Broker
|
+44 (0) 20 7907 8500
|
Andrew Chubb / Matt
Hasson / Jay Ashfield
|
|
|
|
|
|
Tavistock
|
Financial PR
|
+44 (0) 207 920 3150
|
Gareth Tredway / Tara
Vivian-Neal / James Whitaker
|
|
|
ABOUT BUSHVELD MINERALS
LIMITED
Bushveld Minerals is a primary
vanadium producer, it is one of only three operating primary
vanadium producers, with a diversified vanadium product portfolio
serving the needs of the steel, energy and chemical
sectors.
Detailed information on the
Company and progress to date can be accessed on the website
www.bushveldminerals.com