TIDMBMN
RNS Number : 9499D
Bushveld Minerals Limited
25 October 2022
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.
25 October 2022
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Q3 2022 and 9M 2022 Operational Update
Bushveld Minerals Limited (AIM: BMN), the integrated primary
vanadium producer and energy storage solutions provider
("Bushveld"), today provides an operational update for the three
months and nine months ending 30 September 2022.
Group highlights
-- Production of 2,657 mtV for 9M 2022 (9M 2021: 2,629 mtV).
-- Production of 1,016 mtV for Q3 2022 (Q2 2022: 668 mtV)
supported by Kiln 3 improved performance.
-- Weighted average production cash cost (C1) [1] of US$28.9/kgV
for 9M 2022 (9M 2021: US$25.80/kgV).
-- Weighted average production cash cost (C1) of US$29.3/kgV for Q3 2022 (Q2 2022: US$31.0/kgV.)
2022 Group guidance
-- Production guidance of 3,900 mtV - 4,100 mtV maintained.
-- (C1) Production cash cost guidance at each asset is maintained.
-- On track to achieve an annualised steady state production run
rate of 5,000 mtVp.a. - 5,400 mtVp.a. by the end of 2022. .
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"I am pleased to report a solid production update for the
quarter to end-September, reflecting continued stability at Vametco
and further ramp-up at Vanchem's Kiln 3. Despite ongoing power
supply issues, the ramp-up at Kiln 3 has seen monthly production
more than double from July's production. I am pleased to report
that as a result of Kiln 3, total production at Vanchem has
increased by 83% compared to the previous quarter.
This year, South Africa has experienced unprecedented levels of
loadshedding whereby the state utility temporarily turns off the
electricity to an area due to a supply shortage. Q3 2022 was
notably a severe period of loadshedding since the onset of the
energy crises in 2007, with 75 events totalling to 218 hours of
load shedding and, in turn, lost or significantly curtailed
production hours. Calendar 2022 is proving to be the worst year in
the last 5 and September was so far the worst month.
The near-term prognosis from Eskom does not indicate significant
improvement and at Vanchem, where we are primarily affected, we
will continue to use diesel generators during loadshedding periods.
Engagements with the local municipality to explore ways to mitigate
the impacts are ongoing. In addition, we are exploring renewable
self-generation options to supplement power requirements, similar
to the mini-grid project we are constructing at Vametco.
The elevated inflationary environment globally continues to put
pressure on costs, which we expect to be partially mitigated by the
increase in production throughput rates, our continued efforts on
cost reduction and the benefit of a weaker ZAR.
Despite these challenges, we remain on track to achieve our
annualised steady state production target by the end of 2022, as
well as our cost guidance for each asset."
Conference call
Bushveld Minerals Chief Executive Officer, Fortune Mojapelo, and
Finance Director, Tanya Chikanza will host a conference call at
12:30 pm UK time (13:30 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, Toll Free: 0808 109
0700; South Africa: +27 11 589 8302, Toll Free: 0 800 980 512
Password: Quote Bushveld when prompted by the operator.
A replay of the conference call will be available on the
Company's website post the call.
BUSHVELD VANADIUM
9M 2022 Q3 2022 Q3 2022
Group(1) Unit Q3 2022 9M vs vs vs
2022 9M 2021 Q3 2021 Q2 2022
Production mtV(2) 1,016 2,657 1.0% -3.7% 52.1%
--------- ---------- ------- --------- --------- ---------
Sales(3) mtV(2) 1,034 2,678 10.0% 25.2% 31.4%
--------- ---------- ------- --------- --------- ---------
Weighted average
production cash
cost (C1) US$/kgV 29.3 28.9 12.1% 20.8% 5.7%
--------- ---------- ------- --------- --------- ---------
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 9M 2022 Q3 2022 Q3 2022
Q3 2022 9M 2022 vs vs vs
9M 2021 Q3 2021 Q2 2022
-------
1 174
Ore mined Tonnes 430 316 672 34.8% 18.1% 35.1%
------- ---------- -------- -------- --------
Total mined (ore 1 328 3 000
+ waste) Tonnes 291 452 27.0% 48.0% 68.1%
------- ---------- -------- -------- --------
Ore grade (in Whole % V(2)
Rock) O(5) 0.96 0.86 22.9% 17.1% 14.3%
------- ---------- -------- -------- --------
290
Concentrate produced Tonnes 106 096 746 3.1% -6.7% 24.7%
------- ---------- -------- -------- --------
Concentrate grade % V 1.03 1.04 -1.9% -3.7% -1.9%
------- ---------- -------- -------- --------
Recovery from Kiln
to MVO % 70.3 72.9 1.2% -6.3% -8.7%
------- ---------- -------- -------- --------
Production (Nitro
Vanadium) mtV(2) 666 1 892 7.9% -12.9% 39.7%
------- ---------- -------- -------- --------
Production cash
cost (C1) (3) ZAR/KgV 457.4 395.2 11.4% 40.1% 20.7%
------- ---------- -------- -------- --------
Production cash
cost (C1) (3) US$/KgV 26.9 24.8 1.6% 20.6% 10.2%
------- ---------- -------- -------- --------
Foreign exchange ZAR:
rate USD 17.0 15.9 9.4% 16.4% 9.4%
------- ---------- -------- -------- --------
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 and social 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
-- 9M 2022 production of 1,892 mtV (9M 2021: 1,753 mtV). The
increase is supported by continued operational performance and
stability.
- Q3 2022 production of 666 mtV (Q2 2022: 477 mtV). The annual
planned maintenance shutdown was conducted in Q2 2022.
Costs
-- 9M 2022 production cash cost (C1) of US$24.8/kgV (9M 2021:
US$24.4/kgV). Inflationary pressures resulted in higher raw
materials costs and energy costs which were partially offset by a
weaker ZAR:USD exchange rate.
- Q3 2022 production cash cost (C1) of US$26.9/kgV (Q2 2022:
US$24.4/kgV). The increase is attributable to the greater use of
raw materials during the quarter.
-- Costs are expected to normalise through the rest of the year,
with 2022 production cash costs expected to be within guidance a s
we keep implementing our cost containment initiatives but remain
dependant on inflationary pressures not increasing even
further.
2022 Guidance
-- On track to meet full-year production guidance of 2,550 mtV - 2,650 mtV.
-- On target to meet production cash cost (C1) guidance of
US$22.7/kgV - US$23.5/kgV (ZAR346.9/kgV and ZAR358.7/kgV).
VANCHEM
Operational highlights for Vanchem(1)
Description Unit Q3 9M 2022 9M 2022 Q3 2022 Q3 2022
2022 vs vs vs
9M 2021 Q3 2021 Q2 2022
69
Ore Milled Tonnes 237 168 907 19.6% 30.0% 28.5%
--------------------- --------- ------- --------- --------- --------- ---------
Ore Grade (in Whole % V(2)
Rock) O(5) 1.41 1.33 -5.0% -3.0% 14.8%
--------------------- --------- ------- --------- --------- --------- ---------
51
Milled ore to kiln Tonnes 108 124 101 26.3% 39.5% 29.0%
--------------------- --------- ------- --------- --------- --------- ---------
Milled Ore Grade % V 0.93 0.94 0.0% 0.1% -1.5%
--------------------- --------- ------- --------- --------- --------- ---------
Vametco concentrate
to kiln Tonnes 2 846 9 689 -41.2% -48.3% 106.0%
--------------------- --------- ------- --------- --------- --------- ---------
Concentrate Grade % V 0.93 0.94 -11.0% -12.0% -2.8%
--------------------- --------- ------- --------- --------- --------- ---------
Recovery: Kiln
to Final Product % 71.4 68.6 -16.0% -6.0% -1.9%
--------------------- --------- ------- --------- --------- --------- ---------
Chemicals mtV(2) 26 137 -23.2% -71.6% -65.4%
--------- ------- --------- --------- --------- ---------
Flake mtV (2) 69 76 -70.5% 16.8% 100.0%
--------- ------- --------- --------- --------- ---------
FeV mtV (2) 255 552 80.7% 82.1% 120.8%
--------- ------- --------- --------- --------- ---------
Nitro Vanadium mtV(2) - - -100.0% 0.0% 0.0%
--------- ------- --------- --------- --------- ---------
Total production mtV (2) 350 765 -12.7% 20.4% 83.3%
--------- ------- --------- --------- --------- ---------
Production cash
cost (C1)(3) ZAR/kgV 574.9 623.5 48.9% 44.2% -23.8%
--------- ------- --------- --------- --------- ---------
Production cash
cost (C1)(3) US$/kgV 33.8 39.1 36.2% 23.8% -30.4%
--------- ------- --------- --------- --------- ---------
ZAR:
Foreign exchange USD 17.0 15.9 9.4% 16.4% 9.4%
--------- ------- --------- --------- --------- ---------
1. Based on provisional, unaudited figures.
2. mtV = metric tonnes of vanadium
3. Excludes depreciation, royalties and selling, general &
administrative and social 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
-- 9M 2022 production of 765 mtV (9M 2021: 876 mtV). Decrease in
production due to lower than anticipated recoveries associated with
the Kiln 1 wind-down, electricity load shedding, and a slower than
expected ramp-up post commissioning of Kiln 3, as previously
mentioned.
-- Q3 2022 production of 350 mtV (Q2 2022: 191 mtV). Higher
production volumes, supported by improved performance of Kiln 3,
with production of 61 mtV in July, 151 mtV in August and 138 mtV in
September.
- Kiln 3 performance would have been even better if it had not
been for electricity load shedding, with September experiencing the
highest frequency and severity of load shedding.
Costs
-- 9M 2022 production cash cost (C1) of US$39.1/kgV (9M 2021:
US$28.7/kgV). Increase in cost due to lower production volumes,
higher raw material costs and costs associated with the ramp-up of
Kiln 3.
-- Q3 2022 production cash cost (C1) of US33.8/kgV (Q2 2022:
US$48.5/kgV). Cost reduction, supported by higher production
volumes during the quarter .
-- Costs are expected to normalise through the rest of the year,
with 2022 production cash costs expected to be within guidance a s
we keep implementing our cost containment initiatives but remain
dependant on inflationary pressures not increasing even
further.
2022 Guidance
-- Production guidance of 1,350 mtV - 1,450 mtV is maintained,
supported by Kiln 3 ramping-up as planned, although, severe load
shedding poses a risk to Vanchem's ability to meet guidance.
-- Production cash cost guidance of US$34.9/kgV - US$35.5/kgV
(ZAR534/kgV and ZAR542/kgV) maintained.
HEALTH AND SAFETY
-- Q3 2022 Total Injury Frequency Rate ("TIFR") of 12.01 (Q3
2021: 8.74) due to increased number of lost time injuries ("LTIs")
of 5 vs zero in Q3 2021.
- The Group will focus its efforts on increasing inspections,
plant tasks observations and engagement with employees.
ESKOM ELECTRICITY LOAD SHEDDING
The South African energy crisis deepened during Q3 2022. As
Eskom, South Africa's national utility, was forced to implement
several load shedding measures during Q3 2022, the power utility
imposed up to stage 6 which resulted in 6000 MW of demand being
curtailed across South Africa. During this period, Vametco's
operational performance was not affected by these periods of load
curtailment and there is no impact on the plant's production
performance.
Unlike Vametco, Vanchem purchases its power through its local
electricity distributor, the Emalahleni municipality. The
municipality imposes periods of total power loss (and not
curtailment) during load shedding, resulting in almost total
shutdown of the plant, thereby impacting Vanchem's operational
performance. The plant has generators to power the kiln but not the
rest of the plant. The use of generators comes at a significant
cost implication due to the current cost of diesel. Vanchem has
been actively engaging with the local municipality to implement a
load curtailment solution. A bilateral technical team from Vanchem
and the municipality is preparing for necessary technical hardware
to migrate to the curtailment regime that would signal a marked
production improvement for Vanchem. Further to this and in
collaboration with the Bushveld Energy team, we are developing
battery storage and renewable energy import options to supplement
the power requirements of Vanchem.
VANADIUM PRICE AND OUTLOOK
-- 9M 2022 ferrovanadium London Metal Bulletin ("LMB") price of
US$41.1/kgV, CRU Ryan's Note of US$56.5/kgV and Asian Metals of
US$34.8/kgV (9M 2021: US$38.2/kgV, US$37.7/kgV and US$36.5/kgV)
with USA prices trading at a premium to the rest of the world.
-- Q3 2022 LMB Ferrovanadium prices: US$33.8/kgV, (Q2 2022:
US$43.8/kgV). CRU Ryan's notes US$50.9/kgV (Q2 2022: US$67.5/kgV)
and Asian Metals US$30.4/kgV (Q2 2022: US$33.7/kgV).
-- Sales volumes and markets have been flexed to maximise
revenue by optimising sales of Nitro Vanadium into the higher
priced North American steel market and increasing premium vanadium
chemical sales into aerospace and petroleum / catalyst
applications.
-- Demand for Bushveld Mineral's suite of vanadium products
remains strong, and the flexibility afforded by the diverse product
mix and wide geographic presence is a significant strength when the
current reduction in steel capacity utilisation is considered,
allowing emphasis on higher value products and markets. The
expectation remains that sales volume will equal production
volume.
S
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor Relations
Nominated Adviser +44 (0) 20 3470
SP Angel Corporate Finance LLP & Broker 0470
Richard Morrison / Charlie Bouverat
Grant Baker / Richard Parlons
+44 (0) 20 7653
RBC Capital Markets Joint Broker 4000
Jonathan Hardy / Caitlin Leopold
Tavistock Financial PR
Gareth Tredway / Tara Vivian-Neal/ +44 (0) 207 920
Adam Baynes 3150
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary
vanadium producer. It is one of only three operating primary
vanadium producers, owning 2 of the world's 4 operating primary
vanadium processing facilities. In 2021, the Company produced 3,592
mtV, representing approximately 3% of the global vanadium market.
With a diversified vanadium product portfolio serving the needs of
the steel, energy and chemical sectors, the Company participates in
the entire vanadium value chain through its two main pillars:
Bushveld Vanadium, which mines and processes vanadium ore; and
Bushveld Energy, an energy storage solutions provider. Bushveld
Vanadium is targeting to materially grow its vanadium production
and achieve an annualised steady state production run rate of
between 5,000 mtVp.a. and 5,400 mtVp.a by the end of 2022. Growth
plans to expand to 8,000 mtVp.a. will be pursued, subject to
funding and market conditions.
Bushveld Energy is focused on developing and promoting the role
of vanadium in the growing global energy storage market through the
advancement of vanadium-based energy storage systems, specifically
Vanadium Redox Flow Batteries ("VRFBs")
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldminerals.com
About Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces mostly Nitro Vanadium.
The mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
("ROM") ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrate is fed into the
extraction process which consists of a rotary kiln for roasting
followed by leaching and precipitation. Thereafter the precipitated
vanadium as ammonium metavanadate is converted to modified vanadium
oxide ("MVO") in a rotary calciner. MVO is fed into the mix plant
and finally into the shaft furnaces to produce Nitro Vanadium.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni
Local Municipality, Mpumalanga Province in the Republic of South
Africa. Vanchem is a primary vanadium producing facility with a
beneficiation plant capable of producing various vanadium oxides,
ferrovanadium and vanadium chemicals. Vanchem uses the salt roast
beneficiation process, similar to the one used at Vametco. The
plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a
vanadium chemical plant; and a rail siding linking the plant with
Bushveld deposits and additional potential supply sources through
the national rail network.
[1] Weighted average production cash cost (C1): is the blended
weighted average production cash cost (C1) of Vametco and Vanchem,
divided by group production.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTPPGBAUUPPPGC
(END) Dow Jones Newswires
October 25, 2022 02:00 ET (06:00 GMT)
Bushveld Minerals (AQSE:BMN.GB)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Bushveld Minerals (AQSE:BMN.GB)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
