Bushveld Minerals 2019 Production To Increase After Solid 1st Quarter

LONDON (Alliance News) - Vanadium miner Bushveld Minerals Ltd on Wednesday reported broadly flat ...

Alliance News 15 May, 2019 | 11:53AM
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LONDON (Alliance News) - Vanadium miner Bushveld Minerals Ltd on Wednesday reported broadly flat quarterly output, with production set to be skewed to the second half of 2019.

Bushveld, which owns the Vametco mine in South Africa, produced 649 metric tonnes of vanadium in the first quarter, flat on the previous quarter but down 11% year-on-year.

Vanadium sales were 508 metric tonnes, down 13% on the quarter before and 27% on the year prior.

Bushveld sold its product at a price of USD73.3 per kilogram, down 32% on the prior quarter but up 19% year-on-year.

Bushveld said performance in March was particularly strong after some initiatives carried out to improve production, and it is now guiding for 2,800 metric tonnes to 2,900 metric tonnes of vanadium for 2019.

This production will be slightly weighted to the second half, as Bushveld has 24 days of maintenance planned during June and July. Production has not been affected by power problems in South Africa, it said.

In 2018, the miner's production was 2,560 metric tonnes, down slightly year-on-year from 2,649 metric tonnes.

Bushveld sees unit costs at between USD18.90 per kilogram to USD19.50 per kilogram, which would be 4% to 2% lower year-on-year.

Chief Executive Fortune Mojapelo commented: "We ended the quarter on a very strong note, with the best monthly production output from Vametco in more than 21 months.

"This reflects the initial work completed under the transformation programme, announced earlier this year, which resulted in improvements in several key areas of the flow sheet, including scheduling, feed grade and overall plant recoveries."

"We are confident of steadily delivering on Vametco's productivity targets and, with the recently announced conditional acquisition of the Vanchem vanadium project for USD68 million, Bushveld Minerals is on a clear path to achieving its long term capacity target of 10,000 metric tonnes of annual production capacity," Mojapelo continued.

"These initiatives will significantly enhance our competitive position in the Vanadium market over the coming years."

Bushveld shares were 2.5% lower on Wednesday shortly before midday at 27.80 pence each. Towards the end of 2016, shares were worth only 1.50p.

By George Collard; georgecollard@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Bushveld Minerals Ltd 25.25 GBX 1.00 -
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