13th Dec 2023 14:12
(Alliance News) - Bushveld Minerals Ltd on Wednesday said it will be cutting costs, but the measures will impact about 40% of head office positions.
Bushveld Minerals is a South Africa-focused vanadium producer and energy storage solutions provider.
Bushveld said that it is been implementing various strategic cost curtailment measures aimed at "ensuring the long-term competitiveness and financial stability of the group as well as rightsizing headcount at the group's head office."
It noted that approximately 40% of head office positions will be impacted. This strategic move is expected to result in savings of about USD1.5 million per year.
"This decision is driven partly by global market conditions, but also by the recent decision to focus on our core operating assets, Vametco and Vanchem, while disposing of other assets, including our downstream energy assets and the Mokopane development project," Bushveld explained.
It added that the wellbeing of its employees remains a "top priority" and it is committed to supporting affected employees through the transition.
It added: "Despite these difficult decisions, Bushveld Minerals is confident that these measures are essential for navigating the current market conditions and ensuring the company's continued competitiveness throughout the commodity cycle."
Bushveld also gave shareholders an operational update on Wednesday.
It said it remains on track to meet its 2023 production forecast. However, due to repeated refractory failures at Vanchem in December, the company has decided to bring forward 12 days of the 2024 kiln reline programme, which will impact Vanchem's production for the month of December 2023.
Chief Execuitve Officer Craig Coltman said: "Over the past months, Bushveld Minerals has initiated several cost-saving initiatives, including a strategic ore sourcing programme and a moratorium on recruitment across the business. The challenges posed by global market conditions and the need for sustained operational stability have compelled us to take further strategic measures, including a reduction in our group head office staff.
"As we navigate these challenges, we are confident that these measures will fortify Bushveld Minerals for long-term resilience and continued success in the dynamic commodity landscape."
Shares in Bushveld were down 2.6% to 2.24 pence each in London on Wednesday afternoon.
By Sophie Rose, Alliance News senior reporter
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