7th Nov 2019 12:15
(Alliance News) - Bushveld Minerals Ltd on Thursday reported a drop in quarterly vanadium production due to planned maintenance, as it completes a major acquisition.
Vanadium output in the three months to September was 561 metric tonnes, 24% lower than the figure in the second quarter due to already announced maintenance work at Vametco in South Africa.
This was completed in 22 days, two days ahead of schedule, and Bushveld does not have any further work planned in 2019. The work has increased crusher and mill availability, as well as throughput, helping boost recoveries.
As a result, Bushveld delivered a record monthly production figure of 310 metric tonnes of vanadium in September.
The company is on track to meet 2019 production guidance of 2,800 metric tonnes to 2,900 metric tonnes of vanadium.
Chief Executive Fortune Mojapelo said: "I am delighted to report on the great work done to improve Vametco's processing and production levels as a result of the initiatives that were identified as part of the transformation programme, which Vametco has now successfully implemented.
"Thanks to the recent efforts from our team on the ground, the maintenance programme was successfully implemented ahead of schedule. Following this work, Vametco was soon running at improved levels, achieving record production of more than 300 metric tonnes of vanadium from magnetite concentrate during the month of September. These sustainable operational achievements keep us on track to achieve our stated guidance for the year at both the cost and production levels."
Separately, Bushveld has now fully completed the takeover of the Vanchem plant in South Africa, as well as various other businesses. The total paid is USD53.5 million, having been reduced from USD68 million in October after vanadium prices weakened.
"The acquisition places the company in an advantageous position to offer an attractive and diverse suite of vanadium products capable of servicing the steel and chemical sectors and the burgeoning energy storage market," said Mojapelo.
"We are now able to fine tune the plan for these assets and then provide, in due course, a comprehensive strategy to our stakeholders."
"As we come towards the end of 2019, we have laid the groundwork for a strong 2020, which will see Bushveld Minerals strengthening its competitive position as the leading vertically integrated primary vanadium produce," he continued.
Bushveld shares were 2.8% lower on Thursday at midday in London at a price of 22.85 pence each.
By George Collard; [email protected]
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