Bushveld Minerals said its cash position remains "extremely tight" as an expected subscription has yet to come through.
Approval to sell a 50% stake in Vanchem and 64% of the Mokopane project for US$25 million is also pending, while US$3.5 million due from Acacia Resources has yet to arrive as legal proceedings commence.
Vanadium prices have also weakened and Bushveld said it will need further funding in the coming weeks to keep operations running.
Chief executive Craig Coltman stated: “Notwithstanding the operational developments achieved to date, the delay in payments, coupled with the weaker realised Vanadium prices, now 15% lower than budgeted, has meant that our working capital position is extremely tight.”
Even so, he said he was "delighted" with the operational improvement over the past quarter.
“The reduction in unit cash costs by approximately 25% at Vanchem, along with a near doubling in production relative to first quarter 2023, demonstrates the success of our initial turnaround measures.
“This achievement is noteworthy despite the setback of losing 11 days of production in January due to the delayed settlement of funds.
“Moving on to Vametco, as previously communicated, during the quarter we conducted a 25-day planned maintenance shutdown, which was completed in mid-February.”
Production in the three months to 31 March 2024 was 855 tonnes of vanadium (mtV) against 935mtV a year ago, though processing arm Vanchem produced 498 mtV over the quarter and 200mtV in March, both record numbers.
Sales were 880 mtV with cash costs of US$28.4/kgV (q1 2023: US$25.9).