Bushveld Minerals plans for long-term vanadium presence
- Bushveld Minerals boosted as production improvements confirmed
- Bushveld Minerals increase capacity at Enerox by $30m with consortium of investors
Quick facts: Bushveld Minerals Ltd
Price: 11.2 GBX
Market Cap: £133.6 m
About the company
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.
The company's target is to organically grow production to more than 8,400 mtVp.a. in the medium term.
How it is doing
Bushveld Minerals Limited (LON:BMN) confirmed higher production and sales volumes in the second quarter ending June 30.
Production amounted to 886 metric tonnes (mtV) of vanadium, up from 688 mtV in the preceding quarter, as operational stability improved in the Vametco subsidiary, which earlier this year was impacted by industrial action.
Vametco produced 278 mtV and 261 mtV for the months of May and June respectively, and the company said the monthly run rate is forecast to be maintained at 240 mtV for the rest of the year.
Bushveld said it is on track to meet production guidance of 3,400 mtV to 3,600 mtV for 2021.
Bushveld Minerals Limited (LON:BMN) produced a record amount of vanadium in 2020 as its acquisition Vanchem contributed for a full year.
Weak vanadium prices affected revenues, which dropped to US$90mln from US$117mln with Bushveld posting an underlying loss of US$14.9mln.
The vanadium producer said the maintenance work had affected production in the first quarter, which clocked in at 688 tonnes of vanadium, which was 21.8% lower than the corresponding quarter of 2020 and 28.7% down on the fourth quarter of 2020.
What management says
Fortune Mojapelo, chief executive of Bushveld Minerals Ltd (LON:BMN) talks to Proactive London about joining a consortium of investors in Enerox GmbH to invest US$30mln (£21.8mln) to scale up annual production capacity to 30MW (120-240 MWh) by 2022.
Enerox is a vanadium redox flow battery (VRFB) manufacturer, providing grid scale and micro-grid energy storage solutions.
Future expansion plans could allow Enerox to increase its production capacity to at least 150 MW (600-1,200 MWh) by 2025.
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