Bushveld Minerals Limited hit the upper end of production guidance in 2021 as operational improvements implemented earlier in the year started to show through in the final quarter.
The vanadium miner produced 3,592 mtV (metric tonnes of vanadium) during the year or marginally lower than 2020 after a 28% sequential improvement in the second half.
Production costs also came in within guidance at mining operation Vametco and processing arm Vanchem, though sales, at 3,314 mtV, were impacted COVID-19, industrial unrest in South Africa and disruptions at local ports in July and August.
Cash at the year-end amounted to US$15mln (US$25mln).
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In 2022, Bushveld expects production to improve further to 4,200 mtV and 4,400 mtV in 2022, with volumes weighted towards the second half due to the ramp-up on commissioning of Kiln 3 at Vanchem.
Kiln 3 should increase Vanchem's annual production from 1,100 mtV to an annual run rate of 2,600 mtV by the end of 2022.
Fortune Mojapelo, chief executive, added he was pleased with the performance in the final quarter.
“Our focus on stable, achievable production levels on the back of the operational improvements and enhanced safety helped us reach the upper end of the full-year revised guidance and meet the unit cost guidance, pursuant to the rebasing in H1 2021.
"Production growth is key to unit cost reduction and margin expansion, as reflected in the guidance for 2022.
"Demand for vanadium in the US, Europe and Rest of the world remains buoyant and Ferrovanadium prices have strengthened and currently trade at an average of approximately US$35/kgV across markets."