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Bushveld Minerals sees ‘significant’ increase in quarterly production  

11:00, 21st July 2021
Francesca Morgan
Vox Newswire
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Bushveld Minerals (BMN FOLLOW) has reported a significant rise in quarterly production and sales volumes and said it is on track to meet 2021 production guidance of 3,400 mtV to 3,600 mtV. 

The Company reported group production in 1Q21 at 886 mtV (1Q21: 688 mtV) underpinned by improved operational stability at the group’s Vametco resource in the period. 

Vametco produced 278 mtV and 261 mtV for the months of May and June respectively, amid improved operational stability and performance following a 30-day shutdown in 1Q21. 

Bushveld has maintained Vametco's monthly production run-rate forecast for the rest of the year at c.240 mtV as a result of planned maintenance strategy to enable operational stability.   

Fortune Mojapelo, CEO of Bushveld Minerals, said the Company currently remains on track to meet the annual Group production guidance of between 3,400 mtV and 3,600 mtV. 

Bushveld highlighted that the recent unrest in South Africa this month has not impacted production, but said it had experienced logistics delays in getting final product to the port. 

While general international seaborne logistics pressures due to the COVID-19 pandemic remain. Bushveld said it continues to monitor the international logistics situation closely and that despite this, the Company still expects to maintain export volumes during 3Q21. 

"We are pleased to report a significant increase in quarterly production in Q2 2021, albeit from a low production base in Q1 2021. More than the production volume improvements, it is positive to see improved operational stability at Vametco,” commented Mojapelo. 

Commenting on the scope of the vanadium market, Bushveld said the market is expected to strengthen for the remainder of the year, according to Roskill, driven by higher demand as well as tighter supply, as Chinese steel slag producers are operating at close to capacity. 

Shares in Bushveld Minerals have increased by 8.49% during Wednesday morning trading.  

BMN price chart

The Company stated that vanadium prices are expected to remain strong in 2021 and gain further momentum in 2022 and 2023, given the predicted market tightness. As a result, Bushveld expects the market fundamentals to continue to support prices going forward. 

Bushveld said iron ore prices having reached their highest levels in the last five years to exceed the US$200/t level in May 2020 implies ‘a continuing disincentive for co-producers to blend local vanadium bearing magnetite feedstock with seaborne hematite ores.’ 

"We are pleased to see strong demand sustained by the increase in Chinese steel production, while momentum continues to build in the application of Vanadium Redox Flow Batteries in the growing energy storage sector. Consequently, we expect the market fundamentals to continue to support the vanadium price going forward,” added Mojapelo. 

Bushveld said it is now focused on completing the now expanded pre-feasibility studies at Vametco together with the technical studies currently under way at Vanchem in 4Q.  

Addressing shareholders, it explained these studies will determine the optimal path to increase production from Vametco and Vanchem ‘in the most capital efficient manner.’ 

Follow News & Updates from Bushveld Minerals here: FOLLOW
 

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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