Bushveld Minerals* (BMN LN) 24p, Mkt Cap £269m – Brits vanadium mineral resource restatement on percentage ownership (Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin) (Vanchem: Our figures assume Bushveld completes the acquisition of Vanchem later this year) BUY – Valuation 90p • Bushveld Minerals report indicated attributable resources at the Brits vanadium project as 28mt of ore containing 129,000t of vanadium pentoxide. • The total indicated and inferred resource is also restated at 41.8mt containing some 195,800t of vanadium pentoxide. • The resource is calculated on 62.5% ownership vs the 74% ownership interested which was incorrectly stated in Bushveld’s previous announcement. • Valuation: we value Bushveld Energy at US$149m representing 8.8 pence per share to our valuation on Bushveld Minerals. We have added 7.93p/s for Bushveld’s other assets, cash and subsidiaries including Lemur and the P-Q Iron and Titanium project. Our revised ferro-vanadium price forecast adjusts our valuation for the Vametco-Vanchem vanadium business to £801m representing 72 pence per share. • Vanadium price assumption: • We are assuming a Ferro-vanadium price forecasts for 2019 of $50/kgV from $60.4/kgV in response to the fall in ferro-vanadium prices to around US$36/kgV FOB China. For 2020 we assume $45/kgV and we maintain out longer term price forecast at $45/kgV. • We still see vanadium demand and prices rising in China in response to better compliance with the legislation introduced in November last year. • Demand for vanadium electrolyte for Vanadium Redox Flow Batteries VRFBs should also come into the market to support our estimate price assumptions. • While demand for vanadium for electrolyte may be price sensitive we see the invention of new lease finance structures for the vanadium in VRFB’s as enabling the financing of VRFBs at higher vanadium price levels going forward. Conclusion: The Brit’s resource combined with the Vametco mine and Mokopane mine resources give Bushveld more than enough high-grade vanadium ore to mine and should keep the operations going for the next 20-50 years. The restatement makes no difference to our valuation. * SP Angel acts as Nomad & Broker to Bushveld Minerals
Bushveld Minerals Limited (BMN.L) Announced a maiden Mineral Resource estimate for the Brits Vanadium Project. The maiden Mineral Resource incorporates data from the 2018 drilling campaign comprising 26 drill holes over a total of 2,967m of diamond drilling. The aggregate Inferred and Indicated mineral resource distributed across the three seams is reported as 66.8Mt at an average grade of 1.58% V2O5 in magnetite, at a cut-off grade of 20% magnetite in whole rock for 175,400 tonnes of contained vanadium. The Indicated Mineral Resource tonnages account for 67% of the total combined mineral resource and stand at 44.9Mt with an average grade of 1.59% V2O5 in magnetite for 115,600 tonnes of contained vanadium across the three seams. Also, the mineral resource is reported up to a depth of 150m below surface and based on the drilling on the western and central blocks of the farm Uitvalgrond Portion 3 which extends over a strike length of approximately 1.65km to the most eastern fault where the last line of drilling was completed.
RNS Number: 6079 F Bushveld Minerals Limited 16 July 2019 The following amendments have been made to the' Brits Vanadium Maiden Mineral Resource' announcement released on 21 June 2019 at 07:00 under RNS No. 9579 C.. The net attributable figures in Table 2 incorrectly stated, and were calculated on, a 74 per cent ownership interest as opposed to Bushveld's 62.5 per...
RNS Number: 6079 F Bushveld Minerals Limited 16 July 2019 The following amendments have been made to the' Brits Vanadium Maiden Mineral Resource' announcement released on 21 June 2019 at 07:00 under RNS No. 9579 C.. The net attributable figures in Table 2 incorrectly stated, and were calculated on, a 74 per cent ownership interest as opposed to Bushveld's 62.5 per...
Bushveld Minerals* (BMN LN) 24p, Mkt Cap £269m – Vanadium rental / leasing structure to accelerate value creation. Vanadium forecasts adjusted. (Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin) (Vanchem: Our figures assume Bushveld completes the acquisition of Vanchem later this year) BUY – Valuation 90p • We are adjusting our valuation in Bushveld Minerals following our review of value offered by the new Vanchem business, Bushveld Energy and the other business units. • We have also adjusted our assumed vanadium price forecasts to account for the recent price correction. • Bushveld Minerals recently announced it is to acquire the operating Vanchem vanadium business in South Africa, a move which should bring low-cost expansion and greater flexibility to the group. • Bushveld agreed to pay US$68m to acquire the Vanchem plant and facilities to be settled in two stages. US$6.8m was paid on 30 April 2019, US$61.2m will be settled no later than 31 October plus a 12 month period after completion of the Transaction. A further US$0.5-1m will be paid to VVP, which provided services to Vanchem. • Vanchem is currently producing around 80mtV of vanadium per month but is also in Business Administration in South Africa. This is similar to being in Administration in the UK though the process appears to be more helpful to the longer term operation of businesses than our own medieval system. • Vanadium price assumption: • We are pulling back our Ferro-vanadium price forecasts for 2019 to $50/kgV from $60.4/kgV in response to the fall in ferro-vanadium prices to around US$36/kgV FOB China. For 2020 we assume $45/kgV and we maintain out longer term price forecast at $45/kgV. • We still see vanadium demand and prices rising in China in response to better compliance with the legislation introduced in November last year. • Demand for vanadium electrolyte for Vanadium Redox Flow Batteries VRFBs should also come into the market to support our estimate price assumptions. • While demand for vanadium for electrolyte may be price sensitive we see the invention of new lease finance structures for the vanadium in VRFB’s as enabling the financing of VRFBs at higher vanadium price levels going forward. • Bushveld Energy: Bushveld’s vanadium rental financing service should accelerate the planning and ordering of new VRFB systems to support South Africa’s power grid. • Critically it should reduce the cost of financing and spread the cost of the vanadium in the electrolyte over a longer period rendering the cost of vanadium less critical. • We are raising our valuation for Bushveld Energy to US$149m as we see the ‘VRFB’ business as offering a practical solution for the storage of growing solar and wind power in South Africa. This assumes a relatively low margin on electrolyte sales for VRFB batteries and a more normal project finance type cost for VRFB unit sales. • While there are other battery solutions on offer, many of these suffer from high parasitic losses, high component renewal costs or increased risk of outright failure leaving VRFB’s as the preferred grid-scale storage solution for power utilities. • ADROIT market research forecast CAGR growth of 8.3%pa for grid power storage in Europe to hit $1.11bn by 2025 with VRFBs expected to account for 83.8% of the total market share. • Bushveld Energy aims to participate in 1,000 MWh of opportunities in Africa by 2020 and there is sufficient current demand in the market for vanadium electrolyte to support the installation of a 200 MWh capacity facility in South Africa. • We have cautiously assumed a more modest market of just 300,000MWh in 2021 and for Bushveld to be involved in the development of around half the VFRB instillations and electrolyte sales. • Bushveld’s current VRFB jv is being trialled at ESKOM should have a peak output of 450kWh as a single unit. It should be relatively simple to roll out multiple units to support the rapid growth in wind and solar farms being installed in South Africa as ESKOM moves to supplement its ageing coal-fired infrastructure. • Valuation: we value Bushveld Energy at US$149m representing 8.8 pence per share to our valuation on Bushveld Minerals. We have added 7.93p/s for Bushveld’s other assets, cash and subsidiaries including Lemur and the P-Q Iron and Titanium project. Our revised ferro-vanadium price forecast adjusts our valuation for the Vametco-Vanchem vanadium business to £801m representing 72 pence per share. Conclusion: Bushveld is extraordinarily well placed to participate in the high-tech Vanadium Redox Flow Battery business. The integration of the business to produce vanadium electrolyte from its in-house vanadium feedstock gives its security of supply, while the new and innovative lease-finance model for the vanadium in electrolyte should make the financing of VRFB’s less sensitive to spot vanadium prices. We see this as a major advantage for Bushveld placing the company at the very centre of this valuable growth market. Bushveld’s location in South Africa should also help in the participation of a World Bank funded ESKOM renewables Support Project which is designed to facilitate accelerated development of large scale renewable energy capacity in support of the long-term carbon mitigation strategy of South Africa. *SP Angel acts as Nomad & Broker to Bushveld Minerals.
RNS Number: 2383 E Bushveld Minerals Limited 02 July 2019 2 July 2019. Bushveld Minerals Limited, the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, is pleased to announce that all resolutions put to shareholders at the Annual General Meeting held earlier today were duly passed..
Bushveld Minerals* (BMN LN) 24p, Mkt Cap £269m – Vanadium rental / leasing structure to accelerate value creation. Vanadium forecasts adjusted. (Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin) (Vanchem: Our figures assume Bushveld completes the acquisition of Vanchem later this year) BUY – Valuation 90p • We are adjusting our valuation in Bushveld Minerals following our review of value offered by the new Vanchem business, Bushveld Energy and the other business units. • We have also adjusted our assumed vanadium price forecasts to account for the recent price correction. • Bushveld Minerals recently announced it is to acquire the operating Vanchem vanadium business in South Africa, a move which should bring low-cost expansion and greater flexibility to the group. • Bushveld agreed to pay US$68m to acquire the Vanchem plant and facilities to be settled in two stages. US$6.8m was paid on 30 April 2019, US$61.2m will be settled no later than 31 October plus a 12 month period after completion of the Transaction. A further US$0.5-1m will be paid to VVP, which provided services to Vanchem. • Vanchem is currently producing around 80mtV of vanadium per month but is also in Business Administration in South Africa. This is similar to being in Administration in the UK though the process appears to be more helpful to the longer term operation of businesses than our own medieval system. • Vanadium price assumption: • We are pulling back our Ferro-vanadium price forecasts for 2019 to $50/kgV from $60.4/kgV in response to the fall in ferro-vanadium prices to around US$36/kgV FOB China. For 2020 we assume $45/kgV and we maintain out longer term price forecast at $45/kgV. • We still see vanadium demand and prices rising in China in response to better compliance with the legislation introduced in November last year. • Demand for vanadium electrolyte for Vanadium Redox Flow Batteries VRFBs should also come into the market to support our estimate price assumptions. • While demand for vanadium for electrolyte may be price sensitive we see the invention of new lease finance structures for the vanadium in VRFB’s as enabling the financing of VRFBs at higher vanadium price levels going forward. • Bushveld Energy: Bushveld’s vanadium rental financing service should accelerate the planning and ordering of new VRFB systems to support South Africa’s power grid. • Critically it should reduce the cost of financing and spread the cost of the vanadium in the electrolyte over a longer period rendering the cost of vanadium less critical. • We are raising our valuation for Bushveld Energy to US$149m as we see the ‘VRFB’ business as offering a practical solution for the storage of growing solar and wind power in South Africa. This assumes a relatively low margin on electrolyte sales for VRFB batteries and a more normal project finance type cost for VRFB unit sales. • While there are other battery solutions on offer, many of these suffer from high parasitic losses, high component renewal costs or increased risk of outright failure leaving VRFB’s as the preferred grid-scale storage solution for power utilities. • ADROIT market research forecast CAGR growth of 8.3%pa for grid power storage in Europe to hit $1.11bn by 2025 with VRFBs expected to account for 83.8% of the total market share. • Bushveld Energy aims to participate in 1,000 MWh of opportunities in Africa by 2020 and there is sufficient current demand in the market for vanadium electrolyte to support the installation of a 200 MWh capacity facility in South Africa. • We have cautiously assumed a more modest market of just 300,000MWh in 2021 and for Bushveld to be involved in the development of around half the VFRB instillations and electrolyte sales. • Bushveld’s current VRFB jv is being trialled at ESKOM should have a peak output of 450kWh as a single unit. It should be relatively simple to roll out multiple units to support the rapid growth in wind and solar farms being installed in South Africa as ESKOM moves to supplement its ageing coal-fired infrastructure. • Valuation: we value Bushveld Energy at US$149m representing 8.8 pence per share to our valuation on Bushveld Minerals. We have added 7.93p/s for Bushveld’s other assets, cash and subsidiaries including Lemur and the P-Q Iron and Titanium project. Our revised ferro-vanadium price forecast adjusts our valuation for the Vametco-Vanchem vanadium business to £801m representing 72 pence per share. Conclusion: Bushveld is extraordinarily well placed to participate in the high-tech Vanadium Redox Flow Battery business. The integration of the business to produce vanadium electrolyte from its in-house vanadium feedstock gives its security of supply, while the new and innovative lease-finance model for the vanadium in electrolyte should make the financing of VRFB’s less sensitive to spot vanadium prices. We see this as a major advantage for Bushveld placing the company at the very centre of this valuable growth market. Bushveld’s location in South Africa should also help in the participation of a World Bank funded ESKOM renewables Support Project which is designed to facilitate accelerated development of large scale renewable energy capacity in support of the long-term carbon mitigation strategy of South Africa. *SP Angel acts as Nomad & Broker to Bushveld Minerals.
Bushveld Minerals Limited (BMN.L) Announced a maiden Mineral Resource estimate for the Brits Vanadium Project, that the indicated Mineral Resource tonnages account for 67% of the total combined Mineral Resource and stand at 44.9Mt with an average grade of 1.59% V2O5 in magnetite for 115,600 tonnes of contained vanadium across the three seams. Further, the mineral resource is reported up to a depth of 150m below surface and based on the drilling on the western and central blocks of the farm Uitvalgrond Portion 3 which extends over a strike length of approximately 1.65km to the most eastern fault where the last line of drilling was completed.
Bushveld Minerals* (BMN LN) 25p, Mkt Cap £283m – Brits Vanadium Project maiden resource at 66.8mt grading 1.58% V2O5 in magnetite (Bushveld Minerals owns 84% of Bushveld Energy in South Africa) BUY – Target price under review • Bushveld Minerals report a maiden Mineral Resource estimate for the Brits Vanadium Project at 66.8mt grading 1.58% V2O5 in magnetite using a cut-off grade of 20% magnetite. • The resource is driven off 26 drill holes for a total of 2,967m of diamond drilling. • The resource contains 175,400t of contained vanadium indicating a mine life of around 15 years on production of around 10,000tpa of V2O5 • Some 67% of the resource is indicated at 44.9mt grading 1.59% V2O5 in magnetite for 115,600t of contained vanadium across the three seams. • The Lower Seam represents 83% of the total tonnage at 55.5mt grading 1.58% V2O5 in magnetite for 137,000t of contained vanadium. • The Intermediate Seam has the highest grade of the three seams at 1.76% V2O5 in magnetite but with a relatively low tonnage. • This may provide the opportunity to mine higher grades on a more selective mining basis if practical. • The Brits Vanadium resource is slightly lower than at the current operating Vametco Mine due to the general geological trend for grades to decrease from west to east across the Bushveld Complex. • The resource is reported to a depth of 150m and over around 1.65km with potential for continuation for a further 1km to the east. • Management comment that the new resource is an important step our path to producing over 8,400mtVpa with the Brits resource giving improves optionality for ore feed Conclusion: Brits is among the world’s higher grade vanadium resources and its location next to the existing Vametco mine and process plant makes it much more valuable. *SP Angel acts as Nomad & Broker to Bushveld Minerals.
RNS Number: 9579 C Bushveld Minerals Limited 21 June 2019 Market Abuse Regulation Disclosure. Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation No 596/ 2014 until the release of this announcement.. The Brits Project is located on Portion 3 of the farm Uitvalgrond 431 JQ, near...
Bushveld Minerals* (BMN LN) 27p, Mkt Cap £302m – Bushveld Energy develops rental product for vanadium electrolyte in VRFB batteries (Bushveld Minerals owns 84% of Bushveld Energy in South Africa) BUY – Target price under review • Bushveld Energy report management have developed an innovative method of enabling consumers to rent vanadium electrolyte for industrial-scale batteries. • Grid-scale Vanadium Redox Flow Batteries ‘VFRB’ require significant quantities of vanadium in electrolyte form for their operation significantly raising the cost of the battery when vanadium prices are strong. • There is some $200,000 worth of vanadium in the Bushveld’s joint venture UET battery which fills a 20ft shipping container. • Bushveld has worked together with Avalon Battery to formulate a financial and legal structure for the rental of the rental product to work for the electricity customer, the battery company and the vanadium producer. o “Avalon's customer, Santa Cruz Westside Electric Inc., doing business as Sandbar Solar & Electric ("Sandbar"), a leading Santa Cruz, California-based installer of commercial, industrial, and residential solar photovoltaic ("PV') systems, recently installed a solar PV mini grid at its 11,500 square foot facility. Sandbar incorporated an energy storage system consisting of three Avalon Vanadium Redox Flow Batteries ("VRFBs") for full independence from the electric grid. Sandbar chose to rent the vanadium electrolyte component of the Avalon batteries from Avalon, rather than purchase it outright, due to the cost efficiencies of the Bushveld-Avalon rental structure. o Batteries that use vanadium electrolyte to store energy have a major advantage over competing battery technologies as vanadium does not degrade, therefore, the performance of electrolyte batteries does not deteriorate with age. Renting the electrolyte reduces capital costs, and essential consistent performance reduces overall costs, making VRFBs the most dependable, safe, and economical battery for energy storage systems.” • Eskom are running trials with the Bushveld / UET battery over the next 14-20 months and may start to order larger scale vanadium batteries for grid before the end of the trial. We expect ESKOM to discover further grid-scale applications for VFRB batteries as the trial progresses. • The number of VFRB trials indicate significant new interest in the technology for Grid storage as lithium-ion batteries shortages become the norm and with a significant number of fires at li-ion grid-instillations (21 fires at LI-ion plants in S Korea). • South Africa is also looking to avert a developing energy crisis through the instillation of substantial new capacity in wind and solar farms. The effect of this is to require substantial grid-scale battery storage to ensure continuity of service as South Africa’s coal-fired power generation struggles to meet demand. • The Word Bank is looking to support the development of new ‘renewable’ energy production and to prevent a potential total collapse of the South African grid system. • The multilateral bank has committed US$1bn to battery storage for energy systems in low and middle-income countries which is expected to mobilise an additional US$4bn in concessional climate financing and public and private investments in a programme which aims to finance 17.5GWh of battery storage by 2025;. • South Africa’s draft 2018 Integrated Resource Plan is looking for the development of 15,000MW of new renewable electricity generation by 2040; 9,000MW in peaking generation capacity with provision for alternative technologies (such as battery energy storage) to participate; and a new allocation of an additional 200MW per annum for small scale embedded generation that can include storage. • Eskom is preparing to roll-out 1,400MWh of battery energy this year with completion by 2022.. • Valuation: we value Bushveld Energy at US$64m representing 3.74 pence per share to our valuation on Bushveld Minerals. Conclusion: This agreement now enables Power Utilities to use a rental structure to fund the contained vanadium in VFRBs. This should make VRFB’s more competitive compared with Li-ion instillations and enable the rollout of significant numbers of new VFRBs for Grid instillation. While the cost of vanadium in a VFRB is significant the leasing model should render the vanadium price to be less material as its cost should be amortised over a long period. *SP Angel acts as Nomad & Broker to Bushveld Minerals.
RNS Number: 6530 B Bushveld Minerals Limited 10 June 2019. Bushveld Minerals Limited, the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, is pleased to announce, that its 84%- owned energy subsidiary, Bushveld Energy Limited, has enabled the successful deployment of an innovative vanadium...
Bushveld Minerals* (BMN LN) 27p, Mkt Cap £302m – Results highlight rapid growth of business with Vametco with further upside to come from Vanchem BUY – Target price to be adjusted following further review of income and expenses • Bushveld Minerals report full year results for 2018. • Sales from Vametco appear higher than our estimate at US$192m vs our $178m forecast due to our inclusion of a sales discount in our sales estimate. • Sales and distribution costs are split out in the accounts at US$10.7m accounting for much of the difference • There is also some impact form due to the timing of vanadium sales in relation to some big moves in vanadium prices in the year. • The price discount we normally apply to vanadium sales appears to have narrowed in last year’s unusual pricing environment where consumers were competing for available stock and we assume the narrowing of the discount should continue as the market is forecast to remain in a supply / demand deficit. • Cost of sales were slightly lower than expected at US$65m vs our US$70.5m estimate. Again, last year was unusual in terms of Bushveld’s consolidation of its ownership combined with several unofficial stoppages relating to promises made by previous management on a dispute which we believe has now been resolved. • Other Operating Income: The company also made US$7m of other operating income which looks good. • Other mine operating costs and Idle plant costs came to US$5.2m. We would not expect to see significant costs in these areas going forward. • Administration expenses of US$23m include US$8.3m worth of shares issued, US$7m of staff costs, US$1.9m of professional fees and US$5.5m of Other Expenses. • Payments to senior employees, staff and directors were seen as long overdue due given the relatively low salaries previously paid and need to retain the team at Vametco. • The team is now working well, focussing on reducing costs while improving production through the better running of the Vametco plant. • Their expertise should also be of great benefit to the Vamchem plant when it is consolidated into the group and as Vanchem restores production at its idled furnaces. • Group Operating Profit came in at US$95m vs our US$107m due to these additional Admin expenses. • Finance Income at US$2m was balanced by Finance costs of US$1.2m. • Share based payments for Economic Empowerment transactioncost US$3.2m . o Movement in earnout estimate cost a further US$6m and was part of the ongoing cost of acquiring the Vametco mine and plant. o Pre-Tax profit of US$86m was therefore adjusted lower than our US$106m forecast due to the accounting treatment effectively bringing the earnout expense forward . o Taxation of US$37m was higher than our US$30m estimate due to the additional ‘Other operating income’ of US$7m and higher revenue recorded pre selling and distribution costs. o Post-tax profit came in at US$87m vs our US$76m estimate due principally to the adjustments described above. o Earnings per share came in at 2.9USc vs -0.2USc a year earlier. Conclusion: Bushveld results record a busy and volatile year through 2018. The figures reflect the innovation of the group, the huge transition made and some understandable expenses in this transition. The results indicate good potential to build on last year and to continue to grow the business with the Vanchem acquisition. *SP Angel acts as Nomad & broker to Bushveld Minerals.
Bushveld Minerals Limited (BMN.L) Announced, in its final results for the period ended 31 December 2018, that its total revenue stood at $192.09 million, compared to $2.85 million in the preceding year. Profit after tax was $49.00 million compared to a loss after tax of $0.89 million. The company's diluted earnings per share was 2.90c, compared to a loss per share of 0.20c
Bushveld Minerals Limited, the AIM listed, integrated primary vanadium producer, with ownership of high-grade assets in South Africa, is pleased to announce its financial results for the year ended 31 December 2018. The Annual General Meeting will be held at 18-20 Le Pollet, St Peter Port, Guernsey GY1 1 WH at 11 a.m. on Tuesday, 2nd July 2019.. ·Raised over US $20 m in an...
Bushveld Minerals* (BMN LN) 28.5p, Mkt Cap £319m – Vametco ore reserve grade rises to 2.02% as reserve more than doubles to 279,100t of V2O5 in magnetite BUY – Target price 90p (Bushveld Minerals hold 9.5% of AfriTin which has the Uis mine in Namibia) (Bushveld holds 71% of the Vametco mine and process plant in South Africa) (Bushveld recently agreed to buy 100% of the Vanchem process plant and associated mine in South Africa) • Bushveld Minerals report a significant increase in the grade and scale of the vanadium reserve at the Vametco mine in South Africa. • Drilling and reserve evaluation shows the grade to has risen to 2.02% V2O5 in magnetite from 1.96% estimated previously. • This is a meaningful increase in the grade and shows the Vametco to still rank as one of the world’s highest grade vanadium mines. • Ore reserves have also rise to 279,100t of contained vanadium in magnetite from 137,152t previously. • Indicated resource, which are less well defined, also rises by 187% to 965,900t of V2O5 in magnetite due to a number of recently completed drill holes. • Probable ore reserves are 48.4mt across the three seams averaging a grade of 2.2% V2O5 and an average magnetite content of 28.5% in whole rock. • The Lower seam varies from 13.8-52m in thickness with 40.2mt grading a higher 2.05% V2O5.in magnetite and an average magnetite of 29.4% for 135,600t of vanadium. • The figures reflect the work done on the geology and an new focus on better managing and scheduling the mine which should add meaningfully to the operations. Ferro-vanadium • Ferrovanadium prices stabalised at $35-36/kgV in Europe last week. • Prices are now at $35-39kgV in China having fallen to better match European levels. • European buyers have held back from vanadium purchases due to slowing German and Eurozone economic growth, recession in Italy and the potential impact of Brexit. AfriTin facility • Bushveld Minerals have agreed to provide working capital support financing for ~$2.1m to AfriTin. • The 12-month facility to AfriTin is intended to provide working capital through the commissioning of AfriTin’s ‘Uis’ tin mine later this year. • The standby facility interest rate is at 12.5% and is secured against AfriTin’s process plant though it would be odd if having spun off AfriTin if Bushveld were to effectively repossess the operation. • Certain conditions apply to the drawdown including the completion of a £3m funding at AfriTin. Share price movements • Bushveld management commented yesterday on the company’s share price movement. • Management state “it is not aware of any corporate developments that support such a movement. The Company notes the recent falls in the Vanadium price but believes the vanadium market remains in a structural deficit that will support higher prices in the medium to long term”. • The stock which opened at 22.75p yesterday morning and fell a further 11% to 19.5p then rallied by around 50% to 29.5p following the announcement. • We are sorry if any short-sellers were hurt in yesterday’s rally. *SP Angel acts as Nomad & broker to Bushveld Minerals.
Bushveld Minerals Limited (BMN.L) Announced an updated Mineral Resource and Ore Reserve for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex. The updated Mineral Resource and Ore Reserve incorporates data from the 2018 drilling campaign comprising 13 drillholes over a total of 1,506 m of diamond drilling and has been compiled in accordance with JORC (2012). Ore Reserves have more than doubled to 279,100 tonnes V2O5 in magnetite (previously 137,152 tonnes V2O5 in magnetite), notwithstanding production of approximately 5,700 metric tonnes of vanadium (between October 2017 and March 2019) while the grade has increased by 3 per cent to 2.02 per cent V2O5 (previously 1.96 per cent V2O5). Indicated Resources have increased by 187 per cent. to 965,900 tonnes of V2O5 in magnetite (previously 336,604 tonnes V2O5 in magnetite). The recently drilled holes added further confidence to the Mineral Resource resulting in a higher ratio of Indicated Mineral Resource to the Inferred Mineral Resources, constituting 75 per cent. of the Total Mineral Resource. The aggregate Inferred and Indicated Mineral Resource is distributed across three Seams (The Lower, Intermediate and Upper Seams) and is reported as 186.7 Mt at an average grade of 1.98 per cent V2O5 (in magnetite), with an average magnetite content of 35.0 per cent (in whole rock) for 719,300 tonnes of contained vanadium.
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Company Profile

Bushveld Minerals Limited is an integrated vanadium producer supplying more than 3% of the global vanadium with plans to grow this to >5% in the short term. The Company's flagship vanadium platform includes a 59.1% controlling interest in Bushveld Vametco Alloys (Pty) Ltd a primary vanadium mining and processing company which has one of the world's largest high grade primary vanadium resources. In addition, Bushveld Minerals is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries.

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Locations

HQ
18-20 Le Pollet
St. Peters Port
GY1 1WH
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