JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals widened its loss for the first half of the current financial year; however, much progress has been made in pursing its ultimate ambitions of becoming a low-cost, integrated vanadium producer.
The company posted a loss of £6.69-million in the six months to August 31, compared with a £32 763 loss in the first half of the prior financial year.
The total comprehensive loss for the half-year under review reached £7.15-million, compared with the total comprehensive profit for the period of £44 776 in the prior corresponding period the year before.
A basic and diluted loss a share of 0.88p was recorded for the first six months of the year, widening from the 0.01p apiece in the prior corresponding period.
Net cash from operating activities for the six months reached £424 279, up from the negative £82 202 in the first half of the prior year.
The company’s cash and cash equivalents contracted from £117 462 in the first half of the prior year to £73 351 for the period under review.
VANADIUM
The half-year under review marked a period of steady progress in Bushveld’s progression into a significant low-cost, integrated vanadium producer, “anchored” in the completion of the acquisition of Strategic Minerals Corporation (SMC), in partnership with Yellow Dragon, said CEO Fortune Mojapelo.
“The timing of the completion could not have been better, occurring during a time of significant increases in the vanadium price contributing to a marked improvement in [SMC subsidiary] Vametco's profitability and cash generation,” he said.
Bushveld held a positive outlook on the vanadium market, marked by sustained price growth and Vametco’s sterling performance during the period under review. Vametco’s half-year ends on June 30.
Its interim production, at 1 441 t of vanadium, was similar to production in the first half of 2016.
“Under the oversight of Bushveld and Yellow Dragon, Vametco commenced a multiphased expansion project to increase annual production to more than 5 000 t over the next three years,” Mojapelo said.
During the first half of this year, the unit’s earnings before interest, taxes, depreciation and amortisation increased to R85.5-million.
The third quarter produced even better results for the new addition.
“This market outlook provides a sound backdrop for the company's push to grow the vanadium platform through expansion initiatives at Vametco, as well as targeted brownfield opportunities in close proximity to the company's deposits,” he concluded.