Aim-listed Bushveld Minerals’ earnings before interest, taxes, depreciation and amortisation (Ebitda) for the six months to June 30 increased by 439% year-on-year to R521-million.

Sales revenue increased by 139% to R1-billion, compared with R439-million in the first half of 2017, primarily owing to higher vanadium prices.

Bushveld pointed out on Wednesday that the Metal Bulletin ferrovanadium mid-average price for the first half of the year was $65.50/kg, an increase of about 150% compared with the average price of $26.20/kg in the first half of 2017.

Bushveld’s vanadium platform comprises the Bushveld Vametco, Mokopane and Brits Vanadium projects.

Phase 2 of the Vametco expansion project has been completed within budget and on time. It comprised the commissioning of a third primary mill and secondary crusher. This phase increased yearly production capacity to 3 750 t/y of vanadium, from the 3 000 t/y of vanadium achieved in Phase 1.

Vanadium production for the second quarter was 629 t in the form of Nitrovan from magnetite concentrate, compared with 794 t in the second quarter of 2017 and 731 t in the first quarter of this year.

The production decrease was owing to a planned kiln maintenance programme, installation and commissioning of the mill and crusher as part of Phase 2 of the expansion, and work stoppages as a result of unprotected industrial action.

The maintenance programme is part of productivity initiatives and Vametco's continued improvement across the supply chain. These 'de-bottlenecking' activities are planned to increase volume at the roast / leach circuit, which will become evident during the course of the second half of the year.

Vanadium production for the first half of the year was therefore 1 360 t, which is less than the anticipated volumes as per the company’s guidance, owing to lower-than-expected vanadium grades in magnetite from run-of-mine material, and the same factors from the second quarter.

Vametco’s production guidance for the full year has, therefore, been revised to between 2 850 t and 3 000 t.