Aim-listed Bushveld Minerals reached the upper end of its guidance for the year ended December 31, with production of 3 592 t of vanadium.
This was in line with guidance of between 3 400 t and 3 600 t, but below the 3 631 t produced in 2020.
Group sales were lower year-on-year at 3 314 t, owing to challenges in international logistics channels arising from Covid-19, and the civil unrest and resultant delays that ensued at local ports in July and August of last year.
With the company’s two operations – Vametco and Vanchem – performing well in the year under review, Bushveld has increased its production guidance for this year to between 4 200 t and 4 400 t, with volumes weighted towards the second half of the year, as Kiln 3 at Vanchem will soon be commissioned and ramped up.
Vametco’s production guidance is set at between 2 450 t and 2 550 t, while Vanchem is expected to produce between 1 750 t and 1 850 t of vanadium.
Bushveld envisions spending less capital expenditure this year, at $17-million, compared with the $29-million spent in 2021.
The company has cash and cash equivalents on hand of about $15-million.
CEO Fortune Mojapelo says demand for vanadium in the US, Europe and the rest of the world remains buoyant, while ferrovanadium prices have strengthened and currently trade at an average of about $35/kg across markets.
Bushveld continues to review prefeasibility and feasibility studies conducted at both operations during last year, including testing the economics of various growth options going forward.