TIDMBMN
RNS Number : 9378W
Bushveld Minerals Limited
20 November 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
20 November 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Vametco 3(rd) quarter operating results
Bushveld Minerals Limited (AIM: BMN), a mineral project
development company with a portfolio of vanadium and coal assets in
Southern Africa and an investment in tin, is pleased to provide an
operational update with respect to Bushveld Vametco Alloys
(Proprietary) Limited ("Vametco"), the South African vanadium
mining operation jointly acquired by the Company and Yellow Dragon
Holdings Limited ("Yellow Dragon") from Evraz Group S.A. in April
2017. Bushveld Vametco Limited ("Bushveld Vametco") has a 78.8%
shareholding in Strategic Minerals Corporation ("SMC"), which is
the ultimate holding company of Vametco. Bushveld Vametco is 45%
owned by the Company and 55% by Yellow Dragon.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"Vametco had a solid performance in the September 2017 quarter,
supported by a rising vanadium price, which traded at an average of
US$39.4/KgV(1) . This enabled revenue to increase by 29%, and
EBITDA by 69%, compared to the June 2017 quarter. The first phase
of the Vametco multi-phased expansion project was achieved in the
quarter, during which Vametco reached an annual production run rate
of 3,035 MTV. The completion of the expansion project will enhance
Vametco's existing competitive position in a structurally deficit
market."
Operational and financial highlights for Vametco (on a 100%
basis)(2) :
Description Unit Q3 CY17 YTD Q3 CY17 Q3 CY17 YTD CY17
CY17 vs Q2 vs Q3 vs YTD
CY17 CY16 CY16
------------------ ---------- -------- ------ -------- --------- ---------
Vanadium
produced (MTV)(3) 669 2,110 - 15.8% - 14.1% + 1.1%
------------------ ---------- -------- ------ -------- --------- ---------
Vanadium
sold (MTV)(3) 744 2,085 + 6.7% + 11.4% + 3.0%
------------------ ---------- -------- ------ -------- --------- ---------
Vanadium
price(1) US$/KgV 39.4 30.6 + 46.1% + 59.4% + 54.9%
------------------ ---------- -------- ------ -------- --------- ---------
USD/ZAR exchange
rate US$:ZAR 13.1 13.2 - 1.2% - 7.3% - 12.0%
------------------ ---------- -------- ------ -------- --------- ---------
Revenue ZAR'm 305.1 744.3 + 29.0% + 60.7% + 36.5%
------------------ ---------- -------- ------ -------- --------- ---------
EBITDA ZAR'm 90.8 189.5 + 69.3% + 392.8% + 778.4%
------------------ ---------- -------- ------ -------- --------- ---------
Production ZAR/kg
costs(4) V 237.2 213.8 + 16.8% + 23.0% + 15.8%
------------------ ---------- -------- ------ -------- --------- ---------
1. The vanadium price is based on the FeV mid average price for
the period, published by Metal bulletin.
2. Bushveld's net attributable interest of the above production
and financials is approximately 26%, and will be accounted for
using the equity method.
3. MTV = metric tonnes of vanadium.
4. Excludes depreciation and royalties.
Vametco produced 669 MTV in the form of Nitrovan(R) from own
magnetite concentrate during the September 2017 quarter. Vanadium
production decreased by approximately 16% relative to the June 2017
quarter mostly due to an unplanned refractory repair to the kiln
(treatment plant) in September. Vanadium production decreased by
14% relative to the September 2016 quarter due to no availability
of vanadium-containing slag in 2017 while the ore beneficiation
upgrade was still in construction. A two week planned maintenance
period is scheduled for the December 2017 quarter.
Vametco has a current annual plant capacity of approximately
3,035 MTV producing Nitrovan(R) and modified vanadium oxide ("MVO"
or "V(2) O(3) ").
Projects
Vametco multi-phased expansion project
Under the oversight of Bushveld and Yellow Dragon, Vametco has
commenced a multi-phased expansion project to increase annual
production to more than 5,000 MTV over the next three years. The
first phase of the expansion was achieved in the September 2017
quarter, during which Vametco reached an annual production run rate
of 3,035 MTV. The following two phases of expansion will increase
production to 3,750 MTV per annum by June 2018 and to over 5,000
MTV per annum by the end of 2019. The presence of an integrated
platform will allow the development of downstream operations as
well as to achieve product diversification.
Description of Vametco operations:
Vametco is located near Brits on the Eastern Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces Nitrovan(R), a trademark
product sold in major steel markets across the world. The mine lies
adjacent to the Brits Vanadium Project, which will in future serve
as an alternative source of near surface run of mine (ROM) ore feed
to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
kiln (treatment plant) followed by leaching, milling and
precipitation processes and finally into the Nitrovan(R) plant to
produce vanadium products.
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief
Executive Officer
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Nominated Adviser & Broker
Ewan Leggat
Blytheweigh
Financial PR
Tim Blythe / Nick Elwes +44 (0) 207 138 3204
Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed mineral project development
company with a portfolio of vanadium and coal assets in Southern
Africa and an investment in tin.
The Company's flagship vanadium platform includes the Mokopane
Vanadium Project, the Brits Vanadium Project, and an interest in
Bushveld Vametco Alloys (Pty) Ltd primary vanadium mining and
processing company. The coal platform comprises the wholly-owned
Imaloto Coal Project, which is being developed as one of
Madagascar's leading independent power producers. The Company's tin
interests are held through its shareholding in AIM listed AfriTin
Mining Limited.
Bushveld's vision is to become one of the largest, low cost,
integrated primary vanadium producers through owned high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
Whilst the demand for vanadium remains largely anchored in the
steel industry, Bushveld Minerals believes there is strong
potential for an imminent and significant global vanadium demand
surge from the fast-growing energy storage market, particularly
through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website: www.bushveldminerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDKMMZMVGFGNZG
(END) Dow Jones Newswires
November 20, 2017 02:00 ET (07:00 GMT)
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From May 2024 to Jun 2024
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From Jun 2023 to Jun 2024
