REG - Bushveld Minerals Ld - Annual General Meeting Statement

Bushveld MineralsAnnouncement

06/08/2024 07:00

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RNS Number : 2679Z  Bushveld Minerals Limited  06 August 2024

Market Abuse Regulation ("MAR") Disclosure

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

06 August 2024

Bushveld Minerals Limited

("Bushveld" or the "Company")

Annual General Meeting Statement

Bushveld Minerals Limited (AIM:BMN), the integrated primary vanadium
producer, is pleased to provide a general update to shareholders ahead of the
Company's annual general meeting highlighting progress over the last year.

 

As set out in Bushveld's Q2 and H1 2024 Operational Update, the Company
continues to rationalise assets by cutting costs and reducing head count as
well as making progress on the turnaround initiatives at Vametco. The
programme has already seen improved production volumes and stability despite
supplier challenges.  Stabilised power supply from the local municipality is
another initiative that has enabled steady production.  As a result of these
measures, the outlook remains positive for the remainder of 2024 into 2025.

 

Furthermore, Bushveld has entered into a new agreement with OMF Fund III (F)
Limited ("Orion"), pursuant to which Orion agreed to provide further funding
up to a maximum of US$10 million, which will provide Bushveld with significant
additional liquidity in the near term, coupled with the funds received from
the disposal of Vanchem. The Company is also moving forward with the process
to dispose of investments in the sectors unrelated to the production of
vanadium, including the BELCO electrolyte asset as well as Lemur, which,
subject to execution of binding documentation, is expected to provide an
additional boost to the Group's liquidity through shedding c.US$4 million of
debt held at these assets. Access to additional working capital and liquidity
provided by the financing from Orion and the sale of non-core assets will
enable Bushveld to pay down its creditors and improve the state of the
corporate balance sheet, which will in turn help the Company maximise the
value extracted at Vametco.

 

Bushveld has endured a challenging period due to various factors in and out of
the Company's control, as vanadium pricing remained weak, while the creditor
overhang placed capital constraints on the Company and had a negative impact
on costs. However, Bushveld believes it has set up the right foundations for
enduring long-term success. Following the conditional sale of Vanchem,
Bushveld will have executed a strategic switch in direction that has resulted
in a more streamlined and effective business model with a singular focus on
being a pure upstream mining company. Bushveld also remains focused on
asserting effective cost control.  The restructuring of the Company's head
office and significant changes in Management are proving effective in reducing
costs. Finally, there are encouraging signs of a market rebound on the
horizon, such as the shift through new regulations in China relating to
increased vanadium content in steel rebar used for construction.

 

In order to accelerate Bushveld's transition towards building a sustainable,
cash-generating and low-cost production platform, the Board is performing a
proactive in-depth review of all of its options and business plan.  All
commodities are cyclical in nature with variable cycle duration of peaks and
troughs. The long-term average price of vanadium is in the $40/kg range. At
this level Bushveld would be highly cash generative and able to provide
investors with an attractive total return which, at current price levels,
remains challenging despite the planned cost cutting measures.

Other Matters

As mentioned in the Chairman's remarks in the annual report, we bid farewell
to David Noko as a board member and thank him for his wise counsel during his
tenure. As also announced, Mathews Senosi will be joining the board once the
formalities have been concluded as David's replacement. Our Chairman, Michael
Kirkwood, has also indicated that he will step down once a suitable candidate
has been identified.  This process is underway.

 

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

Bushveld is increasingly well positioned to benefit from rising Vanadium
prices as we continue our trajectory by, strengthening core operations. We
will look to engage with all our shareholders and work together to realise
value within the shortest timeframe.  We look forward to providing further
updates on this process in due course."

 

 

 

 Bushveld Minerals Limited                                                            +27 (0) 11 268 6555
 Craig Coltman, Chief Executive Officer

 SP Angel Corporate Finance LLP                 Nominated Adviser & Joint Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Abigail Wayne

 Hannam & Partners                              Financial Advisor & Joint Broker      +44 (0) 20 7907 8500
 Andrew Chubb / Matt Hasson / Jay Ashfield

 Tavistock                                      Financial PR                          +44 (0) 207 920 3150
 Gareth Tredway / Tara Vivian-Neal /

 James Whitaker

 

 

 

ENDS

 

 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a primary vanadium producer. It is one of the world's
three primary vanadium producers, offering compelling exposure to vanadium
through its upstream asset.

 

Detailed information on the Company and progress to date can be accessed on
the website www.bushveldminerals.com (//www.bushveldminerals.com)

 

 

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