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(Alliance News) - Bushveld Minerals Ltd on Tuesday reported a significantly narrowed interim loss as it upped revenue thanks to higher vanadium prices and a beneficial exchange rate.
In the six months ended June 30, the South Africa-focused vanadium producer and energy storage provider posted a pretax loss of USD1.2 million, narrowed significantly from a loss of USD22.7 million the previous year.
Revenue jumps to USD76.2 million from USD47.0 million, while cost of sales and other operating costs remained broadly flat at USD44.7 million and USD15.9 million respectively.
Bushveld cited higher vanadium prices and a weaker exchange rate between the South African rand and the US dollar for the increase in interim revenue.
"Bushveld had to navigate several headwinds during the period, as supply chains globally continued to remain congested, and inflation pressures returned on a global scale. We continue to target savings under our Cost Savings Programme in order to counter and contain some of these pressure," the company added.
Adjusted earnings before interest, tax, depreciation and amortisation total USD15.6 million, swinging from a loss of USD10.8 million a year prior.
Looking forward, the firm expects positive adjusted Ebitda to continue into the second half.
However, Bushveld revised its full-year production guidance downwards to between 3,900 metric tonnes vanadium and 4,100 mtV from between 4,200 mtV and 4,400 mtV previously.
This revision comes following lower than anticipated recoveries from Vanchem, due to Kiln 1 wind-down, electricity load shedding and a slower-than-planned ramp up post Kiln 3 coming online.
Shares in Bushveld were down 5.7% at 5.33 pence on Tuesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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