Bushveld Minerals Ltd - South Africa focused-vanadium producer - Says feasibility and pre-feasibility studies of Vametco and Vanchem shows potential to increase production by about 50% to 8,000 million tonnes vanadium per annum through existing operations. Does note this growth will require USD151 million capital expenditure.
"In acquiring the two plants, Vametco and Vanchem, the company was mindful that significant capital expenditure would be required to unlock the full production and cost potential," Chief Executive Fortune Mojapelo says. "The company was also of the view that a combination of the acquisition and refurbishment costs would cost much less and transition the company into a producer in much shorter time than it would with a greenfield operation. What's more, the company could leverage cashflows to fund and source additional capital to implement this strategy."
Expects to hit sustainable production run rate of between 5,000 5,400 million tonnes vanadium per annum by the end of 2022.
Current stock price: 6.80 pence, down 6.9% on Wednesday
12-month change: down 55%
By Paul McGowan; paulmcgowan@alliancenews.com
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