Strategic Update (from RNS)1 Feb 2023 00:02
This is a great summary of what BMN have achieved over the last year or two and what are the future plans:
“ STRATEGIC UPDATE
Substantive long term capital investment undertaken by the Group over the past five years has supported Bushveld on its mission to become a leading global low-cost, vertically integrated primary vanadium platform. As it stands today, the Group is one of only three operating primary vanadium producers which owns two of the world's four operating primary vanadium processing facilities and with a diversified vanadium product portfolio to serve its customers globally.
This period of extensive capital investment, refurbishment and optimisation of Vametco has resulted in it operating consistently and producing at a steady state level, while the critical refurbishment at Vanchem means that it is now capable of producing at a significantly increased production level, subject to the constraints of ongoing electricity load shedding in South Africa.
Despite the significant challenges faced as a result of the impact of the Covid-19 pandemic, macro-economic headwinds and the aforementioned electricity crisis in South Africa, the Company has increased production and is well positioned to deliver further sustainable growth as it looks to a future in which vanadium will have an increasingly important role as a green commodity.
Looking ahead, the strategic focus of the Group is on building a sustainable, cash-generative, low-cost production and processing platform to support the needs of the steel, chemical and energy sectors. A continued focus on operating and cost efficiencies will be largely driven by the further growth in throughput as the Company targets a sustainable production run rate of 5,000 to 5,400 mtV over the near-term, as well as continued focus on efficiencies and cost saving initiatives.
Bushveld Energy continues to make progress with both the Vametco hybrid mini-grid and the Bushveld Electrolyte Company ("BELCO") expected to be in operation during H1 2023. The commissioning of the electrolyte manufacturing plant will be a major achievement underpinning the Group's vertical integration strategy and opening up a new market for our products.
Furthermore, simplification of the Group structure with the carve-out of Bushveld Energy means that the Group is well-positioned to optimise its financing and investment focus whilst delivering value for shareholders.”
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