Motley Fool article12 Jun 2020 13:31
ushveld Minerals is another stock where the majority broker consensus is to buy. The firm produces Nitrovan vanadium, an additive for high-strength, low-alloy steel that can lower steel production costs.
The Bushveld share price is currently reflective of the trade-off between low vanadium prices and good business management. The former reduced revenue while the latter produced the lower overheads that compensated for that drop.
Although the effects of the Covid-19 pandemic are concerning for the firm, its Vametco mine’s first-quarter vanadium production rose despite the lockdown. Indeed, many analysts are expecting an increase in production for 2020.
As for Bushveld’s future, the recent three-year wage agreement with Vametco’s workers gives stability. Moreover, the firm hopes that the recent addition of the Vanchem plant will turn Bushveld Minerals into one of the most significant low-cost, and most vertically integrated, miners.