Last checked at 13 Dec 2023 07:00
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.
13 December 2023
Bushveld Minerals Limited
("Bushveld Minerals", "Bushveld", the "Group" or the "Company")
Corporate Update
Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, announces a corporate update ahead of an investor presentation by Craig Coltman, the Company's Chief Executive Officer, on the Investor Meet Company platform today.
Group Head Office Restructuring
The Company has been implementing various strategic cost curtailment measures aimed at ensuring the long-term competitiveness and financial stability of the Group as well as rightsizing headcount at the Group's head office, given Bushveld's renewed focus on its core operational assets.
The Company's focus, in the short term, is on reducing costs and the strategic allocation of capital to drive enduring and profitable production. In line with South Africa's Section 189 of the Labour Relations Act of 1995, notices have been issued to impacted Group Head Office employees.
This decision is driven partly by global market conditions, but also by the recent decision to focus on our core operating assets, Vametco and Vanchem, while disposing of other assets, including our downstream energy assets and the Mokopane development project.
Approximately 40% of head office positions will be impacted. This strategic move is expected to result in an annual saving of approximately US$1.5 million per annum.
The wellbeing of all employees remains the Company's top priority and the Section 189 process will be conducted with transparency and adherence to the Company's values. Bushveld Minerals is committed to supporting affected employees through this challenging transition.
Despite these difficult decisions, Bushveld Minerals is confident that these measures are essential for navigating the current market conditions and ensuring the Company's continued competitiveness throughout the commodity cycle.
Operational update
Bushveld remains on track to meet its 2023 Group production forecast of 3,700 - 3,900 mtV, however, due to repeated refractory failures at Vanchem in December, the decision was taken to bring forward 12 days of the 2024 kiln reline programme, which will impact Vanchem's production for the month of December 2023.
Craig Coltman, CEO of Bushveld Minerals Limited, commented:
"Over the past months, Bushveld Minerals has initiated several cost-saving initiatives, including a strategic ore sourcing programme and a moratorium on recruitment across the business. The challenges posed by global market conditions and the need for sustained operational stability have compelled us to take further strategic measures, including a reduction in our Group Head Office staff. Our priority remains the safety and wellbeing of our employees, and we are committed to supporting them through this process. As we navigate these challenges, we are confident that these measures will fortify Bushveld Minerals for long-term resilience and continued success in the dynamic commodity landscape."
Investor Meet Company details
Bushveld Minerals' Chief Executive Officer, Craig Coltman, will provide a live presentation, today, Wednesday 13th December 2023 at 12:00pm GMT. The presentation is open to all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and add to meet Bushveld Minerals Limited via:
https://www.investormeetcompany.com/bushveld-minerals-limited/register-investor
Investors who already follow Bushveld Minerals on the Investor Meet Company platform will automatically be invited.
Enquiries : info@Bushveldminerals.com
Bushveld Minerals Limited | +27 (0) 11 268 6555 | |
Craig Coltman, Chief Executive Officer | ||
Chika Edeh, Head of Investor Relations | ||
SP Angel Corporate Finance LLP | Nominated Adviser, Joint Broker | +44 (0) 20 3470 0470 |
Richard Morrison / Charlie Bouverat | ||
Grant Barker / Richard Parlons | ||
Hannam & Partners | 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 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a vertically integrated primary vanadium producer, it is one of only three operating primary vanadium producers. In 2022, the Company produced 3,842 mtV, representing more than 3% of the global vanadium market. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors.
Detailed information on the Company and progress to date can be accessed on the website www.Bushveldminerals.com