Date: Jan 31, 2019
LONDON (Alliance News) – Bushveld Minerals Ltd’s revenue and earnings soared in 2018, the company said Wednesday, despite missing production guidance.
Shares were down 5.0% on Wednesday at a price of 38.70 pence each.
Revenue for the vanadium producer, which owns the Vametco, Brits, and Mokopane projects in South Africa, surged to USD192.2 million, more than double the USD79.2 million recorded in 2017.
Bushveld’s earnings before interest, tax, depreciation, and amortisation more than quadrupled to USD107.5 million from USD23.9 million.
The steep increases were due to higher vanadium prices. The average price of ferrovanadium in 2018 was USD81.2 per kilogramme, well over double year-on-year. Vanadium is used to strengthen steel.
However, Bushveld’s 2018 production was 2,560 metric tonnes, down slightly from 2,649 metric tonnes in 2017. This was also short of guidance, which stood in the range of 2,600 metric tonnes to 2,650 metric tonnes.
Bushveld blamed the shortfall on unplanned maintenance and repairs in the fourth quarter.
In the fourth quarter, revenue rose 33% on the third quarter to USD60.2 million, and Ebitda 66% on the quarter to USD39.6 million.
