Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF) produced 3,842 mtV from its operations in South Africa in the 12 months to end-2022, slightly below the revised guidance range of between 3,900 mtV and 4,100 mtV.
Electricity load shedding at the Vanchem has had a negative impact.
Vametco’s production of 2,705 mtV exceeded the upper end of guidance.
The fourth quarter was an overall record, though, with both Vanchem and Vametco reporting quarter-on-quarter increases.
This year, Bushveld expects to produce between 4,200 mtV and 4,500 mtV, with volumes weighted towards the second half.
As it stands today, Bushveld is one of only three operating primary vanadium producers, and owns two of the world’s four operating primary vanadium processing facilities.
“I am pleased to report a year of production growth and completion of significant capital projects at Bushveld Minerals, despite external challenges related to electricity availability and supply chains,” said chief executive Fortune Mojapelo.
“We retain the target of achieving a production run rate of 5,000 to 5,400 mtV, however, in the near-term, the uncertain and challenging operating environment associated with load shedding has impacted our ability to optimise Vanchem. Consequently, we have factored this into our 2023 group production guidance, which is still 13% greater than 2022 production. These difficult operating conditions have an obvious effect on production volumes, but also on costs, where a 19% power cost increase will be applied nationwide from Q2 2023.”
www.ferroalloynet.com
