Bushveld Minerals returned to profitability in the first half of 2022 helped by higher vanadium prices and a steady rise in production.
Revenues jumped to US$76mln from US$47mln as the average ferrovanadium price rose by 35% and production edged up 4%.
The weakness of the South African rand against the US dollar also provided a tailwind on costs, said the miner.
Operating profits in the half year to June 2022 rebounded to US$6.1mln from a loss of US$19.7mln a year ago, while a cash inflow of US$7.1mln represented a US$27mln positive swing. Pre-tax losses were cut to US$1.2mln from US$22.3mln.
Fortune Mojapelo, chief executive, said the positive momentum should continue in the second half of the year though production guidance has been lowered due to kiln commissioning at its Vanchem arm
Group 2022 production is now forecast to be between 3,900 mtV and 4,100 mtV, though Mojapelo still expects the group to hit an annual run rate of 5,000 – 5,400mtV by the year-end.
Construction of the electrolyte manufacturing facility (BELCO) is also now 80% complete, he added, with production expected in the first half of 2023.
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