REG - Bushveld Minerals Ld - Turnaround Initiatives Underway

Bushveld MineralsAnnouncement

10/09/2024 07:00

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RNS Number : 5069D  Bushveld Minerals Limited  10 September 2024

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Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement

Bushveld Minerals Limited

("Bushveld Minerals", "Bushveld", "Company", or the "Group")

Turnaround Initiatives Underway

Bushveld Minerals Limited (AIM: BMN), the primary vanadium
producer, announces that it has begun work on cost cutting initiatives and
development works to return the Company to profitability and secure Bushveld's
long-term future.

This decision is driven partly by global market conditions, but also by the
recent decision to focus on our core operating asset, Vametco, while disposing
of other assets, including our downstream energy assets, the Mokopane
development project, and Vanchem.

On 2 September 2024, The Company announced that it had received the US$10
million in matched funding from OMF Fund III (F) Limited ("Orion") under a
previously announced agreement, providing the working capital to reduce long
outstanding creditor balances, and allowing management to focus on reducing
costs and sustainably increasing current production rates at the Company's
core asset - the Vametco mine and production facility in South Africa.

 

Turnaround initiatives

The Company is pursuing a multi-pronged approach to reducing costs and
maintaining Vametco's production, including the following:

 

·    Reducing  the current labour complement at both Vametco and Head
Office to ensure a fit for purpose structure enabling the long term
 sustainability of Bushveld Minerals. In this regard, and in line with the
Section 189 process under the Labour Relations Act, 1995, notices will be
issued to impacted employees at Vametco and Head Office.

·     Reducing costs by transferring purchases of certain goods and
services to longer term contracts, thereby fixing costs and providing
opportunity to negotiate lower prices with preferred OEM suppliers.

·  Reducing raw material consumption by ensuring assets are running
efficiently according to OEM specifications.

·     Several initiatives for yield improvements from kiln to finished
goods, improving production on a fixed cost base.

·    Increasing the capacity of the Barren Dam at Vametco remains an
important debottlenecking project that will commence in Q1 2025.

 

In total the Company expects these initiatives have the potential to achieve
savings of US$8m-$10m on an annualised basis by the end of 2025 materially
reducing the cost base at Vametco and ensuring its competitiveness as one of
only four primary vanadium facilities globally.

The Group will continue to prioritise sales into higher value markets, such as
nitro vanadium in North America.

 

Craig Coltman CEO of Bushveld Minerals commented:

"These initiatives are vital to ensure a sustainable long-term business for
the benefit of all stakeholders, from those that work at and live near the
mine, and to those that have provided the vital funds required for Vametco to
stay in business within this prolonged, weak pricing environment."

 

 Enquiries:  info@Bushveldminerals.com (mailto:info@Bushveldminerals.com)

 

 Bushveld Minerals Limited                                                                     +27 (0) 11 268 6555
 Craig Coltman, Chief Executive Officer

 SP Angel Corporate Finance LLP                          Nominated Adviser & Joint Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Abigail Wayne

 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 more than 3,800 mtV, representing approximately three per cent 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 (http://www.bushveldminerals.com/)

 

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