Bushveld hits full-year guidance, but cash flow issues remain

Chief executive Craig Coltman said in an operating update for the three and 12 months to 2023 that despite cash flow issues, target-listed Bushveld Minerals had met its 2023 production guidance and was able to deliver solid growth in the first half of the financial year. Achieve a certain level of operational performance. December 31st.

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Vanadium production fell to 925 tonnes in the fourth quarter of 2023, compared with 1,000 tonnes in the previous quarter.

Weighted average production costs for vanadium were $27.30/kg, compared with $26.50/kg in the previous quarter.

However, sales during the reporting period increased by 1,106 tonnes from the previous quarter to 849 tonnes.

Vanadium production reached 3,714 tonnes in the 12 months to December 31, in line with forecasts, compared with 3,842 tonnes in 2022.

The weighted average production cost of vanadium was US$26.60/kg, compared with US$27.70/kg last year.

Bushveld sold 4,051 tonnes of vanadium for the full year 2023, compared with 3,584 tonnes the previous year, reflecting higher stock sales.

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The group’s forecast for this year has been suspended pending receipt of funding from South Point Resources (SPR).

Bushveld has had to suspend payments to key suppliers and defer some maintenance projects as SPR continues to default on capital increases.

Vanadium production of 267 tonnes in January was affected by the company’s limited liquidity position.

In addition, on February 1, Bushveld announced that it had completed the refinancing of unsecured convertible notes issued to the OMF Fund with total debt of $47.1 million (including accrued interest).

“We are pleased to announce the completion of the Orion convertible bond restructuring. . . . We had hoped to emerge from our financial difficulties, but it is disappointing that we have had to suspend our 2024 production forecast given the funding shortfalls noted in recent announcements.

“Once we receive additional funding, we hope to stabilize production at both plants and achieve more consistent performance,” Coltman assured.

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