Bushveld Minerals

Financials:

Primary ticker: AIM:BMN
Stage of development: Production
Primary minerals: Vanadium
Project to promote: Bushveld Vanadium : Bushveld Vametco and Bushveld Vanchem
Project location: South Africa
Website: www.bushveldminerals.com
Corporate video: Click here

Bushveld Minerals is a low-cost, vertically integrated primary vanadium producer. It is one of only three operating primary vanadium producers, owning 2 of the world’s 4 operating primary vanadium processing facilities. In 2022, the Company produced 3,842 mtV, representing more than 3% of the global vanadium market. Bushveld Vanadium is targeting to grow its vanadium production and achieve an annualised steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a in the near term from existing capacity. Growth plans to expand to 8,000 mtVp.a. will be pursued, subject to funding and market conditions. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors, the Company participates in the entire vanadium value chain through its two main pillars: Bushveld Vanadium, which mines and processes vanadium ore; and Bushveld Energy, an energy storage solutions provider.


Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through the advancement of vanadium-based energy storage systems, specifically Vanadium Redox Flow Batteries (“VRFBs”)

 

Cash: USD$7.0M
Debt: USD$81M

 

Major shareholders:
Hargreaves Lansdown Asset Mgt – 21.08%
Interactive Investor – 19.66%
Halifax Share Dealing – 11.00%
A J Bell Securities – 5.86%
Orange Trust – 5.66%
Management ownership – 1.29%

Management Profile

Fortune Mojapelo – CEO
Fortune Mojapelo, CEO is a Co-founder and Chief Executive of Bushveld Minerals, a role he has held from the inception of the Company. Co-founder and Director of Bushveld Energy. A founding shareholder of VM Investment Company, a principal investment and advisory company focusing on mining projects in Africa. Played a leading role in the origination, establishment and project development of several junior mining companies in Africa. Began his career at McKinsey & Company as a consultant on corporate strategy and organisational development in several sectors in South Africa and Nigeria.

 

Tanya Chikanza – Finance Director
Tanya Chikanza, Finance Director has extensive experience in managing publicly-listed companies’ relationships with financial markets. Has a global and market- facing perspective, with 30 years in international equity and debt capital markets, strategy, corporate finance and audit. Previously spent nine years at dual-listed Lonmin Plc where, as Executive Vice President of Corporate Strategy, Investor Relations and Corporate Communication, she helped to steer Lonmin’s return to profitability in 2018 and led the recent all-share transaction with Sibanye-Stillwater. Executive Director at Smith’s Corporate Advisory in London.

What is your rationale for taking part in 121 Mining Investment?

Meeting with Investors to provide an update on the developments of the Company

What recent news would you like to highlight to investors attending?

  • Solved for the financing overhang from the Orion CLN
  • Secured a third-party low-silica feed for Vanchem to support more stable production rates at no additional cost.
  • Completed construction and cold commissioning of the BELCO electrolyte plant.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

  • Complete and execute on the refinancing of the Orion CLN
  • Continue stable production base which provides the platform to support the volume increase in 2023.

 

6 Months:

  • BELCO electrolyte plant expected to come online in 2023
  • Vametco hybrid mini-grid expected to be completed in 2023


12 Months

  • Achieve Group production guidance of 4,200 mtV to 4,500 mtV.
  • Meet 2023 weighted average Group cash cost guidance of between US$26.1/kgV and US$27.0/ kgV.
  • Increase profitability and cash flow generation.
  • Carve out Bushveld Energy to facilitate access to capital markets, achieve a transparent valuation and attract specialist investors while retaining the vertical integration business model.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

  • High gearing levels – reduce gearing levels to support sustainable growth and enhance shareholder value
  • All in sustaining cost of more than US$30/kgV – increased volumes at Vanchem and cost savings initiative expected to reduce costs.

What do you think makes your company such a compelling investment?

Our value proposition includes:

A green, future-focused commodity, with attractive fundamentals

Demand for vanadium from the steel sector, is expected to increase at a Compound Annual Growth Rate (CAGR) of 3.1% through to 2030.

Vanadium demand from VRFBs is expected to grow by a CAGR of 41% by 2031.

Our Mission is to become a leading vanadium company;

  • Bushveld Minerals is 1 of only 3 operating primary vanadium producers. We own 2 of the world’s 4 operating primary vanadium processing facilities and possess a diversified vanadium product portfolio to serve our customers around the world.
  • Our significant interest in a downstream vanadium-based energy storage platform enables us to participate in a rapidly-growing industry.


We have invested substantial long-term capital;

  • We have increased production over time and are well positioned to deliver further growth. We are targeting a sustainable production run rate of 5,000 to 5,400 mtV over the near-term, with a continued focus on continuously improving efficiencies and driving cost saving initiatives.


Solid asset base and potential to grow production;

  • Our 546 Mt (100 percent basis) JORC-compliant resource is one of the world’s largest primary vanadium deposits and it offers significant growth potential with grades of 1.6-2.0% V2O5 in-magnetite.