Bushveld Minerals : Results for the six months ending 30 June 2021
09/28/2021 | 05:52am EDT
Interim results for the six months ended 30 June 2021
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The technical information contained within this presentation has been reviewed and approved by Professor Richard Viljoen. Professor Richard Viljoen has more than 30 years' experience in the mining industry, including 15 years as chief consulting geologist for Gold Fields of South Africa. Notable past experience includes the development of significant mines including Northam Platinum and the Leeudoorn and Tarkwa gold mines, identifying and developing a significant platinum deposit in the Bushveld Complex for Akanani Resources as well as acting as consultant for exploration and mining companies in Canada, Mexico, Venezuela, India and China in the fields of base metals, gold and platinum. Professor Richard Viljoen has extensive experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Professor Richard Viljoen consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.
Presentation of data unless specified otherwise: variance analysis relates to the relative performance of Bushveld Minerals and/or its operations during the for the half year to 30 June 2021 and is by reference to the results published by the Company for that period.
2021 marks a rebasing for the Company's operations with a focus on operational stability - a necessary platform for production growth
Production adversely impacted
in January and February as a result of plant instability,
a planned 35-day maintenance shutdown,
a slow post shutdown ramp up, and
unprotected industrial action
Monthly production targets rebased in line with historical performance to create the necessary space to implement the required operational changes
Increased investment in maintenance and sustaining capital to achieve stability and support volume growth. Volume growth will be the biggest contributing factor to a sustainable cost reduction
Reduced production levels contributed to increased unit costs due to an unchanged fixed cost base
Implementation of the funded Kiln-3 refurbishment at Vanchem (underway) to grow its production to 2,600 mtV per annum from current ~1,100 mtV
Increase in production will contribute the most to driving overall reduction in unit costs in coming year
Investing to build a stable platform in order to achieve our growth targets
H1 2021 Group performance, 2021 guidance, 2022 growth outlook
Revenue of US$47.0 million ↑9%
Sales of 1,608 mtV, ↓9%
Realised sales price of US$29.24/kgV ↑21%
Production of1,574 mtV ↓5%
Lower production due to unplanned stoppages, planned 35-day maintenance shutdown and unprotected industrial action
Q2 2021 production↑29% on Q1 2021 and ↑13% on Q2 2020
Improved operational performance at Vametco was not sufficient to offset the challenging start in Q1
▪ EBITDA loss of US$10.8 million (H1 2020:
▪ Cash and cash equivalents of US$31.6
million (December 2020: US$50.5 million)
− Impact of US$7.3 million due to a
▪ Net debt of US$54.4 million (December
2020: US$33.7 million)
stronger ZAR:USD rate
− Sustaining capital of US$6.1 million (H1
− Increased production costs (including
2020 of US$0.1 million) to enhance
maintenance, stripping and
organisational restructuring) to ensure
stable base for sustainable growth
On track to meet Group production guidance of between3,400 mtV and 3,600 mtV and cash cost (C1) guidance at the operations
Building on the improved operational performance which has continued into July- August. Vametco and Vanchem Unit cash costs (C1) for the full year expected to be in line with guidance
The PFA capital ring-fence uplifted and ~US$18 million reallocated to Vanchem, which is expected to achieve a production run rate of ~2,600 mtVp.a by the end of 2022
On the back of the stability of operations at Vanchem and rapid opportunity to scale up
Group production to increase a steady-state run rate of between 5,000 - 5,400 mtVp.a. by the end of 2022
Production growth is key to margin expansion, unit cost reduction and increased profitability
Monetised Invinity holding ~US$13 million (initial investment of US$5 million)
25.25% interest into Cellcube
Commenced construction of 200 MWh electrolyte plant
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Bushveld Minerals Limited published this content on 28 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2021 09:51:06 UTC.