Aim-listed Bushveld Minerals met its 2023 production guidance and was able to achieve a level of operational performance in the first half of the financial year, despite facing cash flow challenges, CEO Craig Coltman says in an operational update for the three and 12 months ending December 31. 

Production for the fourth quarter of 2023 decreased to 925 t of vanadium, compared with 1 000 t in the previous quarter.

The weighted average production cash cost was $27.30/kg of vanadium, compared with $26.50/kg in the previous quarter.

Sales for the period were, however, higher at 1 106 t, compared with the 849 t sold in the previous quarter.

Production for the 12 months to December 31 reached 3 714 t of vanadium – in line with guidance – and compared with 3 842 t produced in 2022.

The weighted average production cash cost was $26.60/kg of vanadium, compared with $27.70/kg in the previous year.

Bushveld sold 4 051 t of vanadium in the 2023 full-year, compared with the 3 584 t sold in the previous year, owing to increased sales out of inventory.

Group guidance for this year has been suspended pending receipt of funds from Southern Point Resources (SPR).

Owing to the continuing default of SPR as part of an equity raise, Bushveld has had to suspend critical suppliers’ payments and postpone some maintenance projects.

Production for January of 267 t of vanadium was affected by the company’s constrained cash position.

Further, on February 1, Bushveld announced that it had completed the refinancing of the unsecured convertible loan note issued to OMF Fund for a total debt obligation of $47.1-million (including accrued interest).

“We are pleased to have announced the completion of the Orion convertible debt restructuring . . . and had hoped to have put our financial difficulties behind us, and so it is therefore disappointing that we have to suspend 2024 production guidance given the funding shortfall reported in recent announcements.

“Once the additional funding is received, we hope to stabilise production at both assets and achieve a more consistent performance,” Coltman avers.