BUSHVELD Minerals CEO Craig Coltman offered a small glimmer of hope for the stricken miner saying there had been a small “uptick in the vanadium price”.
The company is currently living on a day-to-day basis after saying in its third quarter production update that it didn’t have sufficient working capital to address its immediate liabilities.
Coltman said Bushveld was “actively engaging” with various stakeholders to address its liquidity position, adding: “Since October 1 we have seen a noticeable uptick in the vanadium price. It’s certainly the first time I have witnessed this since I arrived at Bushveld [July 2023]. Long may this trend continue”.
For the third quarter ferrovanadium prices averaged $28,4 per kilogram down slightly from $28.6/kgV in the second quarter, according to the UK metals consultancy, CRU Group. Price declines were also recorded by London Metal Bulletin and Asian Metals which also monitor prices in the steel-feed material.
Commenting in its update, Bushveld said third quarter vanadium production totalled 855 tons compared to 1,000 tons in the third quarter of the 2023 financial year. After nine months 2024 production was at 2,546 tons compared to 2,784 tons at the same stage last year.
Output for the remainder of the year was being “controlled down”, including reductions in staffing, so as to contain costs, Coltman said. “Right now we are focussing on managing costs carefully and prioritising what can control in terms of spend,” he said.
Ultimately, a buyer for the assets or recapitalisation from an investor would save the company, but Coltman said he was unable to discuss details of discussions. “We are assessing all options with shareholders, lenders, and advisors, but I am unable to provide further details at this point in time in terms of stock exchange regulations,” he said.
In an effort to ease the pressure on the company, Bushveld agreed to sell its Vanchem facilities to Southern Point Resources (SPR), a privately held company. SPR had earlier expressed an interest in a larger recapitalisaton of the business before settling on Vanchem. It is a 15% shareholder in Bushveld as a whole, however.
Coltman confirmed a $3.5m capital payment had been received from SPR for Vanchem with a further $15m to $20m due in quarterly payments of $1.25m over three years.
Bushveld also sold its shares in Lemur Holdings for $100, the main benefit of which is no longer being liable for the outstanding $2.5m in debt owed to the Development Bank of South Africa.
