BMN Bushveld Minerals Limited

Market Abuse Regulation ("MAR") Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. 

06 August 2024

Bushveld Minerals Limited

("Bushveld" or the "Company")

Annual General Meeting Statement

Bushveld Minerals Limited (AIM:BMN), the integrated primary vanadium producer, is pleased to provide a general update to shareholders ahead of the Company's annual general meeting highlighting progress over the last year.

As set out in Bushveld's Q2 and H1 2024 Operational Update, the Company continues to rationalise assets by cutting costs and reducing head count as well as making progress on the turnaround initiatives at Vametco. The programme has already seen improved production volumes and stability despite supplier challenges.  Stabilised power supply from the local municipality is another initiative that has enabled steady production.  As a result of these measures, the outlook remains positive for the remainder of 2024 into 2025.

Furthermore, Bushveld has entered into a new agreement with OMF Fund III (F) Limited ("Orion"), pursuant to which Orion agreed to provide further funding up to a maximum of US$10 million, which will provide Bushveld with significant additional liquidity in the near term, coupled with the funds received from the disposal of Vanchem. The Company is also moving forward with the process to dispose of investments in the sectors unrelated to the production of vanadium, including the BELCO electrolyte asset as well as Lemur, which, subject to execution of binding documentation, is expected to provide an additional boost to the Group's liquidity through shedding c.US$4 million of debt held at these assets. Access to additional working capital and liquidity provided by the financing from Orion and the sale of non-core assets will enable Bushveld to pay down its creditors and improve the state of the corporate balance sheet, which will in turn help the Company maximise the value extracted at Vametco.

Bushveld has endured a challenging period due to various factors in and out of the Company's control, as vanadium pricing remained weak, while the creditor overhang placed capital constraints on the Company and had a negative impact on costs. However, Bushveld believes it has set up the right foundations for enduring long-term success. Following the conditional sale of Vanchem, Bushveld will have executed a strategic switch in direction that has resulted in a more streamlined and effective business model with a singular focus on being a pure upstream mining company. Bushveld also remains focused on asserting effective cost control.  The restructuring of the Company's head office and significant changes in Management are proving effective in reducing costs. Finally, there are encouraging signs of a market rebound on the horizon, such as the shift through new regulations in China relating to increased vanadium content in steel rebar used for construction.

In order to accelerate Bushveld's transition towards building a sustainable, cash-generating and low-cost production platform, the Board is performing a proactive in-depth review of all of its options and business plan.  All commodities are cyclical in nature with variable cycle duration of peaks and troughs. The long-term average price of vanadium is in the $40/kg range. At this level Bushveld would be highly cash generative and able to provide investors with an attractive total return which, at current price levels, remains challenging despite the planned cost cutting measures.

Other Matters

As mentioned in the Chairman's remarks in the annual report, we bid farewell to David Noko as a board member and thank him for his wise counsel during his tenure. As also announced, Mathews Senosi will be joining the board once the formalities have been concluded as David's replacement. Our Chairman, Michael Kirkwood, has also indicated that he will step down once a suitable candidate has been identified.  This process is underway. 

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

Bushveld is increasingly well positioned to benefit from rising Vanadium prices as we continue our trajectory by, strengthening core operations. We will look to engage with all our shareholders and work together to realise value within the shortest timeframe.  We look forward to providing further updates on this process in due course."

ENDS

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a primary vanadium producer. It is one of the world's three primary vanadium producers, offering compelling exposure to vanadium through its upstream asset.

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com