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RNS Number : 7418P Bushveld Minerals Limited 21 October 2021 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 . 21 October 2021 Bushveld Minerals Limited ( " Bushveld Minerals " " Bushveld " or the " Company " ) Q3 and 9 months 2021 Operational Update Bushveld Minerals Limited ( AIM : BMN ) , the AIM quoted , integrated primary vanadium producer and energy storage solutions provider with ownership of high - grade assets in South Africa , is pleased to provide an operational update for the three months and nine months ending 30 September 2021 ( " Q3 2021 and 9M 2021 " ) . Key Highlights Bushveld Vanadium Q3 2021 Total Injury Frequency Rate ( " TIFR " ) of 8.74 , an improvement of 46 per cent on Q3 2020 ( Q3 2020 : 16.10 ) . Group production in Q3 2021 of 1,056 mtV , an increase of 19 per cent on Q2 2021 ( Q2 2021 : 886 mtV ) , underpinned by continued operational stability at Vametco . Focus has been on stabilising operations to achieve a sustainable production run rate supported by the imple proactive maintenance programme , other operational improvements and a new operating model at both plants . entation of a Vametco's production cash cost ( C1 ) of US $ 22.4 / kgV improved by 13 per cent on Q2 2021 , as a result ofhe higher throughput in Q3 2021 and a weaker ZAR : USD exchange rate . Vanchem production cash cost ( C1 ) of US $ 27.3 / kgV improved by three per cent on Q2 2021 , in line with the weaker ZAR : USD exchange rate . Group production for 9M 2021 of 2,629 mtV , was two per cent lower than 9M 2020 Group production of 2,680 mtV , as a result of lower production volumes at Vametco during the H1 2021 . On track to meet 2021 Group production guidance of between 3,400 mtV and 3,600 mtv . Unit costs for this 9M 2021 have started to normalise in line with the lower unit costs in Q3 2021 on the back of the higher throughput , and we expect this trend to continue in Q4 2021. We are therefore maintaining our unit cash cost guidance for 2021 at both plants . Group sales in Q3 2021 of 826 mtV¹ in line with Q2 2021 of 820 mtV . Despite higher production volumes , sales to final customers were impacted by challenges in international logistics channels arising from COVID - 19 , the unrest in South Africa in July 2021 as well as disruptions at local ports in July and August 2021. We expect sales to recover as warehouse stocks in target markets are replenished . 1 : Reported as final sales to customers . Finance update Positive progress has been made in negotiations withDuferco Participations Holding S.A ( " Duferco " ) on the remaining balance US $ 11.5 million of the convertible loan note , that would result inUS $ 5 million being payable in November 2021 and the remaining US $ 6.5 million being converted into Bushveld shares , as announced on 27 September 2021 We will update the market in due course on the final outcome . Cash and cash equivalents as at30 September 2021 of US $ 25 million ( 30 June 2021 : US $ 31.6 million ) was impacted by the lower sales and the consequential higher working capital , as well as the on - going capital expenditure during the quarter to support growth and operational stability . Vanadium market After a strong start to the quarter , Ferrovanadium prices ( " FeV " ) fell and currently trade at an average of approximately US $ 31 / kgV across markets . At the moment , the US market is maintaining a premium to European prices with Chinese prices marginally lower . Demand in the US , Europe and Rest of the world remains buoyant . Q3 2021 London Metal Bulletin FeV price averagedUS $ 38.2 / kgV , 6 per cent higher than Q2 2021 US $ 36.0 / kgV ) and 58 per cent higher than Q3 2020 ( US $ 24.2 / kgV ) . The 2021 year to date average FeV price is approximately US $ 35 / kgV across all markets as at8 October 2021 . Fortune Mojapelo , CEO of Bushveld Minerals Limited , commented : " I am pleased to report a solid quarter of production where we achieved our targets of stability and cost control at both our operations , on the back of the operational improvements we are implementing . At the same time , we were able to improve safety statistics , a very important achievement and one we will continue to focus on . " We entered Q4 2021 on a strong footing as a result and therefore still on track to achieve our production guidance . We continue to invest in sustaining and growth capital to maintain stability and provide the platform for growth , to support the volume increase in 2022. " Conference call Bushveld Minerals Chief Executive Officer , Fortune Mojapelo , Finance Director , Tanya Chikanza and Francois Naude , Director of Operations ; will host a conference call at 11:00 am UK time ( 12:00 noon SAST ) today to discuss the quarterly update with analysts . Participants may join the call by dialling : Page 1 of 4