Page 1

RNS Number : 9828M Bushveld Minerals Limited 27 September 2021 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 . 27 September 2021 Market Abuse Regulation ( " MAR " ) Disclosure Bushveld Minerals Limited ( " Bushveld Minerals " " Bushveld " or the " Company " ) Unaudited Interim Results for the Six Months ended 30 June 2021 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 announce its half year unaudited results for the six months ended 30 June 2021 . Highlights Revenue of US $ 47.0 million a 9 per cent increase relative to H1 2020 ( H1 2020 : US $ 43.1 million ) , supported by an improved average realised price of US $ 29.24 / kgV ( H1 2020 : US $ 24.20 / kgV ) , partly offset by lower sales volumes in H1 2021 of 1,608 mtv¹ ( H1 2020 : 1,765 mtV ) . Group production in H1 2021 of 1,574 mtV , a 5.2 per cent decrease relative to H1 2020H1 2020 : 1,649 mtV ) as a result of unplanned stoppages , a 35 - day planned maintenance shutdown during Q1 2021 and the unprotected industrial action at Vametco in April 2021 . Improved operational performance at Vametco post the maintenance programme and other operational enhancements initiated by the new management , increased Q2 2021 Group production by 28.8 per cent relative to Q1 2021 , which combined with the higher production at Vanchem , resulted in Q2 2021 Group production being 13.4 per cent higher than Q2 2020. The operational stability has laid a platform for sustainable growth , lower unit cost expected in H2 2021 will normalise costs for the rest of the year in line with production cash cost ( C1 ) guidance at both plants . EBITDA loss of US $ 10.8 million ( H1 2020 : US $ 1.0 million ) primarily due to a stronger ZAR : USD exchange rate on costs in H1 2021 resulting in a negative impact amounting to US $ 7.3 million . The improved operational performance at Vametco in Q2 2021 was not sufficient to offset the challenging start in Q1 2021 . Sustaining capital expenditure of US $ 6.1 million ( H1 2020 of US $ 0.1 million ) , supporting the recent operational stability . Cash and cash equivalents as at 30 June 2021 of US $ 31.6 million ( December 2020 : US $ 50.5 million ) . Approximately US $ 12.7 million was realised from the sale of the investment in Invinity Energy Systems Plc ( " Invinity " ) and the profit on the sale is not included in EBITDA . The profit realised on the original investment of US $ 5 million was approximately US $ 7.7 million . Net debt as at 30 June 2021 of US $ 54.4 million ( December 2020 : US $ 33.7 million ) , including production financing agreement ( " PFA " ) of US $ 29.3 million . H1 2021 Total Injury Frequency Rate ( " TIFR " ) of 5.17 , an improvement of 78 per cent relative to H1 2020 ( H1 2020 : 23.75 ) On track to meet 2021 Group production guidance of between 3,400 mtV and 3,600 mtV and ramping up at Vanchem using the reallocated PFA capital ringfencing , to increase Group production to a steady - state run rate of between 5,000 to 5,400 mtV by the end of 2022. Production growth reduces unit cost and increases profitability . 1 : Reported as final sales to customers . Fortune Mojapelo , CEO of Bushveld Minerals Limited , commented : " The operational stability and improved production performance achieved in the last two months of the period under review was carried through into the first two months of the second half , which bodes well for reducing unit costs in the remainder of the year . We are confident of maintaining this rhythm , putting us on course to meet our production and cost guidance for the full year . 2021 marks a rebasing for the Company which creates the environment for us to implement the changes required at the operations , which can sustain production and provide the platform for growth . This means investing in maintenance and sustaining capital to achieve stability and support volume increase . As production growth on the back of our operational stability is key to margin expansion and profitability , we are pleased with the uplift of the PFA capital ringfence and the reallocation of the funding to the Vanchem refurbishment and expansion , given Vanchem's operational stability and opportunity to rapidly scale - up production . As a result of using this existing PFA funding for the Vanchem capital expenditure of about US $ 18 million in the current year and in H1 2022 , we remain on target for Group production to increase to a steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a. by the end of 2022. The increase in production will be the biggest contributing factor to a sustainable cost reduction , with Vanchem's unit costs expected to be in line with Vametco , when it more than doubles its current production to 2,600 mtv . The Upper Seam Project at Vametco came online in September 2021 and will supply Vanchem with a significant proportion of its ore requirement for the next 18 months . Finally , it is with deep sadness we learned of the passing of ProfessorMorris Viljoen in August 2021 , a Technical Advisor to Bushveld Minerals and importantly , one of co - founders of VM Investment Company ( " VMIC " ) . VMIC laid the foundation for the establishment of Bushveld Minerals . " Table 1 : Group financial and operational highlights In US $ million unless otherwise specified . FINANCIAL HIGHLIGHTS Revenue EBITDA loss Depreciation SIX MONTHS ENDED June 30 2021 47.0 ( 10.8 ) ( 8.9 ) June 30 2020 43.1 ( 1.0 ) ( 8.9 ) Page 1 of 16 % change 9 % 980 %