By Christian Moess Laursen
Bushveld Minerals on Wednesday lowered its full-year production guidance and raised its cost guidance due to challenges at its Vametco mine and a weak performance at its Vanchem facility.
The South Africa-focused vanadium miner said it now expects to produce between 3,700 and 3,900 metric tons of vanadium in 2023, previously seen between 4,200 and 4,500 tons.
Its full-year guidance for weighted average production cash cost has been revised to between $26.6 and $26.9 per kilogram of vanadium, which was previously between $26.1 and $27.0 per kilo.
“After careful review, we have come to the conclusion that, largely due to challenges at Vametco associated with the levels of the barren dam and the sulphate recovery plant, as well as Vanchem’s weak first-half performance and delays in the use of the better quality ore, the 2023 production outlook needs to be revised,” Chief Executive Craig Coltman said.
Bushveld’s second-quarter vanadium production rose to 840 tons from 668 tons a year earlier, and to 1,784 tons from 1,641 tons in the first half. Quarterly sales rose to 1,068 tons from 787 tons, while weighted average production cash cost improved to $27.4 per kilogram of vanadium from $31.2 a year prior.
Write to Christian Moess Laursen at christian.moess@wsj.com
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