Bushveld Minerals Lowers Production Guidance for 2023

By Christian Moess Laursen

Bushveld Minerals, a South Africa-focused vanadium miner, has revised its full-year production guidance for 2023 and raised its cost guidance. Challenges at its Vametco mine and a weak performance at its Vanchem facility have led to these adjustments.

Revised Production Expectations

The company now expects to produce between 3,700 and 3,900 metric tons of vanadium in 2023, compared to the previous range of 4,200 to 4,500 tons.

Increased Cost Projections

Bushveld Minerals has also revised its guidance for weighted average production cash cost. It is now projected to be between $26.6 and $26.9 per kilogram of vanadium, up from the previous range of $26.1 to $27.0 per kilo.

Reason for Revisions

According to Chief Executive Craig Coltman, the revisions were made after a careful review. Challenges at Vametco related to the barren dam levels and the sulphate recovery plant, along with Vanchem's weak performance in the first half of the year and delays in the use of higher quality ore, were cited as the primary reasons for the adjustments.

Second-Quarter Performance

In the second quarter, Bushveld's vanadium production increased to 840 tons from 668 tons in the same period last year. For the first half of the year, production rose to 1,784 tons from 1,641 tons. Quarterly sales also saw growth, rising to 1,068 tons from 787 tons. Additionally, the weighted average production cash cost improved to $27.4 per kilogram of vanadium, compared to $31.2 in the previous year.