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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement

17 September 2024

Bushveld Minerals Limited

("Bushveld Minerals" "Bushveld" or the "Company")

Unaudited Interim results for the six-months ended 30 June 2024

Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, announces its interim results for the six months ended 30 June 2024.  

Following the previously announced sale of the Vanchem vanadium processing plant ("Vanchem") to Southern Point Resources Fund I S.A. LP ("SPR"), Vanchem has been classified as 'a discontinued operation' and 'held for sale'. Vanchem's operational results for the current and comparative periods are presented as discontinued operations in the Group's consolidated interim statement of profit or loss and its assets and liabilities are presented separately under current assets and current liabilities, respectively, in the Group's consolidated interim statement of financial position at 30 June 2024.

 

H1 2024 Financial Highlights from continuing operations

·    Revenue (primarily Vametco) of US$25.6 million (H1 2023: US$55.1 million)

·    Group Sales of 949 mtV (H1 2023: 1,428 mtV)

·    Average realised price of US$26.9/kgV (H1 2023: US$38.6/kgV)  

·    Cost per unit sold including sustaining capital of US$42.9/kgV (H1 2023: US$30.8/kgV)

·    Adjusted EBITDA¹ loss of US$14.3 million (H1 2023: US$12.6 million profit) 

·    Operating loss of US$18.6 million (H1 2023: US$7.9 million profit)

·    Net loss of US$45.0 million (H1 2023: net loss US$12.5 million)

·    Free cash outflow² of US$18.1 million (H1 2023: outflow of US$2.7 million) 

·    Cash and cash equivalents of US$1.0 million (31 December 2023: US$1.3 million)

·    Net debt³ of US$124.0 million (31 December 2023: US$105.7 million)

 

¹ Adjusted EBITDA is EBITDA, excluding the Group's share of losses from investments in associate and joint venture, fair value gain on derivative liability and other losses.

² Free cash flow defined as operating cash flow less sustaining capital.

³ Net debt is total debt plus lease liabilities less cash and cash equivalents. 

 

 

Group Priorities and Post-Period Update

·    Optimising operations and right-sizing the organisation to ensure that Vametco is a cash-generating asset, expecting to achieve an annualised savings of US$8-10 million by 2025 year-end, including the following initiatives:

o  Reducing the current labour complement at Vametco and Head Office.

o  Reducing costs by transferring purchases of certain goods and services to longer term contracts.

o  Reducing raw material consumption by ensuring assets are running efficiently.

o  Implementing several operational initiatives for yield improvements from kiln to finished goods.

·    Complete outstanding conditions of the Vanchem sale, expecting to receive Competition Commission approval at the end of October 2024 and complete final documentation.

·    Focused on receiving the outstanding balance of funds due in 2024 from SPR.

·    Attaining sustainable production at Vametco of 240 mtV per month by Q4 2024.

·    Complete the sale of certain non-core assets - Lemur Holdings Limited ("Lemur") and Bushveld Electrolyte Company ("BELCO").

·    Cash balance of US$4.1 million as at 31 August 2024.

·    OMF Fund III (F) Limited's ("Orion") US$10 million matched funding received post-period end.

·    As announced on 14 August 2024, the Company secured the total amount of US$12 million of the SPR interim working capital facility announced on 07 May 2024.

·    In discussions with Joint Venture ("JV") partner for the transfer of liabilities from  BELCO and removal of a guarantee provided by Bushveld amounting to ZAR28.75 million (c.US$1.5 million).

·    Received approval from the Development Bank of South Africa ("DBSA") to dispose of Lemur, which will result in Bushveld no longer being liable for a c.US$2.5 million debt. The disposal remains subject to certain outstanding conditions being met.

 

Investor session  

Bushveld Minerals Chief Executive Officer, Craig Coltman and Chief Financial Officer, Robbie Taylor, will host an investor session on Thursday 19^th September 2024 at 14:00pm BST (15:00pm SAST) via the Investor Meet Company platform to discuss the operational update.

The session is open to all existing and potential shareholders. Investors can submit questions via Investor Meet Company dashboard up until 9:00am the day before the meeting. Pre-submitted questions will be prioritised.

Investors can sign up to Investor Meet Company for free and register for the event via:

https://www.investormeetcompany.com/bushveld-minerals-limited/register-investor      

Investors who already follow Bushveld Minerals on the Investor Meet Company platform will automatically be invited.

 

Craig Coltman, CEO of Bushveld Minerals commented:

 

"The Company experienced a challenging start to the financial year given severe funding constraints leading to the inability to run our assets efficiently. This is clearly reflected in these financial results. However, Bushveld has remained steadfast in its commitment to rationalise assets, and implement a range of cost-cutting measures in what is now our core asset, Vametco.

 

The sale of Vanchem is expected to be concluded, with approval from the Competition Authorities expected by end October 2024.

 

As outlined in our Q2 and H1 operational update, May was a standout month at Vametco, reaching its highest monthly output since the beginning of my tenure of 217 mtV, demonstrating the early success of some of our turnaround efforts.

 

Additionally, we saw the successful receipt of the final instalment of US$2 million from SPR, completing the total US$12 million interim working capital facility initially secured in May 2024. In a further boost to our position, we received the full US$10 million of the matched funding facility from Orion. These milestones have enabled us to maintain momentum in our turnaround journey, but the Company remains focused on managing our working capital situation and is dependent on a significant amount of funds from SPR for the balance of funds due in 2024."

 

Enquiries :  [email protected]

Bushveld Minerals Limited		+27 (0) 11 268 6555
Craig Coltman, Chief Executive Officer
SP Angel Corporate Finance LLP	Nominated Adviser & Joint Broker	+44 (0) 20 3470 0470
Richard Morrison / Charlie Bouverat
Grant Barker / Abigail Wayne
Hannam & Partners	Joint Broker	+44 (0) 20 7907 8500
Andrew Chubb / Matt Hasson / Jay Ashfield
Tavistock	Financial PR	+44 (0) 207 920 3150
Gareth Tredway / Tara Vivian-Neal / James Whitaker

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.

 

 

Chief Executive Officer's Review

 

Dear stakeholders,

 

The financial results for the first six months of 2024 reflect a challenging first half of the year for the Company.

 

We entered the period on the front foot, having completed a fund raising at the end of 2023 that was intended to help us reduce creditors and secure availability of goods and services, along with pricing based on longer term contracts.

 

For reasons previously explained, this funding was not immediately forthcoming and the Company was forced to continue to run on a hand-to-mouth basis for several months. The pre-announced sale of Vanchem, and US$10 million in matched funding have since strengthened our position, and we remain focused on managing our working capital situation, but we remain dependent upon SPR for the balance of funds due in 2024.

 

In addition, Orion agreed to amend the terms of the agreements entered into for the convertible loan note refinancing announced on 1 February 2024, importantly extending the first repayment date on the term loan to 31 December 2025 (previously 30 June 2024).

 

The major factor out of our control in this regard, remains the Vanadium price, which continues to trade at levels which place pressure on the ability of our operations to generate meaningful positive cash flow.

 

As a result of these, and other factors, the Company recorded an adjusted and underlying EBITDA loss from continuing operations of US$14.3 million, and an operating loss of US$18.6 million. Both adjusted EBITDA loss and operating loss were higher than the prior year due to lower realised prices and lower sales volumes, partially offset by lower costs of sales. While revenue of US$25.6 million from continuing operations was 54% lower than the prior year due to a 30% decrease in the average realise price to US$26.9/kgV and a 34% decrease in sales to 949 mtV.

 

The cost of sales, excluding depreciation, from continuing operations for the first half of 2024 was US$28.3 million, which was US$1.4 million lower than the prior period primarily due to lower variable production costs.

 

Production cash costs for continuing operations for the quarter and half year were $32.8/kgV, driven by higher raw material costs, lower production volumes due to earlier constraints, and maintenance expenses. As production continues to stabilise and increase due to our turnaround strategy, we anticipate a reduction in Vametco's costs in the second half of the year. We are targeting weighted average production cash costs for the Group of between $26.7/kg and $27.1/kg, with total Group production projected between 3,800 mtV and 4,000 mtV. Assuming Vanchem's production is excluded for the last two months of the year (with Competition Commission approval expected to be received at the end of October 2024), total year Group production guidance will reduce by 400 mtV.

 

OPERATIONAL OVERVIEW

 

Bushveld Minerals has continued its efforts to streamline operations and drive efficiencies, and the Company remains committed to its strategy of asset rationalisation, which includes cost-cutting measures and a reduction in headcount, while simultaneously making significant strides in the turnaround initiative at Vametco. The programme has already delivered improved production volumes and enhanced operational stability, despite supplier challenges. A stabilised power supply, secured through our agreement with the local municipality, has further enabled steady production, and as a result of these measures, our outlook remains strong for the remainder of 2024 into 2025.

 

In Q2, Bushveld reported production at Vametco of 548 mtV, and 905 mtV for the half year. Notably, May was a standout month at Vametco, with production reaching 217 mtV - the highest monthly output since my tenure began a year ago. This performance underscores the success of our ongoing turnaround efforts at Vametco, which has now become our core asset.

 

Despite financial constraints earlier in the year and a planned 25-day maintenance shutdown in January and February, we have laid a strong foundation for further improvements. With additional initiatives set to be implemented at Vametco in the second half of the year, we are on track to achieve our goal of 240 mtV of sustainable monthly production by Q4 2024.

 

Furthermore, during this period, Bushveld has continued to progress its asset rationalisation strategy. While no definitive agreement has been reached, we are in discussions with our JV partner, the Industrial Development Corporation, regarding the transfer of ownership of BELCO, which would include all liabilities and a guarantee of approximately US$1.5 million from Bushveld. We have also received approval from DBSA to proceed with the disposal of Lemur, which will result in Bushveld no longer being accountable for the outstanding US$2.5 million debt on the asset, contingent on certain conditions being met.

 

Following shareholder approval in June, we are now advancing the sale of Vanchem, with approval from the Competition Commission expected by the end of October 2024.

 

Health and Safety

 

I'm pleased to report that in H1 2024, TRIFR reduced by over 60% to 1.30 from 3.39 in H1 2023, reflecting the successful implementation of the Safety Diagnostic Audit and a strategic focus on leading indicators, which have collectively contributed to a notable reduction in safety incidents.

 

2024 priorities and outlook

 

Bushveld also renegotiated agreements with Orion during the period, which include additional funding commitments matching those paid by SPR.

As mentioned, post-period end, Bushveld Minerals has made significant strides in strengthening its financial position and supporting the execution of our turnaround strategy at Vametco.

We announced the successful receipt of the final instalment of US$2 million from SPR, completing the total US$12 million interim working capital facility that was initially secured in May 2024. In addition, Orion agreed to match SPR's additional funds on a dollar-for-dollar basis, up to a maximum of US$10 million, and received approval by SARB and secured the full US$10 million from Orion, as announced 02 September 2024.

The combined funding of US$22 million from SPR and Orion will significantly enhance our working capital position, allowing us to reduce our long outstanding creditor balances, support our ongoing turnaround initiatives at Vametco, and cover transaction costs. We have also commenced work on critical cost-cutting and development initiatives aimed at returning the Company to profitability and securing its long-term future.

Looking ahead, I am focused on executing the Company's asset rationalisation and turnaround strategies at Vametco, positioning the company as a simple, fast and effective business.

 

FINANCIAL OVERVIEW

 

	Unit	H1 2024	% change	H1 2023
Revenue	US$m	25,6	-54%	55,1
Cost of sales	US$m	(32,4)	-6%	(34,3)
Other operating income and costs	US$m	(5,5)	-7%	(5,9)
Administrative costs	US$m	(6,3)	-10%	(7,0)
Adjusted EBITDA	US$m	(34,3)	-432%	10,3
- continuing operations	US$m	(14,3)	-214%	12,6
- discontinued operation	US$m	(19,9)	763%	(2,3)
Underlying EBITDA	US$m	(21,9)	-313%	10,3
- continuing operations	US$m	(14,3)	-214%	12,6
- discontinued operation	US$m	(7,6)	229%	(2,3)
Average foreign exchange rate	US$/ZAR	18,73	3%	18,21
Group production	mtV	1 693	-5%	1 784
- continuing operations	mtV	905	-22%	1 167
- discontinued operation	mtV	788	28%	617
Group sales	mtV	1 639	-22%	2 096
- continuing operations	mtV	949	-34%	1 428
- discontinued operation	mtV	690	3%	668
All-in sustaining costs ("AISC")	US$/kgV	47,1	41%	33,4
- continuing operations	US$/kgV	42,9	40%	30,8
- discontinued operation	US$/kgV	52,8	36%	38,9
Average realised price	US$/kgV	25,1	-33%	37,4
- continuing operations	US$/kgV	26,9	-30%	38,6
- discontinued operation	US$/kgV	22,5	-36%	34,9

 

The sale of Vanchem was considered to be highly probable as at 30 June 2024. Vanchem was therefore accounted for as held for sale and its operating results for the current and comparative period were reported as discontinued operations.

 

The financial results for the first six months reflect a challenging start to the year for the Company. The Company recorded an adjusted EBITDA loss of US$14.3 million from continuing operations and an adjusted EBITDA loss of US$19.9 million from discontinued operations and an operating loss of US$18.6 million. Both adjusted EBITDA loss and operating loss were lower than the prior year due to lower realised prices and lower sales volumes, partially offset by lower costs of sales.

 

Income statement

The income statement summary below is adjusted from the primary statement presentation.

 

In US$'000	H1 2024	% change	H1 2023
Revenue	25 550	-54%	55 103
Cost of sales excluding depreciation	(28 324)	-5%	(29 743)
Other operating income and costs	(5 488)	-7%	(5 893)
Administration costs excluding depreciation	(6 067)	-11%	(6 849)
Underlying EBITDA	(14 329)	-214%	12 618
Impairment losses	-	0%	-
Adjusted EBITDA	(14 329)	-214%	12 618
Depreciation	(4 296)	-10%	(4 757)
Operating profit / (loss)	(18 625)	-337%	7 861
Fair value gain on derivative liability	107	100%	-
Share of loss from associate and joint venture	-	-100%	(1 504)
Other gains / (losses)	36	-101%	(3 375)
Net financing expenses	(5 847)	-11%	(6 539)
Loss before tax	(24 329)	584%	(3 557)
Income tax	3 567	-232%	(2 712)
Loss from continuing operations	(20 762)	231%	(6 269)
Loss from discontinuing operations	(24 237)	289%	(6 224)
Net loss for the period	(44 999)	260%	(12 493)

 

 

Revenue from continuing operations

 

	H1 2024	H1 2023
Group sales (mtV)	949	1 428
Average realised price (US$/kgV)	26.9	38.6
Revenue (US$'000)	25 550	55 103

 

Revenue of US$25.6 million from continuing operations was 54% lower than the prior year due to a 30% decrease in the average realise price to US$26.9/kgV and a 34% decrease in sales to 949 mtV.

 

The geographic split of Group sales during the first half of 2024 was 48% to the USA (H1 2023: 49%), 33% to Europe (H1 2023: 29%), 9% to Asia (H1 2023: 6%), 5% to South Africa (H1 2023: 6%), and 5% to the rest of the world (H1 2023: 10%).

 

During the period, Bushveld continued to prioritise nitro vanadium sales into North America given the higher vanadium prices in the region. Sales into the aerospace and specialty chemical products sectors were also a focus given the price premiums these sectors attract.

 

Cost analysis

 

In US$'000	H1 2024	H1 2023
Continuing operations
Cost of sales excluding depreciation	(28 324)	(29 743)
Other operating income and costs	(5 488)	(5 893)
Administration costs excluding depreciation	(6 067)	(6 849)
Total income statement cost excluding depreciation	(39 879)	(42 485)
Total units sold (mtV)	949	1 428
Cost per income statement per unit sold (excluding depreciation) (US$/KgV)	42.0	29.8
Sustaining capital	(862)	(1 461)
Total cost including sustaining capital	(40 741)	(43 946)
Cost per unit sold including sustaining capital  from continuing operations (US$/KgV)	42.9	30.8
Cost per unit sold including sustaining capital from discontinued operation (US$/KgV)	52.8	38.9
Cost per unit sold including sustaining capital (US$/KgV)	47.1	33.4

 

Cost per unit sold from continuing operations

The cost per unit sold from continuing operations for the half year (including sustaining capital expenditure) was US$42.9/kgV. This represents a 40% increase relative to the prior year primarily as a result of lower sales volumes, partially offset by the cost factors noted below.

 

Cost of sales

The cost of sales, excluding depreciation, from continuing operations for the first half of 2024 was US$28.3 million, which was US$1.4 million lower than the prior period primarily due to lower variable production costs incurred.

 

Other operating income and costs

Other operating income and costs from continuing operations of US$5.5 million decreased by US$0.4 million primarily due to:

·    A US$1.9 million reduction in selling and distribution costs to US$2.7 million primarily driven by lower commissions due to the lower average realised sales prices and lower distribution costs due to the lower sales volumes.

·    This reduction was partially offset by a US$1.5 million decreased in other operating income primarily due to reduction in foreign exchange gains due to the strengthening of the Rand compared to the US$.

 

Administration costs

Administration costs, excluding depreciation charges, from continuing operations for the half year, was US$6.1 million. Below is a breakdown of the key items included in administration costs:

 

In US$'000	H1 2024	H1 2023
Staff costs	2 482	3 235
Professional fees	544	1 846
Other (incl. IT and security expenses)	3 041	1 768
	6 067	6 849

 

Adjusted and underlying EBITDA

Adjusted EBITDA is a factor of volumes, prices and cost of production. This is a measure of the underlying profitability of the Group, which is widely used in the mining sector. Underlying EBITDA removes the effect of impairment charges.

 

In US$'000	H1 2024	H1 2023
Continuing operations
Revenue	25 550	55 103
Cost of sales	(32 367)	(34 324)
Other operating income and costs	(5 488)	(5 893)
Administration costs	(6 320)	(7 025)
Add: Depreciation and amortization	4 296	4 757
Adjusted EBITDA from continuing operations	(14 329)	12 618
Adjusted EBITDA from discontinued operation	(19 921)	(2 308)
Adjusted EBITDA	(34 250)	10 310
Add: Impairment losses from continuing operations	-	-
Add: Impairment losses from discontinued operation	12 317	-
Underlying EBITDA from continuing operations	(14 329)	12 618
Underlying EBITDA from discontinued operations	(7 604)	(2 308)
Underlying EBITDA	(21 933)	10 310

The Group delivered an adjusted and underlying EBITDA loss of US$14.3 million from continuing operations, a decrease of US$26.9 million compared to the previous year, primarily driven by lower realised sales prices and lower sales volumes, partially offset by lower costs of sales.

 

Other gains/(losses)

Other gains/(losses) of US$36k consists of a gain recognised on the remeasurement of the Orion production financing arrangement of US$1.2 million partially offset by a write-down of US$1.2 million on the investment in VRFB/CellCube.

 

Net financing expenses

Net financing expenses were US$5.8 million, US$0.7 million lower than in the prior year.

 

In US$'000	H1 2024	H1 2023
Finance income	(82)	(235)
Interest on borrowings	4 813	6 050
Unwinding of discount	371	382
Interest on lease liabilities	383	322
Other finance costs	362	20
Net finance expenses	5 847	6 539

 

Interest on borrowings primarily reflected the interest on the Orion convertible loan note of US$1.1 million (H1 2023: US$3.7 million), interest on the Orion production financing arrangement of US$2.2 million (H1 2023: US$2.2 million), and interest on the Orion senior term loan of US$1.4 million (H1 2023: $nil).

 

Loss from discontinued operations

Vanchem was accounted for as a discontinued operation and its operating results for the current and comparative period were reported as net loss from discontinued operations. The net loss from discontinued operations were US$24.2 million, an increase of US$18.0 million compared to the prior year. The increase in the net loss from discontinued operations was primarily due to the impairment loss recognised in order to align the net asset value of Vanchem with the expected discounted sales proceeds of US$32.0 million, decrease in revenue due to a lower average realised price partially offset by lower cost of sales due to costs saving initiatives.

 

Balance sheet

Assets

The sale of Vanchem was considered highly probable and therefore the assets and liabilities of Vanchem were classified as assets and liabilities held for sale and presented separately under current assets and current liabilities, respectively in the Group's consolidated interim statement of financial position at 30 June 2024.

 

Property, plant and equipment decreased by US$51.6 million compared to the previous year primarily due to the impairment loss recognised for Vanchem and the reclassification of Vanchem as assets held for sale.

 

Inventories of US$25.8 million decreased by US$16.4 million compared to the prior year, primarily due to a reclassification of Vanchem as assets held for sale of $11.2 million and the reduction in work-in-progress stocks and weighted average production costs.

 

Trade and other receivables of US$15.6 million decreased by US$9.4 million compared to the prior year primarily due to the reclassification of Vanchem as assets held for sale of $6.1 million. The remaining decrease is primarily due to the collection of US$1.4 million of the subscription receivables and collection of other trade receivables.

 

The decrease in cash and cash equivalents to US$1.0 million was primarily due to cash used from operations (US$16.3 million), capital expenditures incurred (US$1.9 million), repayment of finance costs (US$1.9 million), partially offset by net proceeds received from the interim working capital facility (US$18.9 million) and net proceeds received from the equity raise (US$1.4 million).

 

Liabilities

Total borrowings (excluding leases) of US$116.4 million increased by US$17.9 million compared to the previous year primarily due to the additional funds received from the SPR interim working capital facility of US$18.9 million and the capitalisation of finance costs to borrowings of US$5.9 million, partially offset by the 10% conversion of the Orion convertible loan notes by issuing 124,747,016 new ordinary shares and the repayment of finance costs of US$1.9 million.

 

The net debt reconciliation below outlines the Group's total debt and cash position:

 

In US$'000	30 June 2024	31 Dec 2023	Change
Orion production financing arrangement	(35 768)	(35 635)	(133)
Orion convertible loan notes	(14 787)	(46 766)	31 979
Orion senior term loan	(29 658)	-	(29 658)
Industrial Development Corporation loans	(6 747)	(6 238)	(509)
SPR interim working capital facility	(27 807)	(7 812)	(19 995)
Other	(1 664)	(2 124)	460
Lease liabilities	(8 570)	(8 428)	(142)
Total debt	(125 001)	(107 003)	(17 998)
Cash and cash equivalents	1 028	1 281	(253)
Net debt	(123 973)	(105 722)	(18 251)

 

Cash flow statement

The table below summarises the main components of cash flow during the year:

 

In US$'000	H1 2024	H1 2023
Operating profit/(loss)	(18 625)	7 861
Depreciation	4 296	4 757
Other non-cash items	(1 007)	(12 755)
Changes in working capital and provisions	4 337	(4 571)
Taxes paid	(799)	(1 902)
Cash outflow from continuing operations	(11 798)	(6 610)
Cash inflow/(outflow) from discontinued operation	(4 472)	5 690
Cash outflow from operations	(16 270)	(920)
Sustaining capital expenditures	(1 850)	(1 793)
Free cash flow	(18 120)	(2 713)
Cash generated from/(used in) other investing activities	21	(2 521)
Cash generated from/(used in) financing activities	17 846	(1 313)
Cash outflow	(253)	(6 547)
Opening cash and cash equivalents	1 281	10 874
Less cash and cash equivalents classified as held for sale	(47)	-
Foreign exchange movement	47	(585)
Closing cash and cash equivalents	1 028	3 742

 

Operating activities

Cash used in operating activities was US$16.3 million, an increase of US$15.3 million from the previous year, primarily driven by the higher operating loss incurred partially offset by the inflow from changes in working capital and provisions.

 

Investing activities

Cash used in investing activities, including sustaining capital expenditure of US$1.9 million was primarily driven by capital expenditure on property, plant and equipment.

 

Capital Expenditure (US$' million)

In US$ millions	H1 24	H1 23
Vametco - Growth - Sustaining	- 0.9	- 1.5
Vanchem - Growth - Sustaining	- 0.9	- 0.3
Bushveld Energy - Growth - Sustaining	0.1 -	2.5 0.0
Total	1.9	4.3

 

Financing activities

Cash generated from financing activities of US$17.8 million comprised of the proceeds received from the SPR interim working capital facility of US$18.9 million and the equity proceeds received of US$1.4 million, partially offset by the repayment of finance costs of $1.9 million and repayment of lease liabilities of US$0.3 million.

 

Going concern and outlook

We closely monitor and manage liquidity risk by ensuring that the Group has sufficient funds for all ongoing operations. As part of the liquidity planning process, the Directors reviewed the approved Group production outlook and base case cashflow forecast through to 30 September 2025. The base case cashflow forecast has been amended in line with any material changes identified during the year. Equally, where funding requirements are identified from the base case cashflow forecast, appropriate measures are taken to ensure these requirements are tracked and can be met.

 

We have performed an assessment of whether the Group would be able to continue as a going concern for at least twelve months from balance sheet date. We took into account the financial position, outstanding cash flow commitments from SPR for the balance of 2024, expected future performance of the operations, the debt facilities and debt service requirements, the working capital requirements, capital expenditure commitments and forecasts, expected proceeds from the sale of Vanchem and Mokopane. The Directors have identified and are proactively monitoring options within their control which will improve the Group's liquidity. Additionally, we factored in the favourable relationship with Orion, demonstrated by the restructuring of agreements to accommodate market conditions and constructive engagement in relevant matters.

 

The Group's ability to continue as a going concern is dependent on its ability to complete the sale of Vanchem and Mokopane and the timing of those sales proceeds, monitoring options within their control, the continued support of Orion, and achieving the planned production levels at the estimated average sales prices of US$29.15/kgV for the remainder of 2024 (which is 8% greater than current prices) and estimated average sales prices of US$34.40/kgV (which is 27% greater than current prices) throughout 2025 which were based on industry analysts' market research.

 

These conditions indicate the existence of material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. The interim consolidated financial statements for the period ended 30 June 2024 have been prepared on a going concern basis as, in the opinion of the Directors, the Group will be in a position to continue to meet its operating and capital costs requirements and pay its debts as and when they fall due for at least twelve months from the date of this report.

 

 

 

Bushveld Minerals Limited

Consolidated Interim Financial Statements for the period ended 30 June 2024

 

 

Consolidated Statement of Profit or Loss
Figures in thousands of US$	Notes	6 months ended 30 June 2024 Unaudited	6 months ended 30 June 2023 Unaudited
Continuing operations
Revenue		25,550	55,103
Cost of sales		(32,367)	(34,324)
Gross (loss) profit		(6,817)	20,779
Other operating income		259	1,738
Selling and distribution costs		(2,730)	(4,590)
Other mine operating costs		(1,350)	(1,492)
Idle plant costs		(1,667)	(1,549)
Administrative expenses		(6,320)	(7,025)
Operating profit / (loss)		(18,625)	7,861
Finance income		82	235
Finance costs		(5,929)	(6,774)
Other gains / (losses)		36	(3,375)
Fair value gain on derivative liability		107	-
Share of loss from investments in associate and joint venture		-	(1,504)
Loss before taxation		(24,329)	(3,557)
Taxation		3,567	(2,712)
Loss from continuing operations		(20,762)	(6,269)
Loss from discontinued operations, net of taxation	4	(24,237)	(6,224)
Loss for the period		(44,999)	(12,493)
Loss attributable to:
Owners of the parent		(44,999)	(14,093)
Non-controlling interest		-	1,600
		(44,999)	(12,493)
Loss per ordinary share
Basic loss per share (cents)	3	(1.97)	(1.09)
Diluted loss per share (cents)	3	(1.97)	(1.09)

 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

 

 

 

Consolidated Statement of Comprehensive Loss
Figures in thousands of US$	Notes	6 months ended 30 June 2024 Unaudited	6 months ended 30 June 2023 Unaudited
Loss for the period		(44,999)	(12,493)
Other comprehensive income / (loss):
Items that may be reclassified to profit or loss:
Currency translation differences		183	(15,097)
Total comprehensive loss		(44,816)	(27,590)
Total comprehensive loss attributable to:
Owners of the parent		(44,816)	(24,716)
Non-controlling interest		-	(2,874)
		(44,816)	(27,590)

 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

 

Consolidated Statement of Financial Position

Figures in thousands of US$	Notes	30 June 2024 Unaudited	31 December 2023 Audited
Assets
Non-current assets Property, plant and equipment	5	48,193	99,744
Investment property		2,217	2,173
Investments in associate and joint venture		1,080	2,360
Deferred tax asset		4,209	464
Restricted investment		3,071	2,881
Total non-current assets		58,770	107,622
Current assets Inventories	6	25,853	42,273
Trade and other receivables	7	15,619	25,018
Other financial assets		24	24
Cash and cash equivalents	8	1,028	1,281
		42,524	68,596
Assets held for sale	4	57,678	3,700
Total current assets		100,202	72,296
Total assets		158,972	179,918
Equity and liabilities Share capital	9	28,527	26,944
Share premium	9	143,405	140,272
Accumulated loss	9	(163,005)	(118,006)
Share-based payment reserve		261	261
Foreign currency translation reserve		(46,983)	(47,166)
Fair value reserve		(1,783)	(1,783)
Equity attributable to owners of the parent		(39,578)	522
Non-controlling interest		288	288
Total equity		(39,290)	810
Liabilities
Non-current liabilities Post retirement medical liability		1,606	1,577
Environmental rehabilitation liabilities		7,232	16,633
Deferred consideration		-	306
Borrowings	10	111,268	38,008
Lease liabilities		7,787	7,746
Total non-current liabilities		127,893	64,270
Current liabilities Trade and other payables	11	36,953	46,295
Provisions		1,520	1,944
Borrowings	10	5,163	60,567
Lease liabilities		783	682
Deferred consideration		2,586	2,304
Current tax payable		2,135	3,046
		49,140	114,838
Liabilities relating to assets held for sale	4	21,229	-
Total Current Liabilities		70,369	114,838
Total liabilities		198,262	179,108
Total equity and liabilities		158,972	179,918

 

 

Consolidated Statement of Changes in Equity