Half Year 2024 Bushveld Minerals Ltd Earnings Call Transcript
Key Points
- Bushveld Minerals Ltd (BSHVF) has made significant strides in operational stability, particularly at Vametco, with production reaching 217 mtV in May, the highest monthly output in a year.
- The company is implementing several cost-cutting measures and operational initiatives, targeting annualized savings of $8 million to $10 million by the end of 2025.
- Bushveld Minerals Ltd (BSHVF) has secured $10 million in match funding from Orion and a $12 million working capital facility from SPR, providing a cash balance of $4.1 million as of August 31.
- The company is focused on asset rationalization, including the sale of non-core assets like Vanchem, Lemur, and BELCO, which is expected to improve liquidity.
- Bushveld Minerals Ltd (BSHVF) is changing the structure of its purchase agreements to longer-term contracts, aiming for significant cost reductions and operational efficiencies.
- The company reported an adjusted EBITDA loss of $14.3 million and an operating loss of $18.6 million for the first half of 2024, primarily due to lower vanadium prices and production volumes.
- Cash costs for H1 2024 were significantly higher at $32.80 per kilogram, driven by lower production volumes and higher raw material costs.
- The company has a high level of debt, with a total net debt of $124 million as of June 30, 2024, which includes various loans and working capital facilities.
- Bushveld Minerals Ltd (BSHVF) is currently producing vanadium at a loss, and the company cannot guarantee a viable business going forward if vanadium prices remain depressed.
- Production volumes at Vametco have been lower than previously achieved, partly due to a lengthy pre-planned shutdown and issues with non-preferred OEM suppliers.
Good afternoon, and welcome to the Bushveld Minerals Limited interim results investor presentation. (Operator Instructions) The company may not be in a position to answer every question received in the meeting itself.
However, the company can review all the questions submitted today and publish responses, where it's appropriate to do so. Before we begin, I'd like to put the following poll.
I'd now like to hand you over to Craig Coltman, CEO. Good afternoon to you, sir.
Good afternoon, and hello and welcome to the Bushveld Minerals H1 2024 interim results call. Thank you for dialing in. I'm joined by Robbie Taylor, our CFO, to run through the numbers for the first half of 2024, which we announced earlier this week.
To note, before we get into the details, given the sale of Vanchem, the asset is now classed as a discontinued operation and held for sale and is therefore presented separately. The sale of Vanchem is expected to be concluded with approval from the
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