Covid-19 Update and Operation Halt
Market Abuse Regulation (MAR) Disclosure
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.
24 March 2020
Bushveld Minerals Limited
("Bushveld", the "Company" or the "Group")
Covid-19 Update and Operation Halt
Bushveld Minerals Limited (AIM:BMN), the AIM-quoted, integrated primary vanadium producer which owns high-grade vanadium assets in South Africa, hereby provides an update on operations following the more stringent directives issued by South Africa's Government on 23 March 2020 to deal with the global Covid-19 outbreak.
The measures include a 21-day National lockdown for all residents, to minimise movement of non-essential businesses and activities. A requirement is to put mining operations on care and maintenance with effect from midnight 26 March through to 16 April 2020.
As a result of the Government's announcement we are making preparations to safely and efficiently put our Vametco operations and Vanchem facility on care and maintenance in such a manner as to be able to safely and timely ramp up our operations and safeguard the long term sustainability of our business at the end of the period.
Full Year 2020 guidance for both Vametco and Vanchem, announced to the market in the Full Year 2019 and Q4 2019 Operational Update on 30 January 2019, will be under review. We are assessing the financial impact and will update the market in due course.
To date our supply chains have continued to operate as normal with deliveries of product continued around the world, while the Company's ability to source consumables and equipment has not been affected to any material degree.
The welfare of our employees and communities is a top priority at Bushveld Minerals, and over the past few weeks we established a Task Team to assist develop a comprehensive cross-functional response to the pandemic. A number of awareness, prevention, risk mitigation and strategies have been developed and are being implemented.
We have been following and will continue to follow the advice from South Africa's Government, a nd we will continue to engage with the Government, to obtain further detail on permitted activities during this period.
With regards to the vanadium market outlook, the virus has had a negative effect on the global growth outlook. Having said that, China has shown signs of recovery since the government lifted the lockdown put in place to halt the spread of the virus.
Fortune Mojapelo, Chief Executive Officer of Bushveld Minerals Limited, commented:
"Having witnessed health systems of more developed first world countries get overwhelmed by the pandemic with tragic consequences, South Africa's decisive and bold intervention announced by the government this early in the epidemic's cycle is an existential necessity. It is costly. Yet the costs of inaction are unimaginable.
I am encouraged by the comprehensive set of measures, including fiscal ones, that will help cushion both employers and employees.
I am pleased that our Covid-19 Task Team has shown tremendous leadership in ensuring that the Company is best prepared to weather this storm through a comprehensive awareness, prevention, and intervention programme, which includes critical business continuity measures to ensure that once the lock down passes we are able to ramp up our production quickly. An important priority of the Company is to ensure that the company's cash reserves and available facilities available to it are sufficient to not only see the company through the lockdown period but ensure a speedy ramp up once the lock down period ends.
We continue to evaluate our response to maximise the safety of our workers; ensure minimal disruption to our operations and where such disruption is unavoidable, as in this case, to ensure the company is in a financially sound enough condition to weather the storm. This will pass and I am confident when it has passed Bushveld Minerals will still be standing and continuing on its strategic path."
ENDS
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Fortune Mojapelo, Chief Executive Officer |
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Chika Edeh, Head of Investor Relations |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Richard Morrison / Stephen Wong |
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Abigail Wayne / Richard Parlons |
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BMO Capital Markets Limited |
Joint Broker |
+44 (0) 20 7236 1010 |
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Tom Rider / Michael Rechsteiner / |
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Neil Elliot |
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Peel Hunt Limited |
Joint Broker |
+44 (0) 20 7418 8900 |
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Ross Allister |
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Tavistock |
Financial PR |
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Charles Vivian / Gareth Tredway / Edward Lee |
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+44 (0) 207 920 3150 |
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Brunswick |
Financial PR (South Africa) |
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Miyelani Shikwambana |
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+27 (0) 11 502 7300 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com .
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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