Share Name Share Symbol Market Type Share ISIN Share Description
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 22.50 0.00 0.00 22.50 22.50 22.50 0.00 12:23:03
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

Bushveld Minerals Limited Interim Results for the 6 Months to end-June 2019

30/09/2019 7:03am

UK Regulatory (RNS & others)

Historical Stock Chart

2 Months : From Sep 2019 to Nov 2019

Click Here for more BUSHVELD MINERALS Charts.


RNS Number : 0938O

Bushveld Minerals Limited

30 September 2019

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.

30 September 2019

Bushveld Minerals Limited

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

Unaudited Interim Results for the Six Months ended 30 June 2019

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, is pleased to announce its half year unaudited results for the six months ended 30 June 2019.

Key Highlights

H1 2019 Group financial highlights

   --    Revenue of US$78.0 million (H1 2018: US$83.7 million). 
   --    EBITDA(1) of US$41.0 million (H1 2018: US$42.8 million). 
   --    Profit after tax of US$30.8 million (H1 2018: US$28.5 million). 
   --    Free cash flow(2)  of US$23.3 million (H1 2018: (US$16.4 million). 
   --    Net cash balance of US$66.1 million at 30 June 2019 (31 December 2018: US$42.0 million). 
   --    Earnings per share of 1.92 cents (H1 2018: 1.57 cents). 
   --    Ferrovanadium price averaged US$56.3/kgV in H1 2019 (H1 2018: US$65.5/kgV). 

-- Year to date average ferrovanadium price of US$48.2/kgV(3) (.)

   1.     EBITDA comprises operating profit plus depreciation and amortisation. 
   2.     Free cash flow comprises net operating cash flows less net investing cash flows. 
   3.     London Metal Bulletin year to date average as at 20 September 2019. 

H1 2019 Group operating highlights

-- On 1 May 2019, the Company announced the conditional acquisition of Vanchem for a consideration of US$68 million. The transaction is expected to be completed on 31 October 2019.

H1 2019 Bushveld Vanadium operational highlights


-- Transformation programme successfully delivering, with Q2 2019 production being the highest quarter for production in over two years.

-- Production for H1 2019 was 1,392 mtV, a two per cent increase relative to H1 2018 (H1 2018: 1,360 mtV).

   --    On track to meet 2019 production guidance of 2,800 mtV to 2,900 mtV. 
   --    On track to meet 2019 unit cash cost guidance of US$18.90/kgV to US$19.50/kgV. 

H1 2019 Bushveld Energy operational highlights

Electrolyte Plant

-- The Environmental Impact Assessment ("EIA") for the proposed plant in East London, South Africa, has passed the public participation stage and is on track to be completed this year.

-- The first batch of electrolyte was successfully produced using Vametco's feedstock, with the samples being sent to vanadium battery companies for testing.

Vanadium electrolyte rental model

-- Implementation of the first rental contract was announced with Avalon Battery Corporation and its customer, Sandbar, in the United States.

   --    Negotiating larger rental agreements in Africa, Asia, Europe and North America. 
   --    Negotiations in progress with external commercial debt providers to support the structure. 

Eskom Vanadium Redox Flow Battery project

-- The vanadium redox flow battery ("VRFB") installed with Eskom was commissioned and now operating fully.

Vametco based Solar Mini-Grid Project

-- Commenced a number of activities including an Environmental Assessment, a grid connection and geotechnical studies. Procurement for the project commenced in Q3 2019.

Group events post 30 June 2019


-- Successfully completed the wages and benefits negotiations with the Association of Mineworkers and Construction Union ("AMCU") for the three year period from 1 July 2019 to 30 June 2022.

Vanchem acquisition

-- On 28 August 2019, unconditional approval for the acquisition was received from the Competition Commission of South Africa.

-- The transaction remains on track to be completed on 31 October 2019. The outstanding conditions precedent, namely, the cession of specific commercial agreements and South African Reserve Bank approval, are expected to be satisfied.

-- The Company is making good progress with local banks for debt facilities and remains confident of completing the transaction without relying on equity capital markets. Further updates will be provided as appropriate.

Group Outlook

-- Execution of the transformation programme at Vametco to increase production rates to 3,400 mtVp.a. during the course of 2020 and then to 4,200 mtVp.a. during 2022, remains on track.

-- Develop a production platform of more than 8,400 mtVp.a. with a nameplate capacity of 10,000 mtVp.a within the next five years.

-- On completion of the Vanchem acquisition, the Company will offer a diverse product offering for the steel, chemicals and energy storage markets.

-- Continue to reinforce Bushveld Energy's position as a leading energy storage solutions provider.

   --    Invest in the vanadium supply chain individually or through partnerships. 
   --    Progress workstreams for the Johannesburg Stock Exchange ("JSE") listing. 

Appointment of joint broker

   --    Appointment of Peel Hunt LLP as joint corporate broker to the Company with immediate effect. 

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"I am pleased to report that Bushveld Minerals has continued to build on firm foundations in the first half of 2019, enjoying progress across the Group and establishing new platforms for further future growth.

"The Group's EBITDA of US$41million and free cash flow generation of US$23 million achieved in the period highlights the mine's robust nature as a low-cost, highly cash generative operation, and was achieved in a period of weaker vanadium prices, which averaged 14 per cent less than a year earlier. Even with this strong result, we will be focusing our efforts at Vametco on further refining processes to maintain cost control.

"Operational performance has been improved through our transformation programme at Vametco, which we started to implement at the beginning of the year. Execution of the transformation programme is ongoing throughout the rest of this year and into 2020, during which we will reach a steady state of production of 3,400 mtV per annum.

"In August, we were pleased to receive approval from the Competition Commission of South Africa to acquire the Vanchem assets, without conditions, which was a key milestone in closing the transaction on 31 October 2019. We now look forward to completing the remaining conditions precedent and completing this important transaction for the Group.

"At Bushveld Energy, the first half of 2019 has seen a broader and improved understanding of its innovative business model. The combination of the electrolyte rental product and the current vanadium price is increasing confidence that VRFBs will become a long-term feature of energy grids both in Africa and globally. We expect these events to increase vanadium consumption from VRFBs during second half of 2019 and beyond."


                                                          +27 (0) 11 268 
Bushveld Minerals                                          6555 
Fortune Mojapelo, Chief Executive 
Chika Edeh, Head of Investor 
SP Angel Corporate Finance          Nominated Adviser     +44 (0) 20 3470 
 LLP                                 & Broker              0470 
Ewan Leggat / Richard Morrison 
Abigail Wayne / Richard Parlons 
                                                          +44 (0) 20 7236 
BMO Capital Markets Limited         Joint Broker           1010 
Jeffrey Couch / Tom Rider 
 Michael Rechsteiner / Neil 
                                                          +44 (0) 20 7418 
Peel Hunt LLP                       Joint Broker           8900 
Ross Allister / James Bavister 
David McKeown 
Tavistock                           Financial PR 
                                                          +44 (0) 207 920 
Charles Vivian / Gareth Tredway                            3150 
Brunswick                           Financial PR (South 
                                                          +27 (0) 11 502 
Miyelani Shikwambana                                       7300 


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; 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. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. 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.

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 are 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

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces Nitrovan(TM) , a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine (ROM) ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide ("MVO") in rotary calciners. MVO is fed into the mixplant and finally into the shaft furnaces to produce Nitrovan(TM) .

About Bushveld Energy Limited

Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.

Launched in 2016, Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa by 2020, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.

Chief Executive Report

Dear Shareholder,

I am pleased to report back on a successful first half of the 2019 financial year. The Company is on track with its strategic initiatives to deliver a truly integrated and leading low-cost vanadium platform characterised by large high-grade vanadium deposits and mines; scalable, low-cost, cash generating vanadium primary processing assets and a downstream energy storage business, positioned to play a leading role in the growing stationary energy storage market.


Bushveld has one of the largest high-grade primary vanadium resource base in the world. The Company's vanadium resource base currently consists of three mineral assets, Vametco, Brits and Mokopane. Bushveld's processing facilities consist of Vametco and Vanchem (conditional acquisition). The Company's mineral resources and processing facilities are situated within the Bushveld Complex in South Africa.

Vametco (74% ownership)

At the core of this strategy is Vametco, located in Brits, Northwest Province. Vametco is a low cost primary vanadium mining and processing company which produces a trademark vanadium product, Nitrovan(TM) , as well as Modified Vanadium Oxide.

On 22 May 2019, following a significant amount of exploration work, including a 2018 drilling campaign comprising 13 drill holes over a total of 1,506m, the Company announced a doubling of its Ore Resources and a significant increase in the total mineral resource. Vametco has a 186.7 Mt JORC compliant resource averaging 1.98 per cent V(2) O(5) in magnetite grades (including 48.4 Mt in reserves), and a life of mine of 27 years.

Table 1: Vametco operational and financial overview

                                 Unit   H1 2019   H1 2018   Variance 
 Vanadium produced              (mtV)     1,392     1,360       2.4% 
                     ----------------  --------  --------  --------- 
 Vanadium sold                  (mtV)     1,115     1,403     -20.5% 
                     ----------------  --------  --------  --------- 
 LMB Prices w.a.             US$/ kgV      56.3      65.5     -13.9% 
                     ----------------  --------  --------  --------- 
 Revenue               USD (millions)      74.3      81.2      -8.6% 
                     ----------------  --------  --------  --------- 
 EBITDA                USD (millions)      42.3      42.4         0% 
                     ----------------  --------  --------  --------- 
 Production cash 
  costs                      USD/ kgV      19.2      20.2        -5% 
                     ----------------  --------  --------  --------- 

While Vametco had a stellar financial performance in 2018 (Revenue of US$183 million and EBITDA of US$108 million), the Company recognised that continued success requires improvement on several fronts, not least, lowering Vametco's already low production costs even further, by increasing throughputs and thus production volumes, while also, ensuring a conducive working environment with a motivated workforce.

Following a diagnostic exercise in Q4 2018, the Company successfully implemented its operational improvement programme, which is starting to bear fruit. This transformation programme will complement the Company's capacity expansion project to increase vanadium production at Vametco to more than 4,200 mtVp.a. The diagnostic review undertaken in Q4 2018 identified a number of initiatives to improve operational performance focusing on stabilising and improving production, cost and capital efficiencies and improving overall organisational health.

During this half the Company made several changes to the management structure, which were designed to build greater depth in the leadership team, improve coordination with the greater Bushveld Group and create dedicated capacity to coordinate the development and implementation of the many initiatives forming part of the transformation programme. These changes included the appointment of Ms Bertina Symonds into the role of General Manager, created from combining the CEO and COO roles into one. Bertina brings over 20 years of mining and beneficiation experience, strong leadership and a solid production and commercial background. William Steinberg, former Vametco's Works Manager, was appointed Chief Transformation officer, to drive the Operations Transformation programme, while Mr Taff Williams, former Vametco's COO, was appointed Group Vanadium Specialist to provide technical support to the Group's global vanadium sales as well as supporting integration efforts for Vanchem.

As a result of the initiatives undertaken in the first half of 2019, the Company has already seen improvements in all key areas, being: a) production scheduling; b) vanadium grade in the kiln feed; c) the hourly feed rate to the kiln; and d) recoveries, all contributing to improved throughput at higher grades. This resulted in material improvements in production, where the 742 mtV Nitrovan(TM) produced in Q2 2019 was up 14 per cent on Q1 2019 and up 18 per cent on the comparable quarter last year. The Company is therefore pleased to report that Vametco remains on target to meet its production guidance for this year of 2,800 mtV to 2,900 mtV.

Vametco sold 1,115 mtV Nitrovan (TM) , generating revenues of US$74.3 million in the first half. Vametco's realised price is based on the prior month's average price, which is higher than the quoted LMB weighted average price for the period of US$56.3/kgV. These higher realised prices offset the lower sales in the period.

Vametco is in the lowest quartile on the cost curve for global vanadium producers and, therefore, enjoys robust economics and remains highly profitable even in weaker price environments. The Company is pleased to report that Vametco generated an EBITDA of US$42.3 million achieving an EBITDA margin of 57 per cent.

The Company had previously reported a first half unit cash cost of US$17.40/kgV and an EBITDA of US$48.6 million for Vametco. These figures have subsequently changed to US$19.20/kgV and US$42.3 million, as a result of intercompany costs introduced from January 2019 which should have been eliminated, however they were instead incorrectly capitalised to the cost of inventory. The impact of the adjustment increased the value of cost of sales as well as the reduction in the inventory value of work in progress and finished goods. Vametco's 2019 cash cost guidance remains unchanged at US$18.90/kgV to US$19.50/kgV.

Looking forward, the continued implementation of initiatives identified in the diagnostic review will support Vametco in achieving a steady state production of 3,400 mtVp.a. during 2020.

The Phase III expansion programme, to be undertaken after the above initiatives are completed, will focus on improving kiln availability and increasing kiln and leach recoveries targeting steady state production of 4,200 mtVp.a during 2022.

Health and safety

Health and safety remain a top priority for the Company. I am pleased to report that Vametco recorded 5.376 million Fatality Free Shifts by the end of June 2019.

Employee relations

Good relationships between management, the Company's employees and the local communities in which we operate are an essential part of any successful mining business. The Company is delighted to have successfully completed wages and benefits negotiations with AMCU, which represents approximately 70 per cent of Vametco's workforce. The resulting three year agreement is an important step in bolstering the Company's corporate social responsibility and maintaining operational excellence. Pleasingly, the costs of the agreement do not necessitate a revision to Vametco's 2019 production cost guidance.

Furthermore, the Company has embarked upon and progressed a number of initiatives, including negotiating an Employee Share Ownership Scheme ("ESOP") which is aimed at closely aligning the interests of Vametco's workforce with its operational targets, as well as an Employees' Financial Wellness Programme. Pending the implementation of the ESOP, expected in 2020, Vametco will pay during 2019 a special ESOP bonus calculated on the same basis as the ESOP payment made for the period 1 July 2018 to 31 December 2018.


Bushveld Minerals takes its environmental obligations and responsibilities seriously. Several environmental initiatives underway include construction of a new tailings dam to prevent groundwater contamination, rehabilitation of current tailings dams to eliminate fall-out dust. Furthermore, during the first half of the year, Vametco embarked on the installation of an off-gas scrubber to reduce dust emissions. The Company's environmental objectives are to align the Company's Environmental Management Systems with international standards, including those of the International Finance Corporation and ISO 14001:2015 (an international standard for environmental management systems). The Company is targeting ISO 14001 certification by Q3 2020.

Brits (62.5% ownership)

The Brits Project is located in Portion 3 of the farm Uitvalgrond 431 JQ, near the town of Brits in the North West Province of South Africa and is directly along strike from the Bushveld Vametco Alloys Mine (Bushveld-Vametco). The Company announced a maiden JORC Mineral Resource on 21 June 2019 which incorporated data from the 2018 drilling campaign comprising 26 drill holes over a total of 2,967m of diamond drilling.

Brits has an Indicated and Inferred Resource of 66.8 Mt (100 per cent Gross Basis) at an average grade of 1.58 per cent V(2) O(5) in magnetite for 175,400 tonnes of contained vanadium across the three seams. Pleasingly, the Indicated Mineral Resource tonnages account for 67 per cent of the total combined Mineral Resource and stand at 44.9Mt with an average grade of 1.59 per cent V(2) O(5) in magnetite for 115,600 tonnes of contained vanadium across the three seams. Brits provides the optionality for additional ore feed for the Vametco plant, and, if required, feed for the Vanchem plant.

Vanchem (conditional acquisition)

Meanwhile, Bushveld's strategy of growing its production platform through targeted brownfield processing assets is also bearing fruit. On 01 May 2019, the Company announced the conditional acquisition of Vanchem, a primary vanadium processing plant that includes three kilns, two ferrovanadium converters. Post completion of a US$45 million refurbishment programme, Vanchem has the potential to produce more than 4,200 mtVp.a. in the form of vanadium pentoxide, vanadium trioxide, vanadium chemicals and ferrovanadium. This acquisition, in addition to Vametco, sets the platform for Bushveld to increase its overall vanadium production to more than 8,400 mtVp.a. with a name plate capacity in excess of 10,000 mtVp.a.

The Company is delighted to have received unconditional approval of the transaction by the Competition Commission of South Africa and now look forward to completing the transaction on 31 October 2019, following the fulfilment of remaining conditions precedent.

As communicated to the market, the Company expects to fund the acquisition from its strong cash position as well as debt facilities that it is in negotiations for.

Mokopane (64% ownership)

Mokopane is one of the world's largest primary vanadium resources, with a 298 Mt JORC compliant resource and a weighted average V(2) O(5) grade of 1.41 per cent in-situ and 1.75 per cent in magnetite.

Mokopane is positioned to become a primary source of feedstock for Vanchem, creating a fully integrated vanadium producing business in a shorter time frame and at a lower cost, as opposed to a standalone operation. The Company engaged MSA to undertake a definitive feasibility study in September 2019 for the development of the Mokopane mine. The expedited Mokopane development, as a possible primary feedstock supply to Vanchem, does not remove the optionality of supplying ore to other primary or secondary producers worldwide, and/or to develop Mokopane into an integrated mine and processing plant.

BUSHVELD ENERGY (86% ownership)

This sound, scalable and low cost production base gives Bushveld a solid platform to implement its vertically integrated business model, through the development of a downstream vanadium-based energy storage business, Bushveld Energy. Bushveld Energy was created to establish a significant position for VRFBs in the stationary energy storage industry thereby achieving the twin objectives of a) diversifying and strengthening the vanadium demand profile and b) capturing a compelling commercial opportunity in a multi-billion dollar industry.

During the first half of 2019, Bushveld Energy made significant progress across all its key areas of focus - development of electrolyte production capacity, deployment of its electrolyte rental model, which is expected to play an important role in promoting deployment of VRFBs, development of energy storage mandates and developing a sound partnership model for VRFB assembly/manufacturing.

The Company is encouraged to see greater coverage and a broader and improved understanding by the market of stationary energy storage and the Bushveld Energy business model. Moreover, the combination of the Company's electrolyte rental model and Bushveld's ability to scale up vanadium production will support VRFBs becoming a long-term feature of energy grids globally.


Strategic acquisitions are a key part of the Company's growth plans, as demonstrated by the successful acquisition of Vametco and soon to be completed acquisition of Vanchem.

Following the acquisition of Vanchem, Bushveld's growth strategy will focus on realising the potential of its assets, focusing on production throughput, cost control and realising the downstream opportunities under development through Bushveld Energy. These opportunities will see the Company continue investing across the vanadium supply chain individually or through partnerships.

As previously communicated, the Company's investment proposition remains primarily capital growth on the back of the Company delivering on its ambitious growth targets. The Company is nevertheless confident that when fully implemented, its vertically integrated platform will generate sufficient cash to return some to its shareholders through dividends.


The Company believes that the vanadium market fundamentals remain attractive. Demand in steel making is expected to continue growing, notwithstanding a subdued steel market outlook in the medium term. This demand increase is driven by growing intensity of use of vanadium in steel, which is in turn driven largely by new regulations introduced in China. Meanwhile the momentum behind energy storage applications of vanadium continues to grow as the energy transition towards cleaner energy sources takes root.

Vanadium prices have seen a 50 per cent fall during the first half of 2019. The Company believes that the price fall has been heavily influenced by largely temporary factors and retains its positive outlook on the vanadium market going forward. These factors include:

China's rebar standard

The new rebar standards introduced in China in November 2018 were expected, when fully complemented, to see an uplift in Chinese vanadium demand of approximately 30 per cent. This uplift has, however, not been realised, mostly due to a lacklustre enforcement regime for the standards which effectively provided a "tolerance window" for the mills in relation to the new standard. A nation-wide inspection launched in July and expected to be completed in September is anticipated to drive greater compliance with the new standards and in turn support demand growth going forward.


Increased niobium imports into China suggest greater substitution of vanadium in rebar when vanadium prices were over US$100/kgV. The majority of the substitution is price elastic. At current vanadium prices the incentive to substitute niobium with ferrovanadium is significantly diminished, as vanadium continues to have several advantages over niobium in steel applications.

Opportunistic producers

Abnormally high vanadium prices such as those seen in November 2018, will always encourage new supply, particularly opportunistic swing supply, such as secondary production or stone coal production in China. Furthermore, the increased global steel production during 2019, and the return of near US$100/t prices for iron ore amid a tight iron ore supply/demand balance as a result of the supply disruptions in Brazil, brought back to life previously marginal magnetite mines from China, increasing vanadium supply via co-production. As steel margins normalise and iron ore market returns to a balance, the Company excepts a reduction in vanadium production from co-producers.

The medium term outlook for supply, however, remains constrained. This outlook is informed by the significant hurdles to greenfield vanadium supply growth, while co-producers capacity is capped resulting in a modest outlook for sustainable new supply growth going forward.


While the medium to long term outlook for vanadium remains positive, the Company's low cost curve position means that it is well positioned to address the recent weakness in commodity prices. Bushveld Minerals' high-grade, long-life and low cost assets put the Company in a strong position throughout the commodity cycle (year to date average ferrovanadium price of US$48.2/kgV[1]). Moreover, the Company's vertical integration strategy provides a natural hedge to vanadium price volatility as well as a diversified revenue stream. The normalisation of the vanadium price is increasing confidence that VRFBs will become a long-term global feature of energy grids.

[1]London Metal Bulletin year to date average as at 20 September 2019.


In this report, Bushveld Minerals is pleased to report a strong set of financial results for the first half of the year, underpinned by operational improvements and effective cost control initiatives.

The Group generated revenue of US$78.0 million (H1 2018: US$83.7 million), representing a decrease of seven per cent from the prior corresponding period. The lower revenue reflects lower sales volumes.

The Group generated an EBITDA of US$41.0 million (H1 2018: US$42.8 million), representing a decrease of four per cent from the prior corresponding period, however the EBITDA margin was higher at 53 per cent (H1 2018: 51 per cent), as a result of the Group reducing its operating costs at Vametco.

Cash generated by the operating activities of the business was US$34.7 million (H1 2018 US$21.4 million). The investing activities of the business resulted in an outflow of US$11.4 million, with the majority relating to the initial US$6.8 million paid as part of the aggregate cash consideration of US$68 million for the Vanchem acquisition. The cash and cash equivalent balance for the six months ended 30 June 2019 is US$66.1 million (31 December 2018: US$42.0 million).


The Company is pleased to announce the appointment of Peel Hunt LLP as joint corporate broker to the Company with immediate effect. SP Angel Corporate Finance LLP remains the Company's nominated adviser and joint corporate broker, along with BMO Capital Markets Limited, which remains joint corporate broker.

Finally, I would like to make a special mention of Geoff Sproule, Bushveld's long serving finance director, who will be stepping down with effect from 30 September 2019 and will simultaneously resign from the board of directors of the Company. Geoff has been an integral part of the team that has helped Bushveld Minerals achieve so much since starting out as a junior explorer and rapidly transforming into the significant vanadium player it is now. I wish him all the best.

The Company will be announcing the new finance director this week, the management team and the board strongly believe fulfils all the criteria that Bushveld Minerals requires for the next phase of its growth.

It has been a productive year to date and the Company is steadily executing its strategy to grow its low-cost production base and build up the Bushveld Energy business. I look forward to the second half during which Bushveld Minerals will keep strengthening its position as a leading primary vanadium producer, offering a diverse range of products for the steel, chemicals and energy storage markets.

I thank you for all of your support.

Fortune Mojapelo

Consolidated Income Statement

For the six months ended 30 June 2019

                                        6 Months ended      6 Months ended        Year ended 
                                          30 June 2019        30 June 2018       31 December 
                                           (unaudited)         (unaudited)         (audited) 
                                                     $                   $                 $ 
Continuing operations 
Revenue                                     78,001,182          83,744,182       192,089,845 
Cost of sales                             (22,879,458)        (32,421,693)      (65,273,543) 
Gross profit                                55,121,724          51,322,489       126,816,302 
Other operating income                         412,905           4,648,360         7,420,109 
Selling and distribution 
 costs                                     (8,451,397)         (5,168,892)      (10,661,706) 
Other mine operating costs                 (1,565,719)         (1,098,381)       (2,508,971) 
Idle plant costs                             (284,266)           (546,623)       (2,688,422) 
Administration expenses                    (7,687,433)         (6,969,320)      (23,202,234) 
 Operating profit                           37,545,814          42,187,632        95,175,078 
Finance income                               2,679,963           1,097,335         1,987,333 
                                           (1,448,801)       (1,819,397)         (1,233,406) 
  Finance costs                                      -                           (3,232,425) 
   Share based payment economic 
    empowerment transaction                                        - 
   Movement in earnout estimate              5,912,435                           (6,091,514) 
Profit before tax                           44,689,411          41,465,580        86,605,066 
Taxation                                  (13,877,341)        (12,936,872)      (37,604,907) 
Profit after taxation                       30,812,070          28,528,709        49,000,159 
Attributable to: 
Owners of the parent                        21,542,145          15,108,930        30,215,509 
Non-controlling interests                    9,269,925          13,419,779        18,784,650 
                                        ==============      ==============      ============ 
Profit per ordinary share (note 
Basic and diluted profit per share 
 (in cents)                          1.92  1.57                      2.9 

All results relate to continuing activities.

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2019

                                         6 Months ended                6 Months ended                  Year ended 
                                           30 June 2019                  30 June 2018                 31 December 
                                                      $                             $                           $ 
                                            (unaudited)                   (unaudited)                   (audited) 
  Profit for the period 
   / year                                    30,812,070                    28,528,709                  49,000,159 
  Other comprehensive 
   income, net of tax: 
  Items that may be subsequently 
   reclassified to profit 
   or loss: 
  Currency translation 
   differences                                3,687,039                  (10,787,074)                (13,715,270) 
  Available-for-sale financial 
   assets - net change 
   in fair value                                (2,679)                             -                     659,007 
   Other fair value movements                         -                       276,781                      21,796 
  Total comprehensive 
   income for the period 
   / year                                    34,496,430                    18,018,416                  35,965,692 
                                        ===============           ===================           ================= 
  Attributable to: 
  Owners of the parent                       24,267,874                    10,648,883                  21,941,346 
  Non-controlling interests                  10,228,556                     7,369,533                  14,024,346 
  Total comprehensive 
   income for the period 
   / year                                    34,496,430                    18,018,416                  35,965,692 
                                        ===============           ===================           ================= 

Consolidated Statement of Financial Position

As at 30 June 2019

Company number: 54506

                                                                                                       30 June      31 December 
                                                                                                          2019                $ 
                     Note                                                                                    $ 
                                                                                                   (unaudited)        (audited) 
Non-current assets 
   exploration and 
   evaluation         5                                                                             60,629,669       57,150,425 
Property, plant and 
 equipment            6                                                                             58,647,894       47,881,162 
 properties                                                                                          2,868,332        2,816,007 
Deferred tax asset                                                                                   3,646,004        3,004,141 
Total Non-Current 
 assets                                                                                            125,791,899      110,851,735 
Current assets 
Inventories           7                                                                             24,358,804       17,193,018 
Trade and other 
 receivables          8                                                                             17,274,273       32,586,185 
 investment                                                                                          6,200,384        5,388,953 
Income tax 
 receivable                                                                                          2,538,283          251,382 
 financial assets                                                                                    2,308,594        2,311,272 
Cash and cash 
 equivalents          9                                                                             66,130,719       42,019,123 
Total Current 
 assets                                                                                            118,811,057       99,749,933 
Total assets                                                                                       244,602,956      210,601,668 
                                                                                                   ===========      =========== 
Equity and 
Share capital         12                                                                            14,921,079       14,921,079 
Share premium         12                                                                           101,003,256      101,003,256 
Accumulated profit                                                                                  42,989,282       21,447,137 
Foreign exchange 
 reserve                                                                                           (4,344,979)      (7,073,387) 
Fair value reserve                                                                                   (374,158)        (371,479) 
                                                                                                   -----------      ----------- 
   to owners of the 
   parent                                                                                          154,194,480      129,926,606 
 interests                                                                                          39,941,002       29,712,446 
Total Equity                                                                                       194,135,482      159,639,052 
 liability                                                                                           2,440,278        2,377,737 
 liability                                                                                           6,918,762         6,632,60 
 consideration                                                                                      11,441,175       17,427,512 
Borrowings                                                                                                   -                - 
Lease liability - 
 IFRS 16              11                                                                             4,524,958                - 
Total Non-Current 
 liabilities                                                                                        25,325,173       26,437,856 
Current liabilities 
Trade and other 
 payables             10                                                                            20,543,207       20,203,795 
Provisions                                                                                           3,734,243        4,320,965 
Leases liability - 
 IFRS 16              11                                                                               864,851                - 
Total Current 
 liabilities                                                                                        25,142,301       24,524,760 
Total Equity and 
 liabilities                                                                                       244,602,956      210,601,668 
                                                                                                   ===========      =========== 

Consolidated Statement of Changes in Equity

For the six months ended 30 June 2019 Attributable to owners of the parent company

                                                                         Warrant     exchange                                    Non- 
                                   Share        Share   Accumulated      reserve  translation   Fair value                controlling         Total 
                                 capital      premium       deficit                   reserve      reserve        Total     interests        equity 
                                       $            $             $            $            $            $            $             $             $ 
Total equity at 1 January 
 2018 (audited)               11,817,573   69,222,661  (13,121,418)    2,113,866    1,881,579  (1,052,282)   70,861,979    36,371,168   107,233,147 
----------------------------  ----------  -----------  ------------  -----------  -----------  -----------  -----------  ------------  ------------ 
Profit for the period                  -            -     15,108,93            -            -            -   15,108,930    13,419,779    28,528,709 
Other comprehensive income: 
Fair value movements on 
 investments                                                                                       276,782      276,782                     276,782 
Currency translation 
 differences                           -            -             -            -  (4,736,828)            -  (4,736,828)   (6,050,246)  (10,787,074) 
Total comprehensive income 
 for the period                        -            -    15,108,930            -  (4,736,828)      276,782   10,648,883     7,369,533    18,081,416 
Transactions with owners: 
Grant of warrants                      -            -             -      849,220            -            -      849,220             -       849,220 
Issue of shares                2,700,150   23,714,999             -            -            -            -   26,415,149             -    26,415,149 
Share issue expenses                   -  (1,080,161)             -            -            -            -  (1,080,161)             -   (1,080,161) 
Non-controlling interest               -            -             -            -            -            -            -             -             - 
Total equity at 30 June 
 2018 (unaudited)             14,517,723   91,857,499     1,987,512    2,963,086  (2,855,249)    (775,500)  107,695,071    43,740,701   151,435,771 
----------------------------  ----------  -----------  ------------  -----------  -----------  -----------  -----------  ------------  ------------ 
Profit for the period                  -            -    15,106,579            -            -            -   15,106,579     5,364,871    20,471,450 
Other comprehensive income: 
Fair value movement on 
 investments                           -            -             -            -            -      404,021      404,021             -       404,021 
Currency translation 
 differences                           -            -             -            -  (4,218,138)            -  (4,218,138)     1,289,942   (2,928,196) 
----------------------------  ----------  -----------  ------------  -----------  -----------  -----------  -----------  ------------  ------------ 
Total comprehensive income 
 for the period                        -            -    15,106,579            -  (4,218,138)      404,021   11,292,463     6,654,813    17,947,276 
Transactions with owners:                                         -            -            -            -            -             -             - 
Grant of warrants                      -            -             -    (849,220)            -            -    (849,220)             -     (849,220) 
Exercise of warrants             547,453    4,232,445             -            -            -            -    4,779,898             -     4,779,898 
Issue of shares                (144,097)    4,913,312             -            -            -            -    4,769,215             -     4,769,215 
Reserve transfer                       -            -     2,113,866  (2,113,866)            -            -            -             -             - 
Change in non-controlling 
 interest                              -            -     2,239,180            -            -            -    2,239,180  (19,739,180)  (17,500,000) 
Dividends paid to 
 interest                              -            -             -            -            -            -            -     (943,888)     (943,888) 
----------------------------  ----------  -----------  ------------  -----------  -----------  -----------  -----------  ------------  ------------ 
Total equity at 31 December 
 (audited)                    14,921,079  101,003,256    21,447,137            -  (7,073,387)    (371,479)  129,926,606    29,712,446   159,639,052 
Profit for the period                  -            -    21,542,145            -            -            -   21,542,145     9,269,925    30,812,070 
Other comprehensive income: 
Fair value movement on 
 investments                           -            -             -            -            -      (2,679)      (2,679)             -       (2,679) 
Currency translation 
 differences                           -            -             -            -    2,728,407            -    2,728,407       958,630     3,687,037 
Total comprehensive income 
 for the period                        -            -    21,542,145            -    2,728,407      (2,679)   24,267,873    10,228,556    34,496,429 
Transactions with owners: 
Issue of shares                        -            -             -            -            -            -            -             -             - 
Share issue costs                      -            -             -            -            -            -            -             -             - 
Non-controlling interest               -            -             -            -            -            -            -             -             - 
Total equity at 30 June 
 2019 (unaudited)             14,921,079  101,003,256    42,989,282            -  (4,344,979)    (374,158)  154,194,480    39,941,002   194,135,482 
----------------------------  ----------  -----------  ------------  -----------  -----------  -----------  -----------  ------------  ------------ 

Consolidated Statement of Cash Flows

For the six months ended 30 June 2019

                                         6 Months ended           6 Months ended             Year ended 
                                           30 June 2019             30 June 2018            31 December 
                                                      $                        $                      $ 
                                            (unaudited)              (unaudited)              (audited) 
    Profit before taxation                       44,689,412               41,465,580         86,605,066 
  Adjustments for: 
            property, plant 
            and equipment                         3,483,155                  624,093              6,039,339 
           Fair value 
            transaction                                   -                        -              3,232,425 
           Movement in 
            earnout estimate                    (5,912,435)                        -              6,091,514 
           Finance income                       (2,679,963)              (1,097,335)            (1,987,333) 
           Finance costs                          1,448,801                1,819,387              1,233,406 
           Changes in 
            working capital                       4,803,162              (8,457,041)           (25,350,569) 
           Income taxes paid                   (11,147,542)             (12,936,871)           (30,923,733) 
           Net cash 
            generated from 
            activities                           34,684,591               21,417,813             44,940,115 
                                         ------------------  -----------------------  --------------------- 
  Cash flows from investing 
  Finance income                                  2,679,963                1,097,335              1,987,333 
  Purchase of exploration 
   and evaluation assets                          (895,402)                 (20,567)            (1,553,219) 
  Purchase of property, 
   and equipment                                (5,807,169)              (6,055,346)           (11,205,702) 
  Acquisition of 
   interest                                               -                        -           (17,500,000) 
  Payment of Deferred 
   Consideration                                  (600,000)                        -                      - 
  Payment in advance for 
   of Vanchem                                   (6,800,000)                        -                      - 
  Net cash (used 
   from investing activities                   (11,422,608)              (4,978,578)           (28,271,588) 
                                         ------------------  -----------------------  --------------------- 
  Cash flows from financing 
  Finance costs                                 (1,448,801)              (1,819,387)                      - 
  Lease payments                                  (305,688)                        -                      - 
  Net proceeds of capital 
   raise                                                  -               20,615,493             19,006,177 
  Net proceeds from issue 
   of shares and warrants                                 -                1,578,851              4,139,825 
  Net repayments of other 
   borrowings                                             -              (6,902,380)            (6,907,035) 
                                         ------------------  -----------------------  --------------------- 
  Net cash (used 
   from financing activities                    (1,754,489)               13,472,577             16,238,967 
                                         ------------------  -----------------------  --------------------- 
  Net increase in cash and 
   cash equivalents                              21,507,494               29,911,812             32,907,494 
  Cash and cash equivalents 
   at the beginning of the 
   period                                        42,019,123                9,739,632              9,739,632 
  Effect of foreign 
   rates                                          2,604,102              (4,333 831)          (628,003) 
  Cash and cash 
   at end of the 
   period                                        66,130,719               35,317,613         42,019,123 
                                         ==================  =======================  ================= 
   1.         Corporate information and principal activities 

Bushveld Minerals Limited ("Bushveld") was incorporated and domiciled in Guernsey on 5 January 2012 and admitted to the AIM market in London on 26 March 2012.

The company's reporting date is 31 December. These unaudited interim financial statements are for the six months ended 30 June 2019 with comparatives to 30 June 2018. The twelve months to 31 December 2018 are audited.

   2.         Basis of preparation 

The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS") as adopted by the EU that are expected to be applicable to the next set of financial statements and on the basis of the accounting policies to be used in those financial statements.

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Guernsey) Law 2008.

On the instructions of the directors, the Group's auditor has performed specific procedures in accordance with International Standard on Related Services ('ISRS') 4400 'Engagements to Perform Agreed-upon Procedures Regarding Financial Information', on the financial information, solely for the purpose of providing a report of factual findings in respect of the financial information to the directors. The specific procedures performed do not constitute either an audit or a review.

The audited financial information for the period ended 31 December 2018 is based on the statutory accounts for the financial period ended 31 December 2018 The auditors reported on those accounts: their report was unqualified and did not contain statements where the auditor is required to report by exception.

IFRS 16 has been adopted in the interim financial statements and the impact is disclosed in note 11.

   3.         Use of estimates and judgements 

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates In particular, information about significant areas of estimation uncertainty considered by management in preparing the financial statements is described below:

   i.      Decommissioning and rehabilitation obligations 

Estimating the future costs of environmental and rehabilitation obligations is complex and requires management to make estimates and judgements as most of the obligations will be fulfilled in the future and contracts and laws are often not clear regarding what is required. The resulting provisions are further influenced by changing technologies, political, environmental, safety, business and statutory considerations.

   ii.    Asset lives and residual values 

Property, plant and equipment are depreciated over its useful life taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

   iii.   Post-retirement employee benefits 

Post-retirement medical aid liabilities are provided for certain existing employees. Actuarial valuations are based on assumptions which include employee turnover, mortality rates, the discount rate, health care inflation costs and rates of increase in costs.

   iv.   Surface rights liabilities 

The group has provided for surface lease costs that would accrue to the owners of the land on which the mine is built. The quantum of the amounts due post implementation of the MPRDA and the granting of the new order mining right to the group is somewhat uncertain and need to be negotiated with such owners. The group has conservatively accrued for possible costs in this regard, but the actual obligation may be materially different when negotiations with the relevant parties are completed.

   v.     Revaluation of investment properties 

The group carries its residential investment properties at fair value. The group engaged an independent valuation specialist to assess the fair value as at 31 December 2018 for residential properties. For residential properties, it measures land and buildings at revalued amounts with changes in fair value being recognised in other comprehensive income. Land and buildings were valued by reference to market-based evidence, using comparable prices adjusted for specific market factors such as nature, location and condition of the property.

   vi.   Impairment of exploration and evaluation assets 

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including by reference to specific impairment indicators prescribed in IFRS 6 - Exploration for and Evaluation of Mineral Resources. If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future iron ore and tin prices, future capital expenditures and environmental and regulatory restrictions. The directors have concluded that there are no indications of impairment in respect of the carrying value of intangible assets at 30 June 2019 based on planned future development of the projects and current and forecast commodity prices.

   4.      Profit/Loss per share 

From continuing operations

The calculation of a basic profit per share of 1.92 cents (year ended 31 December 2018: 2.9 cents), is calculated using the total profit for the six months attributable to the owners of the company of $21,542,145 (year ended 31 December 2018: $30,215,509) and the weighted average number of shares in issue during the six months of 1,119,727,953 (June 2018: 1,043,907,922). The dilutive effect of other shares in issue would be immaterial to the profit per share.

   5.      Intangible exploration and evaluation assets 
                                      and Iron          Coal           Total 
                                           ore             $               $ 
 As at 1 January 2018               60,862,691             -      60,862,691 
  Exchange differences             (5,265,485)             -     (5,265,485) 
  Additions                             41,861    1,511,358        1,553,219 
 As at 31 December 2018 
  (audited)                         55,639,067     1,511,358    57,150,425 
 Additions to at June 2019             741,867       153,535       895,402 
 Exchange differences                2,583,842             -     2,583,842 
--------------------------------  ------------  ------------  ------------ 
 As at 30 June 2019 (unaudited)     58,964,776     1,664,893    60,629,669 
--------------------------------  ------------  ------------  ------------ 

Vanadium and iron ore

The Company's subsidiary, Bushveld Resources Limited has a 64% interest in Pamish Investment

No 39 (Proprietary) Limited ("Pamish") which holds an interest in Prospecting right 95 ("Pamish 39"). Bushveld Resources Limited also has a 68.5% interest in Amaraka Investment No 85 (Proprietary) Limited ("Amaraka") which holds an interest in Prospecting right 438 ("Amaraka 85").

Under the agreements to acquire the licences within Bushveld Resources, the group is required to fully fund the exploration activities up to the issue of the corresponding mining licences. As the non-controlling interest party retains their equity interest, the funding of their interest is accounted as deemed purchase consideration and is included in the additions in the year to exploration activities. A corresponding increase is credited to non-controlling interest.

Brits Vanadium Project

The Company is in a process to secure regulatory approval in terms of section 11 of the Mineral and Petroleum Resources Development Act (MPRDA) for change of control in respect of the acquired Sable Metals & Mining Ltd subsidiaries. Following approval, Bushveld Minerals will commence with activities to delineate the shallow resource on the Uitvalgrond farm portion.

   --      NW 30/5/1/1/2/11069 PR - held through Great Line 1 (Pty) Ltd 
   --      NW 30/5/1/1/2/11124 PR - held through Great Line 1 (Pty) Ltd 
   --      GP 30/5/1/1/02/10142 PR - held through Gemsbok Magnetite (Pty) Ltd 


Coal Exploration licences have been issued to Coal Mining Madagascar SARL a 99% subsidiary of Lemur Investments Limited.

The exploration is in South West Madagascar covering 11 concession blocks in the Imaloto Coal basin known as the Imaloto Coal Project and Extension.

   6.   Property, plant and equipment 
                                        Buildings             Plant and                 Motor             Decommissioning             Assets under              Right                                Total 
                                        and other             machinery              vehicles                      assets             construction             of use 
                                     improvements                                   furniture                                                                  assets 
                                                $                     $                     $                           $                        $                  $                                    $ 
           Cost at 1 
            January 2018                  610,789            42,147,393                28,670                   1,507,013                  934,379                  -                           45,228,234 
           Disposals                            -           (1,180,001)              (30,017)                           -                        -                  -                          (1,210,018) 
           Additions                            -                     -                     -                     271,518               10,934,184                  -                           11,205,702 
           Asset under 
            capitalised                   730,388             3,310,376               246,498                           -              (4,287,262)                  -                                    - 
            differences                  (82,128)           (1,398,908)               (3,856)                   (202,636)                (125,639)                  -                          (1,813,167) 
                          -----------------------  --------------------  --------------------  --------------------------  -----------------------  -----------------  ----------------------------------- 
           At 31 
            (audited)                   1,259,049            42,878,860               241,295                   1,575,895                7,455,662                  -                           53,410,751 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
           Additions to 
            30 June 
            2019                                -                26,991                65,056                           -                5,715,122          5,396,776                           11,203,944 
           Disposals                            -                     -               (1,337)                           -                        -                  -                              (1,337) 
           Assets under                         -                     -                     -                           -                        -                  -                                    - 
            differences                    64,761             2,205,544                12,411                      81,059                  384,773            298,721                            3,047,270 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
           At 30 June 
            (unaudited)                 1,323,810            45,111,395               317,425                   1,656,954               13,555,557          5,695,497                           67,660,638 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
            1 January 
            2018                                -               809,055                     -                           -                        -                  -                              809,055 
            charge for 
            the year                      237,758             5,508,585               209,890                      83,106                        -                  -                            6,039,339 
           Disposals                            -           (1,180,001)              (30,017)                           -                        -                  -                          (1,210,018) 
            differences                         -             (108,787)                     -                           -                        -                  -                            (108,787) 
                          -----------------------  --------------------  --------------------  --------------------------  -----------------------  -----------------  ----------------------------------- 
           At 31 
            (audited)                     237,758             5,028,852               179,873                      83,106                        -                  -                            5,529,589 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
           Charge for 
            the six 
            to 30 June 
            2019                          282,011             2,842,373                53,083                           -                        -            305,688                            3,483,155 
           Exchange                             -                     -                     -                           -                        -                  -                                    - 
                          -----------------------  --------------------  --------------------  --------------------------  -----------------------  -----------------  ----------------------------------- 
           At 30 June 
            (unaudited)                   519,769             7,871,225               232,956                      83,106                        -            305,688                            9,012,744 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
           Net book 
            value 31 
            (audited)                   1,021,291            37,850,008                61,422                   1,492,789                7,455,662                  -                           47,881,162 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
           Net book 
            value 30 
            (unaudited)                   804,041            37,240,170                84,469                   1,573,848               13,555,557          5,389,809                           58,647,894 
                          =======================  ====================  ====================  ==========================  =======================  =================  =================================== 
   7.         Inventories 
                                    30 June 2019             31 December 
                                               $                       $ 
                                       Unaudited                 Audited 
Finished goods                        11,617,574             6,094,274 
Work in progress                       6,149,775             4,489,189 
Raw materials                          1,888,247             2,157,296 
Consumable stores                      4,703,208             4,452,259 
                               -----------------      ---------------- 
Inventories                           24,358,804              17,193,018 
                               =================      ================== 

The amount of write-down of inventories due to net realisable value provision requirement is nil.

   8.   Trade and other receivables 
                                                        30 June 2019           31 December 2018 
                                                                   $                          $ 
                                                           Unaudited                    Audited 
Trade receivables                                          7,971,371                 27,454,540 
Other receivables                                          9,302,902                  5,131,645 
                                               ---------------------      --------------------- 
Trade and other 
 receivables                                              17,274,273                 32,586,185 
                                               =====================      ===================== 

Trade receivables are non-interest bearing and are generally on 15 - 90-day terms. At 30 June 2019 the group had one customer which accounted for approximately 90% of trade receivables.

The directors consider that the carrying amount of trade and other receivables approximates to their fair value due to their short-term nature. As at the year end, no receivables are past their due date, hence no allowance for doubtful receivables is provided on the basis that expected credit losses are nil

   9.             Cash and cash equivalents 
                                                      30 June 2019           31 December 
                                                                 $                     $ 
                                                       (unaudited)             (audited) 
  Cash at hand and 
   in bank                                                  66,130,719        42,019,123 
                                                 =====================  ================ 

Cash and cash equivalents (which are presented as a single class of assets on the face of the Statement of Financial Position) comprise cash at bank and other short-term highly liquid investments with an original maturity of three months or less. The directors consider that the carrying amount of cash and cash equivalents approximates their fair value.

   10.       Trade and other payables 
                                  30 June 2019           31 December 2018 
                                             $                          $ 
                                   (unaudited)                  (audited) 
 Trade payables                     19,903,313                 12,140,084 
 Accruals                              639,894                  8,063,711 
                                    20,543,207                 20,203,795 
                             =================      ===================== 

Trade and other payables principally comprise amounts outstanding for trade purchases and on-going costs. The average credit year taken for trade purchases is 30 days.

   11.       IFRS 16 - Leases 

The Group has applied IFRS 16 for the first time in the period. IFRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a lease liability at the lease commencement for all leases, except for short-term leases and leases of low value assets.

This note explains the impact of the adoption of IFRS 16 'Leases' on the Group's condensed consolidated interim report and discloses the new accounting policies that have been applied from 1 January 2019. The Group has adopted IFRS 16 using the modified retrospective approach from 1 January 2019 and has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 January 2019.

Applying IFRS 16, for all leases (except as noted below), the Group:

a) recognises right-of-use assets and lease liabilities in the Statement of Financial Position, initially measured at the present value of future lease payments;

b) recognises depreciation of right-of-use assets and interest on lease liabilities in the Income Statement; and

c) separates the total amount of cash paid into a principal portion (presented within financing activities) and interest (presented within operating activities) in the Statement of Cash Flows.

Lease incentives (e.g. free rent period) are recognised as part of the measurement of the right-of-use assets and lease liabilities whereas under IAS 17 they resulted in the recognition of a lease incentive liability, amortised as a reduction of rental expense on a straight-line basis. Under IFRS 16, right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of Assets. This replaces the previous requirement to recognise a provision for onerous lease contracts. For short--term leases (lease term of 12 months or less) and leases of low-value assets (such as personal computers and office furniture), the Group has opted to recognise a lease expense on a straight-line basis as permitted by IFRS 16. This expense is presented within net operating expenses in the Income Statement.

The Group assesses whether a contract is or contains a lease, at inception of a contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

-- fixed lease payments (including in-substance fixed payments), less any lease incentives;

-- variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

-- the amount expected to be payable by the lessee under residual value guarantees;

-- the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

-- payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the Statement of Financial Position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

-- the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

-- the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

-- a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The Group did not make any such adjustments during the periods presented.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs.

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. The costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the Statement of Financial Position. The Group applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss.

A reconciliation of total operating lease commitments to the IFRS 16 lease liability at 30 June 2019 is as follows:


Operating lease commitments disclosed at 31 December 2018 10,709,178

Less: short term leases recognised on a straight-line basis as expense (191,010)

Less: discount effect using incremental borrowing rate (5,121,392)

Lease liability recognised at 1 January 2019 5,396,776

Of which:

Current lease liabilities 724,944

Non-current lease liabilities 4,671,832

Total 5,396,776

In addition to the recognition of right-of-use assets, lease liabilities and adjustments to net operating expenses for operating lease costs and depreciation coupled with adjustments to finance expenses and have been remeasured under the new standard.

   12.          Share capital and share premium 
                                                        Share Number    Share Capital        Share    Total share 
                                                                                           premium    capital and 
                                                                                    $            $        premium 
              Balance brought down 1 January 2018 
               (Audited)                                 875,894,905       11,817,573   69,222,661     81,040,234 
              Conversion of convertible bonds             32,499,147          413,649    2,991,090      3,404,739 
              Warrants exercised                          33,737,419          429,409    3,710,416      4,139,825 
              Shares issued                              152,749,172        1,944,191   18,080,981     20,025,172 
              Shares issued to directors and staff        24,847,310          316,257    8,017,103      8,333,360 
              Share issue expenses                                 -                -  (1,018,995)    (1,018,995) 
              Balance at 31 December 2018 (Audited)    1,119,727,953       14,921,079  101,003,256    115,924,335 
                                                      --------------  ---------------  -----------  ------------- 
              Balance brought down 1 January 2019 
              (Audited)                            1,119,727,953  14,921,079  101,003,256  115,924,335 
              Balance at 30 June 2019 (unaudited)  1,119,727,953  14,921,079  101,003,256  115,924,335 
                                                   -------------  ----------  -----------  ----------- 

The Board may, subject to Guernsey Law, issue shares or grant rights to subscribe for or convert securities into shares. It may issue different classes of shares ranking equally with existing shares. It may convert all or any classes of shares into redeemable shares. The Company may also hold treasury shares in accordance with the law. Dividends may be paid in proportion to the amount paid up on each class of shares.

As at the 30 June 2019 the Company owns 670,000 (31 December 2018: 670,000) treasury shares with a nominal value of 1 penny.

   13.           Events after the reporting period 

On 1 May 2019, Bushveld announced a conditional agreement to acquire the primary vanadium processing assets of Vanchem Vanadium plant, the ferrovanadium production business of SAJV as a going concern, and a 100 per cent of the outstanding shares of Ivanti Resources (Pty) Limited, a subsidiary of Duferco Participations Holding S.A, (collectively "Vanchem").

On 28 August 2019, it received approval from the Competition Commission of South Africa to acquire the Vanchem assets, without conditions. The transaction remains on track to be completed on 31 October 2019 and we expect the outstanding conditions precedent, being the cession of specific commercial agreements and South African Reserve Bank approval, to be satisfied.

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 or visit



(END) Dow Jones Newswires

September 30, 2019 02:03 ET (06:03 GMT)




Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20191117 10:47:02