LONDON (Alliance News) - Bushveld Minerals Ltd on Thursday reported a year of "incredible progress", as it looks to become a "leading" global vanadium producer.
Bushveld, which owns the Vametco vanadium mine in South Africa, produced revenue of USD192.1 million in 2018, from just USD2.8 million in 2017.
Pretax profit was USD86.6 million, after a USD882,154 pretax loss the year before.
The steep increases were in part due to higher vanadium prices. The average price of ferrovanadium in 2018 was USD81.2 per kilogramme, well over double year-on-year. Vanadium is used to strengthen steel.
Bushveld reported production at the end of January for the year, with output 2,560 metric tonnes of vanadium from 2,649 tonnes the year before, short of guidance between 2,600 metric tonnes and 2,650 tonnes.
Bushveld blamed the shortfall on unplanned maintenance and repairs in the fourth quarter.
Looking at each business, Bushveld Vanadium had an "outstanding year", helped by the strong vanadium price rise.
Bushveld Energy, which is developing vanadium-based energy storage, is continuing to work with South African-state energy firm Eskom over developing a storage system.
The firm also owns Lemur, which is developing a coal mining and power plant project in Madagascar, which is moving towards project financing.
Bushveld, being a South African miner, is looking to list on the Johannesburg Stock Exchange during 2019 to gain access to local investors. It is not yet paying a dividend, but it has set out a free cash flow-based dividend policy for future payments.