The Bushveld Minerals Limited (LON: BMN) share price plunged 8.2% after its full-year 2022 operating results showed that it produced 3,842 mtV over the 12 months, missing its annual guidance range of 3,900 mtV – 4,100 mtV. The company attributed the production miss to electricity load shedding at Vanchem.
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Investors reacted negatively to the news despite the company clarifying that production at its Vametco plant of 2,705 mtV exceeded the upper end of its guidance range of 2,550 mtV – 2,650mtV. However, due to the electricity load shedding, the Vanchem plant’s production missed targets by 200 mtV during H2 2022.
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Bushveld Minerals maintained a positive outlook for 2023, expecting to produce between 4,200 mtV and 4,500 mtV. The firm remains committed to hitting its long-term target of producing 5,000 mtV to 5,400 mtV annually. However, electricity load shedding has made it difficult for the company to maximise the production capacity of its Vanchem plant.
As a result, BMN shares are trading near their all-time lows printed in September 2022 as investor sentiment towards the South African Vanadium mining company remains negative. Given the company’s impressive results, the falling Vanadium prices could have triggered negative investor sentiment.
Fortune Mojapelo, Bushveld Minerals Limited CEO, commented: “I am pleased to report a year of production growth and completion of significant capital projects at Bushveld Minerals, despite external challenges related to electricity availability and supply chains. Pleasingly, we achieved record production over the year, with Vametco and Vanchem achieving a record quarter of production in Q4 2022. Vametco beat production guidance for the year, helped by the fact that its electricity supply is only curtailed in periods when the grid is under pressure, compared with the load shedding experienced by Vanchem in these periods.”
Global Vanadium prices have been inching higher since December, which is yet to translate to a rally in Bushveld Minerals' share price. The current low prices at which BMN shares are trading present a decent opportunity to accumulate BMN shares.
*This is not investment advice.
Bushveld Minerals (BMN) share price chart.
The Bushveld Minerals share price plunged 8.18% to trade at 4.545p, from Thursday’s closing price of 4.950p.
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