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Summary
- Bushveld Minerals produced 1,649 metric tonnes of vanadium in H1 FY2020, which increased by 18 percent year on year.
- Ariana Resources reported a gross income of USD 9.9 million from Kiziltepe mine in Q2 FY2020, which improved from income in Q1 FY2020.
- The higher average realized price for gold and stock sale of silver supported the income stream.
Shares of Bushveld Minerals Limited were up by around 0.47 percent from the last closing price, and they were up by close to 65.29 percent from their 52-week low of GBX 7.75. Ariana Resources shares were up by around 2.44 percent from the last closing price and the shares touched their new 52-week high on 3 September 2020.
Bushveld Minerals Limited (LON:BMN) - FY20 production to range between 3,660 mtV and 3,950 mtV
Bushveld Minerals Limited is a vanadium producer and energy storage company based in Guernsey. The Company has assets in South Africa, and it has two processing facilities at Vametco and Vanchem. Bushveld Minerals is listed on the FTSE AIM 100 index
H1 FY2020 operational update (ended 30 June 2020) as reported on 2 September 2020
In H1 FY20, Bushveld Minerals produced 1,649 metric tonnes of vanadium (mtV), which increased by 18 percent year on year from 1,392 mtV produced in H1 FY19. The Company experienced production loss of close to 380 mtV in H1 FY20 due to the covid-19 lockdown. The production loss at Vametco facility was 300 mtV, and Vanchem facility was 80 mtV in H1 FY20. The Company sold 1,777 mtV in H1 FY20 at an average realized price of USD 24.4 per kilogramme of vanadium from its Vametco facility. The demand for vanadium was robust in China, and the prices were higher when compared to the other parts of the world. The increased demand in China was mainly due to the government-supported infrastructure projects, and the need is expected to sustain in H2 FY20. The demand for vanadium declined in North America and Europe due to subdued activity in the aerospace sector and shutdown of manufacturing facilities in H1 FY20.
Production at Vametco and Vanchem in H1 FY2020
In H1 FY20, Vametco produced 1,218 mtV as Nitrovan and Ferrovanadium, and the production fell by 12.50 percent year on year from 1,392 mtV in H1 FY19. Production cost at Vametco was USD 17.20 per kilogramme of vanadium (kgV), which declined by 11 percent year on year from USD 19.20 kgV in H1 FY19. Vanchem facility produced 431 mtV in H1 FY20.
Share Price Chart
(Source: EODHD/Others, Thomson Reuters)
Bushveld Minerals Limited's shares were trading at GBX 12.81 and were up by close to 0.47 percent as on 3 September 2020, before the market close at 10:30 AM GMT+1). BMN's 52-week High and Low were GBX 29.50 and GBX 7.75, respectively. Bushveld Minerals had a market capitalization of around £147.32 million.
Business Outlook
The Company revised its FY20 production to range between 3,660 mtV and 3,950 mtV, which is up compared to the last year production. Vametco facility would produce in between 2,700 mtV and 2,850 mtV at a cash cost in between USD 17.50 kgV and 17.90 kgV. Vanchem facility would produce in the range of 960 mtV and 1,100 mtV at a cash cost in between USD 18.40 kgV and USD 19.0 kgV. By the end of September 2020, the commissioning of Kiln-Off gas would be completed, and after installation, it would increase the production volume at Vametco.
Ariana Resources PLC (LON:AAU) - New vein discovered at Arzu South project at Kiziltepe mine
Ariana Resources PLC is a UK based company that is engaged in the exploration and development of mines in Europe. The Company owns the Kiziltepe and Tavsan gold projects in Turkey in JV with Proccea Construction and wholly owns Salinbas Gold Project. It also has an interest in gold & copper assets in Cyprus. Ariana Resources is listed on the FTSE AIM All-Share index.
Middle East Technical University, Ankara is conducting the geotechnical studies after the underground mining plans for Arzu South was completed. Ariana Resources completed a diamond drilling programme of 2,390.5 metres along with Zenith JV between April 2020 and June 2020. Ariana Resources owns Kiziltepe project in JV with Proccea Construction. The Kiziltepe mine is expected to have an annual production of 20,000 ounces of gold over eight years. The commercial production at the site started in July 2017.
Q2 FY2020 Operational update at Kiziltepe as reported on 27 August 2020
(Source: Company website)
In Q2 FY20 ended 30 June 2020, 4,679 ounces of gold and 61,986 ounces of silver was produced at Kiziltepe. The average realized price of gold was USD 1,717 per ounces in Q2 FY20, which was up from USD 1,598 per ounces in Q1 FY20. The average revenue per gold ounces that include gold and silver revenue sold in Q2 FY20 was USD 2,116.12 per ounces, which was USD 1,724 per ounces in Q1 FY20. The gross quarterly income was USD 9.9 million in Q2 FY20, which improved from USD 8.8 million reported in Q1 FY20. The silver kept in stock in Q1 FY20 was sold in Q2 FY20 that supported the revenue growth.
The operating cost of production fell from USD 533 per ounces in Q1 FY20 to USD 492 per ounces in Q2 FY20. The gold process recovery was 91.8 percent. During the period, 54,862 tonnes of ore milled, and the average plant feed grade for gold was 3.02 grammes per tonne. The figures stated are for JV.
Share Price Performance Analysis
One Year Chart (Source: EODHD/Others, Thomson Reuters)
Ariana Resources PLC's shares were trading at GBX 6.30 and were up by close to 2.44 percent against the previous closing price (as on 3 September 2020, before the market close at 10:30 AM GMT+1). AAU's 52-week High and Low were GBX 6.45 and GBX 1.75, respectively. Ariana Resources had a market capitalization of around £65.35 million.
Business Outlook
The Company is hopeful over the mining potential of northwest extension of Arzu South. Ariana Resources has the option to develop Arzu South by underground mining method or extend the pit by 200 metres to the northwest. It would also seek the possibility of resource drilling at Arzu South vein after the underground study.
