Bushveld Minerals, a struggling vanadium producer, has managed to secure a revised financing deal with the OMF Fund 111 (Orion), its major supporter, to stay afloat for the time being. The company faced a dire financial situation, with massive losses of $106 million in the past year and only $1.3 million in cash on hand, along with significant debt totaling $98.6 million.
CEO Craig Coltman addressed concerns about the company’s survival until the end of 2024, stating that while they have passed the going concern test until June 2025, certain assumptions need to hold, such as meeting production levels and maintaining the vanadium price. He admitted that the business cannot be sustainable at the current vanadium price and is heavily reliant on capital expenditure.
Despite these challenges, Coltman remains optimistic about an uptick in vanadium prices within the next year. The company recently reached an agreement with Orion to defer loan repayments and secure a cash injection to ease financial pressures.
However, internal risks including outstanding creditors and damaged supplier relationships continue to pose threats to Bushveld’s operations. Coltman emphasized the need to rebuild trust with suppliers to ensure the reliability of their assets and maintenance programs.
Addressing concerns about the delays in payments from Southern Point Resources, Coltman assured investors that the company is in a stronger position now with the support of Orion. He warned that any repeat behavior from SPR would not be tolerated and emphasized the importance of rebuilding trust within the organization.
Despite the challenges ahead, Bushveld Minerals remains hopeful for a turnaround in its fortunes with the continued support of its investors and a potential increase in vanadium prices in the near future.
