Bushveld Minerals Limited (BMN) Earnings Call Transcript & Summary

Yes. So I've been in the seat a month, I've spent a lot of time in the operations. Yesterday, I had the opportunity, I spent -- I went down to East London to visit the plant at BELCO to understand the process better. What I can tell you is that we're a month away of sending our product -- batch product to about 10 customers. That's a batch product of about 5 liters. The process thereafter is the customer needs about 2 weeks to qualify us, if you like, to determine whether the product is of sufficient standard. If we get the nod, the next step after that is they will ask for something between 5,000 and 10,000 liters of the product, which they'd pay for. That takes 8 weeks to send out to them, depending on where they are in the world. But that's a good estimate. They could take anything between a month or 2 to test that 5,000 to 10,000 liter on site before they come back and give a final verdict in terms of the quality of that product and determine whether they're going to provide us with orders. So realistically, if you look at that time frame, at best, we'd be in a position by the end of the year to make a confident call in terms of when those orders and the quantum of those orders are going to come. But until then, I'll stay close to the opportunities and the risks associated with that plant. That is about as much as I could say.

And there's another statement around that, which reads just follows, we were told that there were dozens of inquiries for electrolyte, but there's been no news. If you could just comment on that, that would be great.

I mean, I'm not going to comment on the past. My focus is the present and the future. And I think I've explained where we are with BELCO and the time frame in terms of realistically making a confident call as to the probability of the take-up orders. That's going to take another 2 or 3 months based on the current timeline. That's -- I think that answers the next -- the question you just posed as well.

And the next question reads as follows, why is it taking so long to commission the mini-grid?

Again, the past is the past, I'm looking at the future. What I can say is that the CellCube battery has been installed. It's been filled with electrolyte. What we've now got to do is connect the solar panels. And that should happen, or will happen, shall we say, in the fourth quarter latest. And that will complete the process.

Why didn't the Board act sooner to change CEO and protect shareholder value?

Look, it's not my role to discuss prior management decisions nor the Board's thinking prior to my arrival as the CEO. My immediate focus has got to be laser-focused on the operational improvements at Vametco and Vanchem and then maximizing value for the shareholders as a result.

The next question is around your headquarters and asks if the company is planning to move at any point.

We have no plans to move in the immediate future. We're paying a market-related rental on these premises. Moving offices now would just result in additional costs and quite frankly unnecessary disruptions.

Ironveld produce three products from magnetite, vanadium slag, titanium (III) and high iron purity, using a smelter process. Would Bushveld minerals ever consider the same as an additional income stream?

Our processes are designed and set up for vanadium products production. To produce other metals at this stage would involve a different extraction process. That's not something that I'm going to be on my radar right now when I'm laser-focused on getting the production of vanadium at Vanchem up to a stable rate.

And perhaps the final presubmitted question, does Craig have any share price goals by the end of 2023? Given what Bushveld have in their pipeline, does Craig expect a market recognition to upcoming announcements to raise the company's market capital?

Look, for me, it's just to focus on my priorities. And let me summarize them again. It's getting maximum value out of the two operations, my #1 priority. Resolving the barren dam and Sulphate Recovery Plant challenges at Vametco is a key issue. Achieving the short-term improvements of the Vanchem turnaround strategy to get to the 180 mtV levels in the next 6 months as a base going forward is a priority. Clearly, concluding the Orion debt restructure is very important. And then once that's all done and dusted, to start looking at the group's capital allocation strategy and prioritize projects that are going to give us the acceptable returns with manageable risks. And I think as we deliver and achieve these initiatives, we hope the market will give us some recognition on the work that has been delivered.

That concludes the presubmitted questions. As you can see, we've received a number of questions throughout today's presentation, and thank you to all the investors to submitting those. Craig, if I could just ask you to open up the Q&A tab and read out the questions, where it's appropriate to do so, I'll pick up near at the end.

Let me just scroll over here, have a look at some of these questions. Just be with me a moment. Let me go to the first one. The first one started with Lemur. I'm just trying to find that question. Here we go. What are your plans for Lemur? Can it be sold as nothing seems to have progressed from the original plans some 10 years ago? But [indiscernible] absolutely it can be sold and it must be sold. And that's got to happen. That's a clear focus of mine. The individual that's responsible knows exactly what good looks like. It's no longer appropriate in our stable. And we've got to move very quickly and get it out of the stable and sell it as quickly as we can for as reasonable a price as we can. And then another question about the BELCO takeoff. I think I've addressed that already. There's another question around, has Bushveld Minerals implemented strategic maintenance or risk mitigation measures to avoid future instance of unplanned downtime at the mines? Of course, I don't know to what extent how efficient we are in that space. But I would believe that the answer is no. We don't have an appropriate plant maintenance system. Because if we did, we wouldn't be having so many frequent interruptions around whether it's the SRP or whether it's the kiln or whether it's the barren dam. There may or may not be reasons for that. But that is an important focus. You need to get -- I talk about standard operating procedures. Part of standard operating procedures is to have a proper plant maintenance system in place. And that will be one of my focus areas going forward as well. It's critical in the mining industry. Does Craig expect the revised Orion deal to be later submitted to shareholders to be in any way materially different than that? No, there is no reason based on the terms of reference that I saw prior to joining the company in terms of what was on the public domain. And no reason to believe that the final deal is going to be any different to that. What is the anticipated outcome of the Mustang CLNs? I think we have to take a rain check on that. Let's see when Mustang make the announcement and the timing thereof. Following Craig's visit to BELCO, is there any update on his initial view? When does he expect -- I think I've explained that the realistic time frame and the art of the possible around those 10 potential customers. What I should have said is that, that doesn't mean that parallel to that, we're not going to get the marketing department to vigorously focus on additional potential clients. But I think by the end of this year, towards there, we'll have a very good steer in terms of our success or otherwise around customers' feedback, whether they qualify us on -- whether they are happy to qualify our product. And that will give a very good steer in terms of the likelihood of some offtake agreements. BELCO visit, when is the start -- and I think I've answered that. I think that's the lot. That's the end of the questions that are on the -- are live now. Thank you, Alexander.

Perfect. Craig, thank you very much for that. I think you've addressed those questions as you can from investors. And of course, the company will review all questions submitted today and will publish these responses on the Investor Meet Company platform. But just before we direct investors to provide you with their feedback, which I know is particularly important to the company, Craig, could I just ask you for a few closing comments?

Yes, certainly. First of all, I really appreciate everybody dialing in. So thank you very much for that. I hope I've adequately answered your questions. While I cannot assure you that you'll have found everything I said to your liking, I can always promise you that you'll get an honest and straightforward response from me. Sometimes, you need to get smaller before you can get bigger, so consolidate the operations before considering growth opportunities. Thank you for listening.

Perfect. And thank you very much for updating investors today, Craig. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will then take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team at Bushveld Minerals Limited, we'd like to thank you for attending today's presentation, and good morning to you all.