Bushveld CEO on FY numbers & COVID-19 impact on operations

South African miner Bushveld Minerals has had a turbulent year, marked by a significant drop in the vanadium price which led to a 39% decline in revenue, totaling just over $116 million. Despite this challenge, the company managed to unveil a set of robust year-end numbers. The CEO of Bushveld Minerals, Fortune Mojapelo, sat down with CNBC Africa to discuss how the company weathered the storm of the COVID-19 lockdown and the strategies they employed to remain resilient. Mojapelo highlighted that the company, like many others, had to temporarily halt operations at their Vanchem plant during the lockdown but was able to pivot by accelerating their annual maintenance program and operating at a scaled-down capacity. Fortunately, they've now resumed operations at full capacity. Mojapelo also emphasized that they successfully reduced cash costs at the Vanchem plant by 5% year on year, a remarkable achievement in a time when mining costs are on the rise. This was attributed to an operational transformation program implemented in 2019, focusing on increasing efficiencies and throughput at the plant. Additionally, the acquisition of the Vanchem processing plant proved to be a boon for Bushveld Minerals as the plant's value exceeded their initial estimations. Bought out of business rescue for $53.5 million, the plant has significantly expanded their production capacity at a fraction of the cost of building a new greenfield plant. Mojapelo highlighted the strategic advantage of targeting underutilized brownfield assets like Vanchem. With this acquisition, Bushveld Minerals now owns two of just four operating primary vanadium plants globally, putting them in a strong position for organic growth. Looking ahead, Mojapelo acknowledged the volatility of the vanadium market but expressed optimism in the long-term fundamentals supporting price improvement. He emphasized the importance of ensuring that production costs remain low to sustain margins even during periods of low prices. Bushveld Minerals' focus on operational efficiencies and strategic acquisitions has positioned them well to navigate the fluctuations in the vanadium market and drive sustainable growth in the future.