Bushveld Minerals (BMN) Shares Rallied 6.61% on Media Response

The Bushveld Minerals Limited (LON: BMN) share price rallied 6.61% after issuing a statement regarding media speculation about Mr Kamran Sattar and Portillion Capital Ltd's intention to call a general meeting of shareholders to effect boardroom changes.

The company reassured investors that it had met with Mr Sattar and addressed all his concerns regarding its future direction. The talks between the two parties resulted in Mr Sattar confirming in writing that he no longer intends to call for a general meeting of shareholders. 

Bushveld Minerals reiterated its commitment to the investment with Southern Point Resources, concluding the Orion Mine Finance convertible loan restructuring and meeting 2023 production and cost guidance. Investors cheered the upbeat news released by the company today. 

However, the Bushveld Minerals share price has fallen 66.98% since the year started as investor sentiment towards the company remains bearish. The last significant announcement from the company apart from today was the Southern Point Resources investment. 

The company signed a binding term sheet with Southern Point Resources to provide funding worth US$69.5-US$77.5 million. The firm intended to use the funds to meet its immediate working capital needs and help retire some of its debt.

The funds raised from Southern Point Resources will also serve as an equity investment from SPR into Bushveld Minerals. The funds will also be used as a marketing and working capital solution to replace the Group's existing financing arrangements as they expire over the next 5-17 months.

Bushveld Minerals also released its interim results for H1 2023, which showed that the company generated revenues worth US$78.4 million, a slight improvement from the US$76.2 million generated in H1 2022. 

The company’s production of Vanadium and sales surged higher as it produced 1,784 mtV versus the 1,641 mtV generated in H1 2022. The company also sold 2,096 mtV compared to 1,644 mtV in the first half 2022. 

However, Bushveld’s net loss soared to US$12.5 million compared to the net loss of US$0.3 million in H1 2022. The downbeat data is what has triggered the long-term decline in BMN shares. 

Bushveld Minerals share price. 

The Bushveld Minerals share price rallied 6.61% to trade at 1.6525p, from Monday’s closing price of 1.5500p.