Bushveld Minerals (BMN) Status Update summary

Operational performance and cost management

• Q3 2024 vanadium production was 855 mtV, down 14.5% year-on-year; 9M 2024 production was 2,546 mtV, down 8.5% from 2023, both impacted by maintenance shutdowns and cash flow constraints.

• Q3 group sales were 859 mtV, up 1.2% year-on-year; 9M 2024 sales were 2,492 mtV, down 15.4% from 2023.

• Weighted average production cash cost for Q3 2024 was $27.50/kgV and for 9M 2024 was $27.80/kgV, both up year-on-year, influenced by lower production and a stronger Rand.

• Vametco's Q3 2024 production was 485 mtV, with costs at $30.9/kgV, affected by maintenance shutdowns and cash flow issues.

• Vanchem's Q3 2024 production was 370 mtV, with costs at $23.1/kgV; Vanchem sale completed in November 2024.

Financial and strategic actions

• Cost-cutting measures, including workforce reductions at Vametco and head office, and asset disposals (Lemur and Vanchem) are underway, targeting $8–10 million annualized savings by end-2025.

• Lemur disposal removed a $2.5 million liability to the Development Bank of South Africa.

• Completion of the Vanchem sale means Vanchem is no longer part of the group; all conditions, including regulatory approval, have been met.

• Vametco is now the core asset following these disposals.

• Manual efforts reduced the Barren dam level by approximately two meters, reflecting a focus on safety and operational effectiveness.

Financial position and liquidity

• Guidance for 2024 has been suspended due to working capital constraints.

• Current funds are insufficient to sustain operations and meet immediate liabilities; active engagement with stakeholders is ongoing to address liquidity.

• Liquidity issues have led to a controlled slowdown of production at Vametco, pending further funding.

• Options to improve liquidity are being assessed with shareholders, lenders, and advisors, with updates to be provided when material developments occur.

• Deferred consideration from the Vanchem sale will be received over three years, with a minimum of $5 million per year, paid quarterly.