- Vanadium producer Bushveld Minerals cut its production guidance for the full-year owing to disruptions related to industrial action and unplanned maintenance.

'As a result of the industrial action and an unplanned seven day kiln maintenance exercise, Vametco's 2018 production guidance has been reduced downwards from 2,850 mtV (metric tonnes of vanadium) to 3,000 mtV to between 2,600 mtV and 2,650 mtV,' the company said.

In the three months to September 30, vanadium nitride production fell 14.6% to 537 mtV, from a year earlier.

Lower production was offset somewhat by soaring vanadium prices during the quarter.

Vanadium prices increased 24% during the quarter to $85.8a KgV and 137% over the past 12 months.

The company vowed, however, to ramp up production and efficiencies at Vametco in a bid to continue benefiting from rising Vanadium prices owing to strong demand from China.

'While higher vanadium prices partially mitigated the impact of the production shortfall, with the Company expected to generate healthy cash flows, Bushveld intends to use this opportunity to sustainably maximise production volumes and drive operating costs down, said Fortune Mojapelo, CEO of Bushveld Minerals.

'Accordingly, we are pleased to have commenced with Phase 3 of our expansion plan, which will increase capacity at Vametco to 5,000 mtV per annum. Phase 3 will also benefit from advancement of the Brits Vanadium Project, which has yielded encouraging drilling results.

At 10:31am: [LON:BMN] Bushveld Minerals share price was +1.45p at 40.25p

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