Shortage of high-grade concentrates will help Bauba Resources
Bauba’s Moeijelijk underground development and ramp up are progressing positively after the setback experienced between October 2021 to December 2021, noted previously. 29 700 tonnes of production were hauled in February 2022 and over 32 400 production tonnes were hauled in March 2022.
COVID-19 risks have reduced as vaccines have been rolled out, global stainless steel production is expected to grow by 10% this year and strong Chinese consumption coupled with lower South African production has reduced Chinese port stocks from 3,8 million tonnes at the end of October 2021 to 2,8 million tonnes at 22 April 2022. This decrease in port stocks is expected to continue. In addition, there is a shortage of high-grade concentrates which Bauba produces.
Opencast mining has commenced at our Kookfontein project near Rustenburg. The Kookfontein UG2 project will be for a remaining anticipated 12 months allowing Bauba to capitalise on current platinum group metals pricing. Bauba will commence mining the opencast LG/MG and UG1 chrome ore seams on this project should Nuco Chrome obtain the necessary mining right to do so. The Nuco Chrome mining right application for the chrome ore seams was lodged in March 2020 and if this is not granted within the next financial year, Nuco Chrome’s operation will cease until it is granted, resulting in considerable financial losses.
This report contains forward-looking information which represents the opinion of Bauba’s board of directors and has not been reviewed by the group’s auditor.
The auditor’s report does not necessarily report on all of the information contained in this announcement/financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement, they should obtain a copy of the auditor’s reports together with the accompanying financial reports from the company’s registered office.