Date: Apr 10, 2019

In a note, the broker said the vanadium miner’s current share price of around 33p was a “base level” from which investors should look to build “longer-term positions”

Vanadium element

Vanadium is a chemical element that is often added to steel in small amounts in order to increase its strength

Bushveld Minerals Limited (LON:BMN) has been initiated with a ‘buy’ rating and a 45p price target by analysts at Peel Hunt as the broker touted “solid near-term growth plans” as well as further upside to the shares.

In a note, analysts said a 3-phase growth plan at the company’s Vametco vanadium mine and processing plant in South Africa, which was currently in phase 2, would be “the first step” in better monetising its resources base and predicted the project producing 5,000 tonnes per annum by 2022.

READ: Bushveld Minerals to supply Vametco mine with power from vanadium battery mini-grid

Vanadium is a chemical element that is often added to steel in small amounts in order to increase its strength. These alloys containing vanadium are commonly used to make tools as well as surgical instruments and knives.

Peel Hunt also believed that as resource updates from the Vametco mine and Bushveld’s Brits vanadium project, located nearby, began to be delivered in the second quarter of 2019, the company could use its cash balance to acquire more downstream processing capacity to increase its share of the vanadium market and “even further monetise its growing resource base” in the medium-term.

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