Bushveld Minerals Share Discussion Threads

[nickderby] 07/4/2017 16:43

SP Angel.....

Bushveld Minerals Limited's (LON:BMN) Vametco acquisition is immediately earnings enhancing assuming vanadium prices remain at new highs, reckons house broker share price Angel.

Today, Bushveld signed off on its long-awaited and transformational deal to buy Russian firm Evraz's 78.8% stake in Strategic Minerals Corporation.

The latter holds 75% of Vametco Alloys which in turn runs the Vametco vanadium mine and process plant 8km northeast of Bushveld's Brits project.

"If vanadium prices continue to rise Vametco will not only be a cash cow, it could be a cash elephant," says analyst John Meyer in a comprehensive note.

For Evraz, Vametco was a minor plant which could easily be cast adrift with a US$16.5mln price tag looking a lot better in roubles.

For Bushveld, Vametco is a major opportunity to save over $200mln in capital costs and four to five years on the road to development.

"Critically the company has saved a minimum of three years on feasibility, financing and construction with the added benefit of taking on the Vametco plant at a time of rising vanadium prices and with a fully committed management and operating team," says the analyst.

The acquisition will add cash flows, profits and the potential for dividend distribution depending on vanadium prices, he adds.

SP Angel also noted that a restated JORC resource at Vametco is estimated to contain 139mt grading 2.1% “with scope to increase the reserve base by targeted exploration of the inferred resources".

The mine and plant is one of the cheapest primary producers of vanadium in the world with all-in cash cost of production at US$17.33 per kg of Vanadium, says Meyer.

Valuing the Vametco operations, the broker says if it was to use the PFS (prefeasibility) assumed price of US$7.5 per pound for vanadium pentoxide and its implied Ferro-Vanadium ‘FeV’ price then the net present value is 244mln at a 12% discount rate on a more conservative and cautious model.

Overall, for the Bushveld group, the broker has a target price of 11.6p and rates the stock a 'buy'.

[bookwormrobert] 07/4/2017 16:33

Thought about it. Reopened short with double my original stake.

[bookwormrobert] 07/4/2017 15:18

Thanks for your compliments! I cashed in the short a couple of days ago - made a very small profit, enough for a night out. I should have kept it open, of course, but got put off by the crazy ramping on LSE. Expecting a desperation share placement to be announced over the weekend / in next few days, and the share price to subsequently crash; as far as I can see it, it's the only move BMN's management have left. How else are they going to pay off the bridge loan?!?

[beardj07] 07/4/2017 08:03

Bookworm stop talking rubbish. How's the short working out?

[bookwormrobert] 07/4/2017 07:58

But no finance in place to replace the bridge loan - extremely risky.
Also, very high AISC of vanadium production - compare to by-product producers, not other primary producers (there's the deception). Barely commercially viable.

[vauch] 05/4/2017 13:42

End of tax year will see a lot juggle stocks.
But tomorrow will be start of new tax year and all to play for, to my mind shorting this is a mugs game.

[gilesgraves] 05/4/2017 13:32

This is a serious question. Bearing in mind today's share price action and the continuing confidence of those long on this share, what are the shooters doing today? We have this presentation tomorrow and RNS news is being taken as being very positive although some disagree the majority see these are very string moves forward. Bearing all that in mind please can the shooters post to say what they are thinking at this point. Are you adamant and keeping your positions or are you starting to close in order to see what happens over the next few days.?

[vauch] 05/4/2017 13:23

Wolf_in_the_bath
5 Apr '17 - 09:53 - 4704 of 4706 0 0

Minorminer should be ignored he's fool

And I suppose you are not?

[wolf_in_the_bath] 05/4/2017 10:46

Hopefully JimmySt will soon reappear on LSE board to put you rampers in your place :D Minorminer / Alfacomp hey guys couldn't get rid of that Blueface chap could you :D

[vauch] 05/4/2017 10:02

Loglorry.
What a lame comment

I've no doubt BMN is a multinational company now with assets worth billions. It became that overnight after a few RNS announcements. This spike will be sold into.

Every spike is sold into otherwise it would not be a spike.

[wolf_in_the_bath] 05/4/2017 09:53

Minorminer should be ignored he's fool

[sonofbanjosinger] 05/4/2017 09:24

Oh yes he is one of the best ..quality Trolling at its best... not. Play your games boys ....

[wolf_in_the_bath] 05/4/2017 09:10

I see Blueface has returned on LSE he's a quality poster guys ; )

[sonofbanjosinger] 05/4/2017 08:30

This never happened over night ...its been there for all to see for years ....you just weren't luckily enough to see it....I would get bookworm to close his short before he loses his pocket money....Bookworm ....sold out just before a 300% increase ...puts the funds into BMR which duly drops 49% and then shorts BMN ....a share masterclass in the making.

[loglorry1] 05/4/2017 08:23

I've no doubt BMN is a multinational company now with assets worth billions. It became that overnight after a few RNS announcements. This spike will be sold into.

[sonofbanjosinger] 05/4/2017 08:17

Lognob...solar..even better we have a little company that will be able to sort that out as well.

[loglorry1] 05/4/2017 08:15

Enlighten me Sherlock how much would this proposed power plant and transmission line cost?

[sherlock2020] 05/4/2017 08:05

You obviously know nothing about madagascar loglorry1 so just put away the gun you are fiddling with.

[loglorry1] 05/4/2017 07:59

Just more puff to get stock / warrants away. This is a horrendously expensive proj which will never happen. Solar much cheaper now and no need for v expensive power lines. Environmental disaster for Madagascar just won't happen.

[sonofbanjosinger] 05/4/2017 07:50

Have a nice day boys.....

[sherlock2020] 05/4/2017 07:48

The idiot shorters on here are going to be horrendously burned by this one.

-- BFS in 12 months
-- Preparation by both parties of an Environmental Impact Assessment for the Project;
-- Preparation by both parties of EPC and O&M contracts for the IPP plant and the EPC contract for the transmission line within 18 months;
-- Cooperation between the two parties to secure both debt and equity funding for the project;
-- Potential establishment of a future company for the Project upon completion of the BFS, in which Sinohydro's parent company, PowerChina, may take an equity interest;
-- Lemur will continue the development of its mine in order to supply coal to the Imaloto IPP.

Fortune Mojapelo has delivered the 3rd stunning blow to the shorters in only 5 days. By the end of the week Bushveld Minerals will own a complete Vanadium mine and processing plant.

Ask yourself why these rank amateur commentators on here are trying to talk this share down on the basis of no fact. It is because they cannot face up to the fact that they did not spot this opportunity when it was priced 5 times lower. Whilst they are telling you that it is all rubbish now the chances are that they will right now be desperately trying to close their shorts and jump aboard the leaving train.

Bushveld Minerals will probably be taken over for 100p share price in 3 years time, and Fortune put in charge of a division of a major mining company.

[loglorry1] 05/4/2017 07:45

Bookworm agree a total rampfest. However I disagree about betting against the loons. I'd bet nust are sellers niw. They'll say anything to sucker in new buyers to offload stock to.

In addition still loads of warrants around and now an extra 41m shares to feed into the market. Today's RNS is another attempt to bring in new buying to absorb these IMHO.