Bushveld Minerals Share Discussion Threads

[smithless] 20/10/2017 18:06

Thanks nickderby, always happy to listen to someone else's view.

[sherlock2020] 20/10/2017 17:45

Good explanation nickderby - plus they don't have anywhere near as good a VRFB partner as we do. Or the coal assets...

[nickderby] 20/10/2017 17:32

So moving things along further.

The market is valuing Largo at £241m plus £165m, effectively £406m if it was debt free.

Our production of around 3,300 tonnes pa is around one third of Largo's, but our product is both 5 times the revenue and coincidentally around 5 times the profit.
So even at a 26.5% holding, our profits will be at least around 44% of Largo's total. Probably more due their large interest payments.

So perhaps a market cap of 44% of Largo's adjusted market cap would seem fair.
That's 44% of £406m, around £179m.

Seems about fair when you consider the current quarter's expected profitability.

On that note, I will switch off for the weekend.
Thanks for the comparison.
Have a good weekend :)

[nickderby] 20/10/2017 17:15

Smithless - Just to assist you...
Largo's debt is currently around £165m.

V2O5 currently sells at around $8 per kg.
Nitrovan (our product) currently sells at around $40 per kg.

[nickderby] 20/10/2017 16:59

Smithless, Just as a starter....
I think you need to take Largo's huge debt into account!

Also, they produce V2O5.
We produce a superior product to FeV!

A very poor comparison ;)

[smithless] 20/10/2017 16:35

Just as a comparison as to how mad BMN valuation looks, look at LARGO Resources (TSX: LGO). It produces 3.5x more than BMN and is capped at £241m. Meanwhile, BMN is capped at £79m and only has an equity stake of 26.5% in Vametco. I think you punters are going to be very disappointed with the valuation of Greenhills Resources and the interims due by the end of November should be a laugh. All in good fun

[beardj07] 20/10/2017 15:22

You forgot:

grandmasterglitch = Numpty

[smithless] 20/10/2017 11:12

nickderby- yes BVL would be an associated company (20-50% of the voting shares). I wish you the best with your investment here, but I will wait for the interims for more clarity. From my calculations BMN only has a 26.5% stake in Vametco and it's about to demerge its second largest asset. The company is principally a Vanadium play and if prices keep falling back to US$20kgv today's valuation of £79m looks toppy to say the least. This is most probably why it had no choice to go to Atlas Cap to fund the business. For clarity, I propose to go short once the demerger goes unconditional

[nickderby] 20/10/2017 09:16

Smithless, sorry but BVL is not a subsidiary company in the accountancy world.
Anything less than 50% is classed as an 'associated company' at best.

[smithless] 20/10/2017 09:10

nickderdy - point taken on the 'reversal' and not wholly owned, but BVL should still be listed as a sub, even with a 45% shareholding

[nickderby] 20/10/2017 08:41

Smithless, you need to come forward a few months. You quote the initial RNS.
Later, to avoid the RTO rules, Yellow Dragon were brought on board.

So wholly owned, became 45% owned.

[smithless] 20/10/2017 08:37

nickderby - taken from RNS 9 May 2016 quote 'Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Africa is pleased to announce that its wholly owned subsidiary, Bushveld Vametco Limited ("BVL"), has signed a Share Purchase Agreement ("SPA") with Evraz Group S.A. ("Evraz") for the conditional purchase of its 78.8 per cent economic interest in Strategic Minerals Corporation ("SMC"), which owns the producing Vametco vanadium mine and plant in South Africa' ??????

[nickderby] 20/10/2017 08:10

Smithless, please do a little more research.

BVL is not listed as a subsidiary because it is not a subsidiary. To be a 'subsidiary' BMN would need to own in excess of 50% of BVL.

If you check out the website and RNS's....

'Bushveld Minerals has an interest in Vametco through its 45% shareholding in Bushveld Vametco Limited, which in turn owns a 78.8% shareholding in Strategic Minerals Corporation'.



The other 55% of BVL is owned by Yellow Dragon.

As to your question mark over valuation, wait for the quarterly report for 30th September 2017, which is due out in the next few days. Those figures will show why we are undervalued.

DYOR

[smithless] 19/10/2017 17:01

dryboy, I have and Bushveld Vametco Ltd was set up as a special purpose vehicle to do the Vanadium deal. BVL is supposed to be a wholly owned subsidiary of BMN, but there is no mention of it in its list of subsidiaries in its audited reports and accounts as of 28 Feb 2017. I may be an oversight, but quite an important one as BVL owns 78.7% of Stategic Mining Cor, which owns 75% of Vametco and if this asset is held outside BMN, BMN only gets its agreed share 33.75% of profit as a minority and has no asset, thus the question mark on valuation.

[dryboy1] 19/10/2017 16:11

Smithless. For all the information you require read the bushveld perspective

[dryboy1] 19/10/2017 16:11

Smithless. For all the information you require read the bushveld perspective

[smithless] 19/10/2017 12:25

Why this company is worth £75m is a complete mystery. Perhaps some can explain? It obviously needs a lot of cash to get the business anywhere near cash generation. No institutional investors would touch it, so it had to go to for death spiral finance. If one looks at the Vanadium deal done with Bushveld Vametco Ltd (not owned by BMN), Stategic Mining Corp and Vametco Holdings Limited (the 100% owner of the mine) Vametco Holdings should make say $13m EBITDA for the full year, before capex (mining companies are big capex spenders), I calculate BMN at best will make $3m EBITDA for its 45% holding in Bushveld Vametco ltd, but is unlikely to receive much of this in cash due to capex requirements of the mine. Another thing I don't understand, why did Bushveld Vametco repay the bridging loan for the acquisition? I have looked through the accounts and BVL is not listed as being owned by BMN, so I can only assume BVL owns the asset, not BMN? Who owns BVL? Can someone explain this? As for spinning off the Tin business, whatever way the company spins it, the asset will come off the balance sheet of BMN. I also suspect the tin ventures and all BNM investments are going to need a lot of cash spent on them before they are anywhere near financial viable.

[wolf_in_the_bath] 13/10/2017 22:22

Knickers !!!!!!!!!!!! You've become a complete nuisance on the LSE board laughing out loud . Think someone's been telling porkies son ? Remember this porkie ? " we are gonna be looking 10p in the rear view mirror here soon ? " laughing my F ing wolf face off !!!!!!!!!!!!!!!!!!!!!!Forever Wolf of Wolfhampton.....

[katylied] 03/10/2017 11:30

This proposed Tin demerger looks very positive to moi. This is about the only way (short of selling the assets) that BMN can get any Tin value recognised. Hopefully there will be a prospectus published prior to the AIM listing. That may well be an AIM requirement, but is also really necessary, as up to date info on the UIS mine/resource in particular, is a bit thin (mine pre-dates the JORC system).

A couple of points though. No mention of VBkom so far and nothing has ever linked them with UIS. I am again wondering if VBkom are at all serious, or have now fallen by the wayside. Secondly, it would appear that AfriTin will be listed with even more shares in issue than BMN. I guess that is workable, but for a new company it pretty much guarantees there will be a future share consolidation if the company continues to trade (a stand-alone Tin company might also attract a predator).

To that end, there is the possibility the BMN could preempt that 'shares in issue' situation, by having its own share consolidation, prior to listing AfriTin. Nothing in the wording of the recent RNS would preclude that. I'm not saying this will happen, just observing that it might better optimise things going forward...

[seanywauny] 01/10/2017 23:16

-https://seekingalpha.com/article/4110881-china-rattles-vanadium-supply-chain-high-can-vanadium-prices-go

[katylied] 25/9/2017 14:30

Convertible bonds to be issued. On first reading, the terms don't look too shabby. Should put an end to the endless 'Gonna be a Placing' gibberish for a while...

Now, what about that Mokopane mining licence?...

[goldguru2017] 18/9/2017 11:12

Please allow me to bring your attention to this low-market capitalisation, high potential gold/copper exploration company that has assets in the ‘Eye of the Storm’ – the White Gold Area in the Yukon, Canada.

Kestrel Gold (TSX Venture Exchange symbol KGC.V)

- Recently acquired acreage in one of Canadas most prolific gold areas – the ‘Eye of the Storm’ White Gold Area in the Tintina Gold Belt.
- Easily accessible, excellent infrastructure, safe jurisdiction.
- Sampling just finished, funded drilling programme about to commence
- >100g/T Gold sample from Clear Creek – excellent potential
- Peak values of 12,400 ppb Au from soil sampling on Val Jual
- Relative low market cap – CDN$4.2 million
- CEO with proven track record of growing public companies share price by multiples
- Leading Canadian gold geologist, Jean Paulter, running drilling campaign
- Nearby to discovered goldmines (Coffee, Golden Saddle)
- Val Jual /10 Mile Creek acreage surrounded by active 2017 programs by other companies
- Drilling news flow expected before year-end

Please do your own research on the Company before investing. Thank you for your time.

[seanywauny] 09/9/2017 18:36

Oil is dead mate!

[happyholder123] 09/9/2017 09:28

HNR -
TWO wells successfully drilled with abundant oil and gas in samples extracted!
Fracking and FIRST OIL next month!
Don't miss this train!