Bushveld Minerals Share Discussion Threads

[dogrunner11] 31/12/2018 23:10

Best start learning fast, production is falling after investment, phase 3 on hold:-


“As part of the operational improvement initiative, designed to enhance Vametco's productivity, the Company is reviewing the timing and required investment to expand production capacity to 5,000 mtV.”

It’s in black and white, rampers are mugging off punters.

More in new year from me, in meantime enjoy the buzz.

[plat hunter] 31/12/2018 21:26

Psyboy.Becareful trying to catch falling knives. The safest place to pick a knife up is from the floor.Watch for the base.

[coldspring] 31/12/2018 21:07

I am a rookie bhoy but learning all the time. I do not need the proverbial taking....in fact no one does but that says more about you than me. I have made significant profit already from BMN and look forward to more in the future. Good luck and rude health to all in 2019!

[dontay] 31/12/2018 19:32

Recent comments from the company have been quite transparent imo. No- one is suggesting that 'raising capital' is a requirement for a dual listing... but it's clear they DO intend to use the listing it as vehicle to facilitate raising more capital. As Fortune has already made clear... there are several large investment vehicles lined up waiting to take a stake in the company but that requires BMN to be listed in SA. I don't see 'capital raising' as a problem due to the far reaching investment plans they have outlined. It will most likely take the form of a straightforward institutional placing which will be very much seen as a positive dilution by the market and nothing to be concerned about. If ALL the bits of the mining jigsaw AND the battery plans start falling in place in the next few months... the amount of investment in the infrastructure cross the whole company that's going to be required to carry those plans to fruition is going to be huge! It's going to be an investment for the VERY long term... not just the next couple of years and those plans certainly CANNOT be left to the revenues received from the volitilties and vagaries of the spot market! In the Nov 3Q update the company have clearly stated that the five point business plan for BE will be funded from "outside of Bushveld Minerals". As that is the only division the has funds at the mo those funds will have to come from elsewhere! It's only ONE of those 'points' (Building the electrolyte facility) that was given the $10 million price tag! Also Fortune's Xmas message from last week leaves no doubt whatsoever:"Work towards a listing on the Johannesburg Stock Exchange (JSE) has commenced. Listing on the JSE will give South African capital exposure to the Bushveld's story while broadening the Company's access to capital to facilitate its ambitious growth plans and enhance its profile further in the global capital markets"

[psbhoy] 31/12/2018 18:45

Coldspring = genius...NOT!!

Big sells have been in the background for the last 10 trading days. Why else has the price been dropping?

Big sealer of the scene, and soon...just watch the price rise back up.

Wait too long and you will miss the boat...again, no doubt.

[plat hunter] 31/12/2018 18:13

Zeus..That would mean you value the company at around 3 billion lol

[plat hunter] 31/12/2018 18:11

Dimi is clueless.Read the statement for yourselves.. It clearly states the purpose for a dual listing."To increase Bushvelds access to capital as part of the overall growth strategy"Why even say that if you're 100% NOT going to raise capital?I find it astounding Dimi that you think you can provide assurances to people that there will be no placings.Happy new year everyone else.

[plat hunter] 31/12/2018 17:42

In my view Metals are also essentially a hedge against the dollar. If you're short of the dollar then you want to be in company's that are producing metals for the sheer benefit of leveraged returns over the appreciation of the metal.Cash is depreciative in it's very nature, spend it on good companies with good earnings and forget about the SP's.

[coldspring] 31/12/2018 12:26

Big sell going through here I reckon. Can buy 10k at 38.6 will keep my powder dry till next session

[vauch] 31/12/2018 08:25

aidenabettin.

That is why aim is high risk.

but you get one that will buck the trend at times and would be lifechanging if you play the long game not the quick buck.

ive been at this for 30 years as a part time investor. made and lost but over the time have sold out of cos at 50 100% profits to then look back 5 years later to see 1000 to 5000% upside. as I say they are few but the do happen I look at this stock and I see its growth will be like Arm Holdings.

bout it will take time and some big dips on the way, the only time to panic is when you borrow to buy and can cover the purchase due to price dip, don't play with what you don't have.

[psbhoy] 31/12/2018 06:27

The beauty of BMN dmitribollokov, is that it is NOT a new tech mining company....it is a fully operational, producing miner....producing one of the most sought after commodities in the world, not just because of the ever increasing demands for Vanadium in steel production, BUT also because of its use in the creation of VRFBs.

When you consider the hard and fast evidence that VRFBs have been identified as a key element in the future of mass energy storage throughout the world, and in particular in BMN's own continent of Africa, you need look no further then BMN as a sound investment.

So I would suggest it is wrong to use the term "new tech" for BMN itself, as this is somewhat misleading to those that are unaware of the fully integrated nature of BMN.

Without suggesting "the Bushveld Perspective" website as the best source of info on BMN, I would strongly suggest that you at least have a read on there as a source of information on the reality of the £Billions that will be invested in energy storage over the next decade.

Anyone listening to those suggesting a bubble is in serious risk of making a huge mistake. IMHO

[aidenabettin] 30/12/2018 22:24

ABM suspended pending liquidation.Bellzone suspended pending liquidationNext???.AIM resource stocks are being manipulated to death. Many unfortunate investors are going to see fantastic assets removed from AIM to be picked up by creditors for next to nothing leaving multiple pi's with nothing

[zeusfurla] 30/12/2018 22:18

psbhoy Agree. You wouldn't believe this stock had risen so much in the last 2 years from reading some posters on this BB. Any genuine investors who have done a minimum of research into BMN will be able to draw their own conclusions. This stock remains hugely undervalued at around 4-5x PE ratio even without taking into account any of the prospective growth areas next year.

[dmitribollokov] 30/12/2018 21:54

When people on a bulletin board (lse) start touting (an albeit very exciting) speculative south african new tech mining company as a safe haven against a wider equity market melt-down, it’s time to question their understanding of equity market dynamics - no matter how good their understanding of the individual company’s fundamentals might seem to be...

[psbhoy] 30/12/2018 21:51

My oh my, it's just incredible how much of a concerted effort on various BB we are now seeing to try ands talk down this share.

Smacks of extreme desperation guys...BUT the fundamentals as well as the current levels of weekly profit speak for themselves.

Happy to continue holding and to let you all look rather foolish come the next 4-6 weeks..Also very happy that this BB is frequented by so few...possible because nobody is interested in anything that the majority of you actually have to say.

Back to LSE for me as the quality of posts and depth of knowledge is frankly so much more abundant.

Anyone willing to take a wager that the price of Vanadium rises by 10-20% over the next 4/5 weeks?

[dmitribollokov] 30/12/2018 20:19

Lot of words there dontay, the salient point is this though...

“The detailed process design within the facility will follow the process flows created through the aforementioned test work. The capital expenditure required to build the electrolyte plant is approximately $10 million”

$10m is chicken feed for them, they are chucking off more cash than that a quarter. There will be no capital raise. The capital raise due to dual listing is a red-herring from someone who has no idea how markets work. THERE IS NO REQUIREMENT FOR A CAPITAL RAISE TO LIST ON ANOTHER EXCHANGE. Just in case people are still confused.

That said I still think the wider market is pretty horrendous and coupled with the vanadium spot pull-back, the share price here could actually go back into the 20s. As such, I am still currently on the sidelines.

Doesn’t change the end game here though.

[plat hunter] 29/12/2018 23:24

Thank you Dontay.. that is a really useful post. Much appreciated

[dontay] 29/12/2018 16:34

There isn't any ambiguity over the the intention to raise capital, as the very last sentence of the Q3 operational update issued only last month makes quite clear... after also making it quite clear exactly what it will be raised for:The USTDA awarded a grant to UET and Bushveld Energy in support of the Eskom project and the development of future applications for energy storage and VRFBs in South Africa. USTDA's approval process included external technical verification of the technology and the proposed project, indicating confidence in the long-term viability of both UET's technology and expected opportunities for energy storage in South Africa.Electrolyte production facilityThe EIA process for the ELIDZ site is advancing with completion expected in the first half of 2019. This process needs to be completed before the construction of the electrolyte facility commences.Test work on the project has been performed by two external parties in the conversion of vanadium feedstock from Bushveld Vametco into vanadium electrolyte, yielding positive results for both single and mixed-acid electrolytes. The results are preliminary; however, Bushveld Energy expects to be able to start supplying electrolyte samples to potential customers in the coming months. These activities are important in verifying Bushveld's objective of using an intermediary vanadium product from its mining and processing activities to reduce the cost of conversion into electrolyte. Such efforts are an example of the merits of Bushveld's vertically integrated strategy.The detailed process design within the facility will follow the process flows created through the aforementioned test work. The capital expenditure required to build the electrolyte plant is approximately $10 millionIn October 2018, the World Bank Group announced a $1 billion programme to support the deployment of energy storage in low to middle income countries. The programme is expected to mobilise a further $4 billion in donor funding and private sector investment to deliver 17,500 MWh of energy storage in these countries by 2025. This announcement is not only an excellent development for energy storage globally, but for Bushveld Energy and its market focus on Africa. With typically over 1/3 of World Bank Group funding directed to sub-Saharan Africa, the programme will likely aim to deliver 5,000-6,000 MWh of storage in Africa alone, or an average of 1,000 MWh per year. Similarly, most of the storage deployed for future projects under the programme will be to ensure greater integration of renewable energy, applications that require long duration, daily storage, which fits into the technical and commercial superiority of the VRFB technology;In August 2018, the South African Department of Energy (DoE) issued a draft Integrated Resource Plan ("IRP") for South Africa. As a member of the South African Energy Storage Association (SAESA), Bushveld Energy supported SAESA's engagement with the DoE, including formal commentary on key topics. Three key topics included:i. to ensure that energy storage facilities do not require generation licences;ii. to permit technologies such as energy storage to replace allocations for other technologies, such as 9,000 MW of natural gas capacity for peak-time generation, where storage is able to provide the same system benefits at equal or lesser cost; andiii. to ensure that energy storage co-located with generation facilities does not lead to double counting of capacity and only the net output capacity of such co-located facilities or mini-grids is calculated.The commentary period ended in October with the final IRP expected in early 2019, leading to significant advancement for the South African power sector, including energy storage.Post Q3 activities - overview of Bushveld Energy Business PlanThe business plan for Bushveld Energy focuses on five types of revenue-generating activities in the midstream and downstream segments of the vanadium value chain. These activities have a low capital requirement relative to the mining business. These five activities broadly include:1. Electrolyte manufacturing, including building and operating a chemicals plant that purifies vanadium feedstock and converts it into a liquid electrolyte. The electrolyte is sold to VRFB companies or direct users / buyers of VRFB systems;2. Renting (or leasing) vanadium electrolyte, which is a new product under development. In the product, Bushveld Energy can retain ownership of electrolyte and rent it to the VRFB user. The product is unique to VRFB energy storage technology and essential not just to cover vanadium price peaks, but to also implement a long-term pricing strategy which reduces the upfront capital cost to make VRFB one of the most commercially competitive energy storage technologies in the market;3. Assembly of VRFBs through an investment in the construction of an assembly plant for a VRFB product (that will be operated by another party). This activity could involve direct investment into a VRFB company or companies that would own the facility as well as the technology;4. Direct selling of VRFBs in African markets as a value-adding local firm. In addition to identifying opportunities suitable for VRFB energy storage, this activity includes developing local logistics chains covering importation, transport, installation and maintenance of the VRFBs and key components (e.g. electrolyte);5. Developing and investing in African energy storage projects, which goes beyond purely identification of suitable sites and extends to defining the economic business case for VRFB installations. The activity also includes designing the technical and commercial structure of projects that use VRFBs. Finally, the activity includes direct equity investment into such projects.Implementation of these five activities will continue to follow principles of strategic partnerships and implementation only where value can be created. Implementation of many of these activities will be done in collaboration with external parties, including development agencies, funders, renewable energy developers and energy storage component providers. By design, all activities will rely to a significant degree on capital from outside of Bushveld Minerals!!!!!

[plat hunter] 28/12/2018 19:08

Coldspring..

If this trades lower than 35.75 then 30p will be hit no dramas inmv.

Despite the claims of the fan boys, that recent statement has only served to create uncertainty. Will they or won't they raise capital? Until the matter's cleared up one way or another then I don't expect to see the pressure lifted from the sell side.

[coldspring] 28/12/2018 19:03

Thanks for the information dontay, I am fully out at the moment. Waiting and watching, delays mean big opportunities in a good company like bushveld. Good luck sir!

[dontay] 28/12/2018 18:48

Coldspring, its possible that this latest 'retrace' is directly the previously delayed Eskom battery commissioning was targeted to be completed before the holiday period. If there's no confirmation on Monday that the target was met, then rightly/wrongly there will be an immediate assumption of further serious delays in what is a vital part of the project... the share price will almost certainly have further to fall!

[jc2706] 28/12/2018 18:04

I would also add that the size of the vanadium market as stated is incorrect. 80000 tonnes would be closer but still a small market.

[jc2706] 28/12/2018 18:02

I see that the poster still didn't understand. The fault is mine as I didn't clarify sufficiently so thanks to the person that did.

[coldspring] 28/12/2018 17:02

Back up to around 50p initially arab3 the broker target is 87p though. There is dividend news due in q1 2019. It has had a go at 50p twice and dropped back.

[arab3] 28/12/2018 16:48

how much would you expect it to rise after your 35p buy ?