Bushveld Minerals Share Discussion Threads

[zwift] 26/10/2020 13:15

Mauricewolf.

Stu! Is that a prison term?

[mauricewolf] 26/10/2020 12:43

Zwift

Stu should really be worried there are boundaries you know even here.

[zwift] 26/10/2020 12:22

Nvhltd

Im glad you’re back, I've been worried all weekend that Mo’s Wife had sent the Cops round to arrest you

[zwift] 26/10/2020 11:59

Knuttie

Pot-Kettle!

Are you back in BMN this week, it was BUR And BOO last week

[gah123] 26/10/2020 11:51

It's not rocket science. Part of the $65m financing will be used to repay the Nedbank debt. The existing cash remains the same.

[nvhltd] 26/10/2020 11:41

Gah: are you double counting the $24 cash or cash equivalents? Didn’t Fortune say that included the drawdown on available loans? So is that the loans they are paying back with the new loan?

[knuttie] 26/10/2020 11:41

You’ll
Be selling up then NVH.

[parob] 26/10/2020 11:40

Intra-day reversal suggests we saw the bottom of the dip earlier at 12.75p mid price.Looking good for the next leg up now.

[nvhltd] 26/10/2020 11:34

Cheers: BE might not be capital intensive at the moment, but the time is coming if they are going to expand from zero to wherever they hope to be in the short term.

You have mentioned the cash equivalents $24 million. No problem, it’s there, but no other potential costs have been mentioned such as:

The construction of the electrolyte plant.
Mokopane preproduction costs and possible ramp up.
The minigrid. They have spoken about the funding being on commercial terms, but who is the lender.
Lemur ongoing costs.
Ongoing support costs to Enerox.
Invinity possibly running out of money next year which mean we will have to support them or our share will be diluted.

As I say the trouble is the opaqueness of the financing of the next 2 to 3 years.

Personally I believe the low Vanadium prices, the time it is taking for it to recover and various delays threatens to derail Fortune’s grand plan. He has far too many spinning plates and if one comes crashing down then the rest can.

If everything aligns we could be sitting pretty - eventually, but I think he is a very worried man at the moment. The opportunities via ESKOM and South Africa could yet mean he is trying to bite off more than he can chew.

I don’t normally draw comparisons, but I started watching a series on Netflix last night called ‘Bad Boy Billionaire’ about the rise and fall of 4 Indian billionaires. While I don’t draw any direct comparisons with them and Fortune what is interesting is how their businesses eventually failed.

[parob] 26/10/2020 11:34

Dip being aggressively bought up.

[gah123] 26/10/2020 11:10

BE energy is 84% owned

[gah123] 26/10/2020 11:07

Plus cash and cash equivalent of US$24.6 million as at 30 June 2020. BE operations are not capital intensive. If required, project level funding is an option.

[nvhltd] 26/10/2020 09:59

The source of funding for BE is so opaque.

If I recall Mikhail owns circa 24 to 26% of BE, but in 5 years it has never been disclosed how he is funding he’s participation and share of the company.

BE has generated no income, but is clearly spending lots of cash. BMN is clearly the cash cow for BE to survive and yet Mikhail seems to be on a free ride. His share hasn’t been diluted to cover his share of any costs over 5 years, but he’ll be happy to take his cut if they start delivering.

How are they going to fund the purchase of Vanadium from BMN?
How are they going to fund the operation of the electrolyte plant to break even?
How are BMN / BE going to fund the leasing of Vanadium electrolyte?
Who or how is the funding of the minigrid at Vametco?

We have submitted our first ESKOM bid so we have to assume they have answers, but after 5 years investors are none the wiser of the workings of BE and we are literally 11 weeks away from winning or losing our first bid.

The reality is that despite the interviews, presentations, research and RNS announcements we are still very much in the dark.

[nvhltd] 26/10/2020 09:43

Here’s the way I see it if they can conclude the process of completing the loans.

They are taking on $65 million in new debt and paying off the existing $22.2 loans (Including interest). The net position is $42.8 million cash to spend albeit debt.

However, the new loans do not cover the dilution caused by the issue of new shares to Duferco. I can’t remember the exact trigger dates, but the share price now is circa 13p and therefore will cost more than the start of the year and much more than when we entered the Duferco CLN originally.

Then next year we have the same situation. A cash sum due to Duferco and a possible issuance of shares that might or might not cause dilution.

Like Zwift said those remaining funds together with any self generated funds are expected deliver the expansion plans at Vametco which we now know won’t be this year, but will be delayed by upto 5 years and GO TOWARDS CRITICAL PHASE 1 repairs at Vanchem.

He was clear in the words used. He said DELIVER at Vametco and go TOWARDS at Vanchem. Which means they don’t have the funds to complete Vanchem (but might be relying on self generated funds for the completion of phase 1 and future phases).

Then the elephant in the room is funding BE if they win any VRFB orders. It might be a nice problem to have, but they are going to need some upfront capital very soon if they want to be in a position pay suppliers etc to participate in the ESKOM BESS and other projects. ESkOM and other customers might make upfront payments, but they will still need their own source of funding for cash flow purposes at least. Let’s remember BE are penniless.

[plat hunter] 26/10/2020 07:40

Cheers Gah

[parob] 26/10/2020 07:15

Let's have another crack at 15p this week then.

[gah123] 25/10/2020 21:08

The Conversion Price will be the lesser of (i) 130 per cent of the volume weighted average closing price of a Bushveld ordinary share for the 15 Trading Days leading to the date on which the Drawdown Notice is served; and (ii) 25p.One of the best financing deals I've seen on AIM

[gah123] 25/10/2020 20:59

We are still waiting for your reply to the below:Any positive 'facts' that have kept you in for 4 years? Just for balance, obviously :)GL

[plat hunter] 25/10/2020 19:25

CLN are usually converted at a discount to the future share price. They therefore not only dilute the issuance but provide the recipient with an incentive to sell.Given that the equity is used to securitise a debt, the lenders only option to derisk the loan is usually to sell.

[zwift] 25/10/2020 19:15

Gah.
Can you show me your workings out and how you come to $50m to invest ?

Also in your last but one post you nefariously missed the work CRITICAL when referring to Vanchem’ critical refurbishment program.

BMN are in discussion with Nedbank on the outstanding term loan and revolving credit facilities, including discussions on the potential pre-payment of the outstanding debt facilities on completion of the PFA. The outstanding balance of the Nedbank facilities is ZAR375 million (circa US$21.9 million), plus accrued interest of US$0.3 million.


Are you saying Nedbank $21.9 and Duferco $7.65m will or wont be paid off

Please can you tell me who the 3rd party/s will be that take up the CLN

Would it not be a better idea to offer BOGOF Type of deal for existing LTHs

[gah123] 25/10/2020 18:31

Once financing is concluded and including third party take up and repayment of all debt, Bmn will have circa $50m to invest in increasing production.

[zwift] 25/10/2020 16:57

Gah..
Ive read the RNS and its you thats trying to mislead Ive included the RNS so you can check





30 September 2020

Bushveld Minerals Limited

("Bushveld Minerals", "Bushveld" or the "Company")

Bushveld enters into US$30 million Production Financing Agreement with Orion Mine Finance

&

Announces a Convertible Loan Note Instrument to raise up to a further US$35 million

Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage provider, with ownership of high-grade assets in South Africa, is pleased to announce that it has signed a long-term Production Financing Agreement of US$30 million (or the "PFA") with mining-focused investment business Orion Mine Finance ("Orion"), primarily to finance its expansion plans at Vametco and debt repayment. Drawdown on the loan is subject to completion of certain conditions precedent as described in this announcement.



Under a separate investment agreement, Orion has also conditionally agreed to subscribe for a minimum of US$10 million, and a maximum of US$20 million of convertible loan notes under a US$35 million convertible loan notes instrument (the "Instrument"). The Company intends to seek other subscribers for the balance of the total. The Instrument's proceeds will go towards the first phase of Vanchem's critical refurbishment programme and debt repayment.



Since both the PFA and the Instrument require the prior written consent of Nedbank Limited ("Nedbank"), the Company and Bushveld Vametco Alloys (Proprietary) Limited ("Vametco Alloys" or the "Borrower") are in discussions with Nedbank on the outstanding term loan and revolving credit facilities, including discussions on the potential pre-payment of the outstanding debt facilities on completion of the PFA. The outstanding balance of the Nedbank facilities is ZAR375 million (circa US$21.9 million), plus accrued interest of US$0.3 million.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"We are excited to announce the innovative funding agreement with Orion, which puts us on track with our expansion plans at Vametco, and we look forward to further elaborating on these plans and the impact on our business in the coming months.

Importantly, the long-term nature of the PFA and its early repayment options caters for the cyclical nature of the vanadium market and enables Bushveld to take advantage of the long-life, high-grade resources we are proud to own at Vametco, for the benefit of all our stakeholders. The Instrument's proceeds will go towards the first phase of Vanchem's refurbishment programme and debt repayment.

In addition, I am pleased to announce that the previous owner of Vanchem, Duferco Participations Holding S.A., has agreed to accept an early repayment of US$11.5 million of their US$23 million convertible loan notes issued in accordance with the terms of acquisition announced on 23 October 2019. US$6.5 million will be repaid through the issue of new Bushveld shares and US$5 million of the loan notes, plus interest of US$1.15 million will be settled as a cash payment. This puts us in an even

[dontay] 25/10/2020 14:01

The Vametco, Vanchem and Mokopane facilities are located within relative proximity to each other and connected by road AND rail.