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Thanks for confirming skibba.
Pdub, wherever you are you were a good poster and always stood up for yourself and defended bmn as much as possible for what you believed to be right at the time. You were always polite and a true gentleman. I have good memories of your "musings"and boat stories. God bless you and your family. Enjoy paradise my friend.
Ray
Sadly, yes @ MassiveRay
Scrolling through some posts due to a spamming troll called halfgoatman earlier I learned that pdub had passed away?
With a credit facility they can limp on, but its all deferred debt added to its other obligations. Sooner or later it will all catch up with them.
There are signs that things are reversing. Lots of orders being generated. eg Arms Manufacturers have the fattest order books they have seen for years. British Steel won a big order from Egypt for rail tracks. Baltimore needs a new bridge, cities need rebuilding. It will all slowly build up demand for steel. But will it happen soon enough to save BMN?
This is the updated rns Ben from 15th Dec: https://www.lse.co.uk/rns/BMN/definitive-sales-and-marketing-agreement-with-spr-h1q274x741r4o80.html
'SPRF marketing and sales arrangement will replace existing marketing and sales arrangements as and when they expire between June 2024 and June 2026.' - is that also when the credit facility is meant to kick in?
RNS 11 September 2023 -
SPR will provide a medium-term trade finance working capital facility to the Company, totaling ~US$25-30 million.
What about SPR's credit facility?
@Faramog, yes am registered on that as well and preloaded questions. Not really sure why they didn’t go to anyone else having specifically asked at the start of the call. Oh well
@Wessy ... Register on the IM .... on monday ... he has so far been pretty good about answering everything (even if it was 'I cannot talk about that')
'How can we say company does not need immediately they need to pay 7 millions to Orion shortly '
Actually that appears to be true, read the bit below in the middle:
60% of the CLN Balance (US$28.3 million) will be converted into a secured term loan ("Term Loan") on the following terms:
Interest: 6.0% ("Margin") plus the greater of (I) 3-month Secured Overnight Financing Rate ("SOFR") and (ii) 3.0% per annum.
Interest payable quarterly in arrears in cash starting from the last business day of the quarter in which the closing of the transaction occurs and on the last business day of each quarter thereafter. In the event that the Company has insufficient cash available to pay interest on its due date, the interest due on that date shall continue to accrue. While there is a continuing default, the Margin will be increased by 3%.
O Principal repayments structured to:
a. 25% of the Term Loan (US$7.1 million) to be repaid by 30 June 2024.
b. 30% of the Term Loan (US$8.5 million) to be repaid by 30 June 2025.
c. 45% of the Term Loan (US$12.7 million) to be repaid by 30 June 2026.'
_____________________
Obviously it means racking up even more debt and interest though but in terms of short term survival there does appear to be wiggle room.
Not true, I was on the call, I registered to ask questions but they never came to me. I think they restricted it to just SP Angel
"Same for BE, wasn't NM suppose to be trying to get electrolyte orders? The amount of money the company sank into that must be astronomical. "
$10m for the plant. Nikomarov's salary must have eaten a further $1m + running costs/staffing a few million more. And what do they have to show for it? F*ck all. Nikomarov's little pet project needs to be defunded and his salary is one cost that can be reduced.
What a sorry investor call that was. Only one person turned up to ask questions. CC must be tearing his hair out and wish he never took the job.
How can we say company does not need immediately they need to pay 7 millions to Orion shortly and need to raise money to fund day to day expenditures as they are not making any money at current price.2.2 millions wont last long and this sort of money would certaintly lead to shareholders wipeout!
The cost cutting that can be made pales in comparison to the lost revenue from the fall in vanadium prices - year on year (Q1 on Q1) average sales price will have reduced by about $13.5/kgV, that's $13.5m per 1000mtV produced / $54m if extrapolated out for an entire year. Craig might be able to get direct costs down further from here but spending is necessary to really reduce costs, like with the barren dam, and BMN don't have the cash to do that now. You then have significant financing costs and interest on the debt that can't simply be reduced. Of course that was Craig's plan from day one, to deleverage the balance sheet by selling off some of the assets, but so far all the financing has been eaten up by cash burn and legacy debts.
And what do you mean 'stopping production is not going to work, or even happen'? The losses per month now will be more than the $2.2m cash BMN has remaining, they won't have the funds to pay staff, suppliers etc without further funding forthcoming. It's not a tactical halting operations if it happens, it's a necessity.
He needs to jettison the areas that are leaking money which would help reduce costs, which are still to high. I have no doubt he has tried to offload Lemur and suspect we cannot give it away. Same for BE, wasn't NM suppose to be trying to get electrolyte orders? The amount of money the company sank into that must be astronomical. Hoping for an update as to what they are going to do with it next week.
I also think that this option of stopping production is not going to work, or even happen. There is no way they can lay workers off without any serious backlash, the unions are far more organised and militant than anything we have. Vanadium prices may be low but the company have wasted millions over the last few years which is hardly the workers fault.
Basically he needs to raise more cash, which he said wouldn't be necessary until next year earliest. Enough to keep lights on until V prices recover.
When Fortune left at the end of June last year there was $3.7m cash. Since we have seen the majority of the stockpile sold, borrowed $8.1m from SPR and issued around 1B new shares for equity and BMN are back producing the same as they were before with none of the major capex projects having gone ahead, with $2.2m cash left and significant interest accruing on new Orion loans.
Issues with SPR have confounded the situation but this vanadium price is simply unsustainable for an indebted miner like BMN and beyond any CEO's ability to navigate - the most Craig can do is buy a bit more time and hope V price recovers substantially and soon.
IS, you seem to be an argumentative soul. You obviously did not read my posts correctly or you would not have made the strikingly incorrect statements. I did not buy based upon rampers comments, neither did I ramp, I didn’t even consider the rampers comments, thankfully, when I sold my small holding. Neither didI state that all holders were taken in by rampers - hence my use of the prefix of “those”. I understand your pain at the moment due to the sp, and I hope it will soon recover, but please read posts correctly and stop interpreting them to form the basis of your attacks / arguments
I love a short term trade but this is just too risky given the precarious cash position. Administration or heavy dilution beckons...
Over the last two years this share has hardly let any trader escape with a profit and is in dire need of funds.But that wont stop gamblers from taking gamble I guess.
The word bargepole comes to mind. The cash position is dire. Unlikely to be anything left for shareholders. Good luck if you are in this for a trade
It's difficult to get your head round our current situation. Not that we are alone in this downward market trend. Resources and plant in place hust need to go canny till prices rise. We need to slow or mothball plant and sit tight with the backing of someone with vision of a turnaround. Maybe SPR will save us ? GLA
I averaged down yesterday to 1.1c. I think v price has good chances to increase in the medium term.
In EU, the CBAM will make steel importers pay the ETS starting 2026, one way to reduce CO2 emissions and reduce the tariff is to add vanadium in the steel. The US might put the same import tariff as under trump, between the announcement of the tariff on Chinese goods in April, to its establishment in October 2018, U.S imports from china grew 5-fold then plummeted. The timing coincided with the chinese rebar standard change and the spike in price. The steel tariff also led to more U.S. steel production. https://www.bis.doc.gov/index.php/documents/section-232-investigations/2793-vanadium-section-232-report-public-with-appendices/file
Property market will stabilise in China at some point, and the growth in India is offsetting some of china's decline.
factories of VRFB and other vanadium containing batteries are being constructed. This leads me to think that a rise is on the horizon.
Of course I could get snookered in the short term.
What happened to the samples ect for this, surely they can sell this wholly cost inducing function.