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"70k down because of listening to the rampers"
That's just admitting you're stupid. Investing 70k in something you don't understand the down side but take advice of non qualified people on an anon board
People like you shouldn't be let anywhere near an investment platform
Interesting times hearing for him. First Reabold and now Bushveld,
Looming cash crunch here....
Re "Vanchem and Mokopane is around half the total combined company, so what we have left must be worth around the same at least that SPR will have paid at a fire-sale price, you'd think. "
Unless half the vast amount of debt that BMN that owes went with the Vanchem sale - I don't think.
The bottom line is that the company was overstretched by FM and his ambition and was funded through unserviceable loans which rightly need to be repaid. CC has been firefighting since he took over. Sadly, the horse had bolted by that point and this is a last desperate throw of the dice.
As for me, I'm 70k down by listening to the rampers who posted with such passion and authority. (Solely my fault and an expensive lesson learned.)
Would the last one out please turn off the lights.
Compare FM,s ability to trade thru years of debt with no threat of administration to Craigs, even after receiving payments still continuing to threaten this outcome instead of surviving.
I still thought that this would be the eventual outcome, but CC seems to be adverse to carrying a little more debt and letting it playing out.
I was and am very suspicious of him and the fortunate timing of the SPR deal soon after arriving. He is playing everything by the book and can justify his actions, but what is his motives/plan?. Earlier talk of a great company seems at odds with his current actions/words.
Since he arrived, he has now sold half the company and removed any potential future growth for shareholders. We have been led to believe things are so terminal that any bad deal is a good one.
He rather makes Alfa's point ... they get the other 50% for nothing
Yes marc.. there was evidence of multiple accounts.. but i'm convinced there was also a concert party of hooligans too.. I did my share of having the worst offenders removed but i wasn't the only one as i kept seeing posts removed that wasn't me.
It's become such a dirty business.. (as if it wasn't already)
Https://portillioncapital.co.uk/Portillionletter-BMN-06-05-24.pdf
New article for those that are interested
Keeps the lights on a bit longer .. enough time to organise the pillage of Vametco as well ....
Only thing that will save BMN is a sustained and rapid vanadium price rise
"They bought Vanchem for US$68M, spent many millions on upgrading the kilns, paid millions in interest and now sell the thing for "*UP TO*" US$40.6M. Fantastic!"
_________________________________
'As previously notified on 23 October 2019, the total consideration for the acquisition was reduced from US$68 million to US$53.5 million, of which US$30.5 million was payable in cash (US$30 million on closing and US$0.5 million after two years) and the balance (US$23.0 million) would be satisfied through the issue of Bushveld Minerals unsecured convertible loan notes.'
Not great but I suspect it was either that or ceasing operations.
Well its turned out the way I thought it might go with SPR, but somewhat faster. So what is left? 100% of Vametco producing about 2300-2600Tpa. Manufacturing costs around $23-26/kg. Product sells for around 10% premium.
CC has reduced other costs like H/O wages and sales commissions, etc, saving a few million $ here and there, so future C2 costs (all other non-production costs) which were typically around another $10/Kg may be as low as $5/Kg going forwards now Vanchem's sustaining capex and costs is also removed.
Vanchem and Mokopane is around half the total combined company, so what we have left must be worth around the same at least that SPR will have paid at a fire-sale price, you'd think. Survival chances have improved greatly but still risky until V price is above $30/Kg.
They bought Vanchem for US$68M, spent many millions on upgrading the kilns, paid millions in interest and now sell the thing for "*UP TO*" US$40.6M. Fantastic!
Metatron - Almost like they are the same person, but no, that could never be the case...
Odd how the gang of abusive terrorists who all magically appeared at the same time have now left the building? Makes you wonder dunnit..
Im not sure what people expected given the urgent need for cash? Hard pill to swallow but a raise at current prices would have been worse to my mind
Fortunately, our turnaround at Vanchem has allowed us to achieve meaningful value for this asset which we are able to monetise over a very short space of time and focus on getting the Vametco plant and its long-life mine into an efficient, sustainable, cash-producing position."
That will do for me.. for now.. it's not the end of the road by far.. ignore those who have some perverse reason to see this company die
I totally agree with your sentiment Marc 001.I bought 50000 more this morning. Not to forget, the sale of Lemur and the offloading of Cellcube in the near future, but maybe Craig will reassess this. Then there is the reverse takeover of Mustang by some AI company, which gives Bushveld a stake. We still have 50 percent holding in Belco. All the best to the LTHS from a sunny county Lietrim.
'dire nature of the update' - are you for real, lol? Slight exaggeration there, Bushveld continues to be in business, there's nothing 'dire' about that.
Looking at how the SP has reacted (14% up to 10% down) reflects the dire nature of the update. Looks like LTHs here are doomed.....
'the company has given away it's most valuable asset for a fraction of the price it is worth.'
So what's it worth in a bear market then with the companies back against the wall with creditors calling...?
We still get 25% of the FCF for 3 years, so not completely given away.
Except it owns manufacturing plant worth more than $200M to replace, so bring on the administrators, get this stuff sold off to the highest bidder, not just the first guy who managed to get their foot through the door, pay back orion and other debts, and then return the rest to existing shereholders - it's going to be more than the £13M quid that co is supposedly valued at at present
TBH without this the company would be bust so no choice.
Marc - what's the point of having no dilution if the company has given away it's most valuable asset for a fraction of the price it is worth ?
It was never going to be amazing news, but I'll take survival rather than bust given I have £160k tied up in this investment.
Ok so we lose the Vanchem asset, but the upside is we still benefit from 25% of the FCF from it for 3 years after the sale with non of the risk and it appears (for now) we have escaped further dilution.
Just need V price back to $35-40/kg and with Craig at the helm we should be ok going forwards.