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Eyups........
Is there any info regarding how the work force and their union are reacting to the situation, in particular the machinations of interested parties in gaining the company and its assets for next to nothing. Do they expect to be retained by whoever takes control?
Started: NatResInv, 21 May 2024 16:52
Last post: NatResInv, 21 May 2024 16:52
"Whereas the gold price is often driven by fear, copper’s rise reflects a more optimistic industrial outlook around the world, particularly in China. Copper is in such demand because with the energy transition moving towards electrification, more will be needed in everything that moves, from cars to heating. Like lithium and cobalt for batteries, copper is the new darling of the commodity markets." (Source MSN article).
The key bit being: 'more optimistic industrial outlook around the world, particularly in China'.
Here's hoping V get's dragged up with the rest of the commodities space!
Started: 0308966, 18 May 2024 18:07
Last post: Ambiorix, 21 May 2024 10:45
Protests at the Rhovan mine are increasing EU prices, per Metis.
Thanks for that, Lindon.
Ah yes, a rising tide lifts all boats…well, perhaps not all, and especially not the ones I’m invested in.
It moves with the nasdaq and nasdaq just broke an all time high.
It's certainly not performance related - they just announced a $13m loss for Q1 with V now 10% lower than their average sales price in Q1 so heading for an even bigger loss in Q2... but they remain solvent and ready to benefit when V does eventually turn.
Started: Lindon, 19 May 2024 15:06
Last post: Lindon, 19 May 2024 15:06
@BushveldMin_Ltd the Bill Chipane note is damning and I look forward to the boards response however after undertaking a through review of the proposed transaction. I have to protect my own and clients interest and will be voting FOR the transaction.
it is opportunistic of SPR.
https://x.com/kamsattar/status/1792086628971708527?s=48&t=tT-u2maftvtvfGWS_76-YQ
Started: wildtiger, 17 May 2024 08:12
Last post: ma5k, 18 May 2024 00:38
Hey Lindon, you don't need to worry about terms and conditions or info on how it works, my 'intelligent' electric toothbrush can vouch for Tiger's AI bot.
Hi Tiger, does that mean I’ll have to pay £1million up front before being able to access all the terms and conditions and info on how it works - that would enable me to participate in the AI scheme?
Can you post the link to your schemes application form please?
Tiger - so your quoting numbers based in dollars and therefore I assume your US based? How come your trading BMN when your US based, not enough US stocks out there to trade...?
AI talk sounds like BS by the way, but you do you.
Tiger, your AI just appears to pick shares at a 12m low and hopes for the best, hardly much intelligence in that! But I'm sure you'll have a queue of people lining up around the block to pay your $1m fees! Or maybe not, do let us know when you get your first one won't you.
So the big buys yesterday were you Tiger ?
Q5: In the event of such administration proceedings as mooted, what would be the status of SPR’s US$12.5m loan? Would SPR be treated, under those circumstances as a debt provider or an equity holder? If SPR enjoyed the rights of a shareholder in a shareholder vote, why would they be treated as a debt provider, albeit unsecured and interest free, with better scope than shareholders of recovering their investment from administration proceedings. Conversely, if SPR is treated as a debt provider, why would they have the right of a vote at a shareholders’ meeting.
A: SPR has the right to be treated as an equity holder in relation to their equity and a debt holder in relation to their debt. This is a well-established principle of law. SPR’s right to vote is not tied to payment receipt, but rather to the issue of shares. This means that SPR will be treated as an equity investor in relation to the shares, and as a debt provider in relation to the US$12.5 million, which remains an unsecured, interest-free non-refundable loan until South African Reserve Bank approval is in place, at which point those funds will be applied against their subscription. [SPR has also advanced other loan funds to the Company, these funds are secured against Vanchem, as announced
Portillion Response
As requested above, please confirm if all those viable funding options include a sale of the company (Bushveld Minerals). To the extent the company has received such offers, would you elaborate on the timing and terms and why the board considered such an offer unfit to be put to shareholders.
Portillion Response
The question relates specifically to the US$12.5m loan to be applied to the subscription once South African Reserve Bank approval has been obtained. To treat such a loan as debt while allowing SPR voting rights as an equity holder with shares that are yet to be paid for is prejudicial to other shareholders of the company, not to mention a breach of the company’s articles, AIM Rules and South African regulations.
Portillion Response
As requested above, please confirm if all those viable funding options include a sale of the company (Bushveld Minerals). To the extent the company has received such offers, would you elaborate on the timing and terms and why the board considered such an offer unfit to be put to shareholders.
Q4: If the shareholders vote against the proposed transaction, the board has indicated that they may have to suspend operations, which Portillion understands to mean filing for administration. To this the following questions are asked: (i) What other options have been considered by the board? (ii) Has the board considered either putting the business for sale or has the board received any approaches for the company from third parties that would offer shareholders some value.
A: See the answer to question 1. In addition, as mentioned in the Company’s recent announcement, the Company has explored all viable funding options, including the sale of the energy and coal assets. The Company has also considered the issuance of further equity; however, as a result of the Company's share price trading below par value and limited shareholder support, this was not a viable option, given the immediate need for funding. Lastly, the Board has already given consideration to business rescue for the group’s operating entities in South Africa; business rescue would only be an option if sufficient funding is available to keep the operations running. Without sufficient “post- business rescue” funding, liquidation will be the most likely course of action, should the proposed SPR transaction not proceed Without a viable alternative.
Q3: If SPR is permitted to vote during the upcoming shareholders’ meeting, they would exercise the vote as the single largest shareholder (in a company where historically less than 30% of the total shareholders typically vote), in a transaction in which they are the counterpart. This at face value is a material conflict of interest.
A: All shareholders are permitted to vote at a general meeting there is no requirement under the Company’s articles or under the AIM Rules, that the vote be limited to independent shareholders.
Portillion response:
All the more reason that all voting shareholders should vote only in respect of paid up shares
Q2: What is the voting status of SPR’s 14% shareholding during the upcoming General Meeting? SPR is yet to complete the subscription for the 14% that it is shown by the company on its website to own. The company communicated that, pending the South African Reserve Bank approval, the US$12.5m it has received from SPR is in the form of an interest free, unsecured loan and the SPR shares were issued in certificated form held by the company pending receipt of the regulatory approvals. This question is raised on two accounts: (i) If SPR is permitted to vote during the upcoming shareholders’ meeting: would this not indicate completion of the subscription and would this not be in contravention of the South African foreign exchange regulations.
A: SPR would have the right to vote its shares as they have been issued notwithstanding that the payment for the subscription has not yet crystalised and the equivalent amount has been advanced to the Company currently in the form of a loan. The Company has taken legal advice, and there is nothing contravening the South African foreign exchange regulations and nor is there anything preventing SPR voting. SPR's right to vote is not tied to payment being received but to the shares being issued.
Portillion response:
1. It is our understanding that the Company should not have issued shares to SPR before payment for those shares has been received and that the subsequent payment by SPR which is treated as a loan cannot be applied to the subscription prior to the company receiving approval by the South African Reserve Bank. This would be consistent with the company not issuing shares to Acacia for its subscription for shares that it has yet to pay for.
2. We believe that these shares could not have been issued without a breach of the company’s articles, the corporate laws of Guernsey and of the South African Reserve Bank regulations.
13. Q&A
In order to assist Shareholders, the Company has prepared a “Frequently Asked Questions”
document, dealing with questions regarding the Proposals that Shareholders may have for the
Company. An announcement as to where this can be located will be announced separately.
Has anyone seen this yet ?
Started: Diomodlover1, 15 May 2024 19:13
Last post: faramog, 16 May 2024 13:53
Blimey @DL1 .. thought you were joking ... 50k shares at £250 at 0903) ... LOL
And someone just bought 1.65m shares !
I quit smoking 3 weeks ago, saved 250 of money, will buy 50000 BMN shares tomorrow.
If BMN does not make me wealthy, will make me healthier
😆😆😆
Nice evening everyone
Started: wildtiger, 16 May 2024 10:55
Last post: BenAlder, 16 May 2024 13:39
Apart from a possible bounce on the completion of this deal, there is no reason to buy or hold this stock while V prices are loss making. BMN is in a death spiral with low V prices and its $95M debt, and only Vametco to service that debt . Even if it survives to the good times, the BOD will sell us out cheaply to an insulting offer.
AIM is like a casino, and the longer you're in it, the more you lose.
I have to agree with the "saving you from yourself" bit there. I don't think anyone I've ever spoken to on this site has actually made money from investing in shares and can't really see this recovering. 2 of the other shares I previously held have both delisted from LSE, just going to stick it in an index tracker now
Did you spell that right tiger? Missed a 't'.
Mcap still £11M so I don't think the SP is at the bottom yet. I'd wait......
Our AI tool found new bullish info, short term target is 2p
Started: Lindon, 16 May 2024 13:03
Last post: Lindon, 16 May 2024 13:03
Battery storage compound refused over 'toxic gas explosion' fears.
COUNCILLORS have refused plans for a massive battery storage compound in the Thornbury area amid fears of “toxic gas plumes in a lithium explosion” near homes.
But the fate of the proposed energy plant now lies in the hands of a more senior South Gloucestershire Council planning committee because the decision went against officers’ advice to approve.
The 200-megawatt facility at Earthcott Green Farm, near Alveston, would store energy produced by renewable sources such as solar for when it is needed most during peak hours in the evening and could power 500,000 homes for two hours during an outage on the National Grid, preventing a blackout.
Https://www.gazetteseries.co.uk/news/24320909.battery-storage-compound-refused-toxic-gas-explosion-fears/
Started: Lindon, 16 May 2024 12:59
Last post: Lindon, 16 May 2024 12:59
alan patrick ryan’s post
mining for facts, llc; intherightvein.com
15h
fev prices remain steady
ferrovanadium prices in europe are steady on either side of $27. the two-tiered market persists in the us, with fev produced from russian **** selling at $12.50 per lb and fev that cannot be traced back to russia selling at no less than $13.
two us tenders—one for 2 tons and one for 12,000 lb—were awarded at $13.20 and $13 but the consumers specified that the fev could not be produced from russian feedstock.
calls to verify whether protesters at rhovan were continuing to block the roads were not returned. there have been no further news reports as to whether protesters have met with glencore to discuss grievances about community services and the outsourcing of jobs.
bushveld ‘s shareholders will vote at the end of the month about whether to accept a rescue plan whereby southern point resources (spr) will purchase 100% of the vanchem vanadium operation for up to $40.6-million. short of cash, bushveld’s shareholders have no option other than to accept the proposal or go bust.
Started: Lindon, 16 May 2024 12:49
Last post: Lindon, 16 May 2024 12:49
Sattar
@kamsattar
I have today emailed my complaint to aimregulation@londonstockexchange.com against Bushveld Minerals and the Nomad SP Angel with my view based on the company’s articles and my question 2 in the new response to Bushveld that SPR shares should not be used for voting.
https://x.com/kamsattar/status/1791015376983031927?t=BZiH8kpXWNqwJ7wlNzwy5g&s=35
Started: superzero8, 16 May 2024 11:50
Last post: superzero8, 16 May 2024 11:50
Started: Ambiorix, 16 May 2024 10:31
Last post: HarChris, 16 May 2024 10:56
There’s hardly any info in the public domain re Glecore’s Rhovan vanadium operations but I think a lot of it goes to Europe.
Our neighbours are having protests since the start of the month, they announced they would stop operations for 2 weeks yesterday. Anyone knows the market Glencore sells to?
https://www.msn.com/en-za/news/other/the-jobs-emergency-brits-vanadium-mine-shut-down-for-two-weeks/ar-BB1mq8yg
https://www.msn.com/en-za/news/other/the-jobs-emergency-brits-vanadium-mine-shut-down-for-two-weeks/ar-BB1mq8yg
Started: Uksteveg, 16 May 2024 06:22
Last post: tekanalyst, 16 May 2024 10:17
It is in black an white in the company's articles of incorporation:-
"No member shall be entitled to vote at any general meeting, either personally or by proxy, or to exercise any privilege as a member, unless all calls or other sums presently payable by him in respect of shares have been paid."
SPR have not paid for the shares that they should have under the Nov 2023 final agreement, loaning us the money does not qualify. Hence SPR are not entitled to vote.
Oh yes it is ..... but have whatever view you want.. won't change facts that pretty much its likely all lost .. the games with SPR (who are now the biggest shareholder despite ponying up a relatively small sum) and having a vote when formally the payment is still just a w/c loan just stinks
BMN don't have much choice because of their financial position, not because they have a gun to their head.
So it's not hostile.
Yes .. we are getting royally shafted !
I agree. SPR delayed payment, causing lost production and further distress, then loaned the money rather than paying correctly as per contract, resulting in them apparently holding a large voting share for a vote they benefit greatly from, whilst also (seemingly) being treated as a debt provider in the event the vote fails or the company goes under. Sure feels like someone is getting screwed or the response is not clear.
Last post: HarChris, 16 May 2024 08:54
Https://www.businesswire.com/news/home/20240515289077/en/Largo-Reports-First-Quarter-2024-Financial-Results-Cost-Reduction-Measures-and-Productivity-Initiatives-Underway
Perfect example of what I've been saying about FM and the precarious position he left Craig in. Largo took a more pragmatic and lower debt approach over the past three years and so despite failing to grow their vanadium operation they continue to manage this difficult V downturn with relative ease. They also built a new, differentiated revenue stream (ilmenite) rather than going all in on vanadium.
$13m loss for the quarter yet still, 9 months through low prices they have a cash to debt position that BMN can only envy. Yes growing pains are showing and will become major sores if V doesn't improve for another 9 months or so but when your main business is mining a highly volatile commodity this is the sort of thing you are meant to be prepared for, a 12-18 month downturn, not leave yourself in a position that causes distress the moment the commodity price turns south.
Started: Ambiorix, 15 May 2024 16:41
Last post: Ambiorix, 15 May 2024 16:41
Started: wakeyinvestor, 14 May 2024 16:22
Last post: faramog, 15 May 2024 12:59
Anyone thinking we the PI's would end up with anything at all from administration ... I have London Bridge to sell you !
It absolutely was Fortune that did all that but it was also Fortune that took on massive debt and failed to build the company with that funding and left BMN vulnerable to predators like SPR ever since. The board moved to install Craig before it was too late but there was always going to a bit of luck on his side needed to and he's had none of it - V sinking ever since his appointment and nefarious entities taking advantage of BMNs precarious position since.
You call it 'happy', I call it the best of some very bad options. I firmly believe that rejecting this will lead to shareholders getting zilch rather than very little and by my maths very little is greater than 0.
You say 'SPR is not the only way out' but i'd love you to share the other options that are on the table as you must have been in those discussions? The real truth is likely that all the other predators were quite happy to wait for BMN to enter administration before poring over the remains.
Harchris, the shareprice erosion happened years before. It happens continuously on AIM if you had not noticed. This is because the market makers can play private investors for fools and simply sell shares short. For the record when BMN listed over a decade ago it had nothing, zilch, nada, and was a putative iron ore company. It was Fortune that turned it into a Vanadium business, connected up the dots with the Flowbattery people and got us to the position of owning 50% of the world's Vanadium plants outside of China.
Now you're happy for SPR to walk away with a good chunk of this at around 20% of the rebuild value, with no more cash to keep the business operating.
FM had a clean slate following covid, a debt free balance sheet in which to grow the business with 3 years to get it right from there and with V around $40/kgV for nearly half of it (including significant post outbreak of war in Ukraine spike) but instead left after those three years with no growth, an electrolyte plant with no orders and the business with $3.7m cash and $94.4m debt.
Absolute nonsense, the share price erosion started when Craig was left to deliver the interim results in which Fortune had fully presided over. It was in those results that it was revealed that BMN under Fortune was still haemorrhaging cash with averaging close to $40/kgV. The fall out of that period left the share price at about 1.5p, so at least start from there.
As for FM, anyone that thinks a founder that lists a company at 20p and leaves over a decade later at 90% down has been a success is struggling with cognitive dissonance.
Started: wildtiger, 15 May 2024 08:35
Last post: faramog, 15 May 2024 10:10
Very brave ....
Just down to Vametco, the company can make a decent profit. Given CC's clear capability in reducing costs and lets remember the Vanchem cost reductions were in no small part down to Vametco staff going in (is that sustainable).
But survival, in any mode, requires Vanadium prices to rise and rise significantly ... can bleat about past management failures, chasing rainbows and debt, but that would not ultimately change the fact that current sales are below production pricing. That is not sustainable and would be the same for any other setup.
This absolutely terrible deal just rolls the dice and keeps the lights on a bit longer to see if vanadium pricing changes in time
Very confident I will make the similar gains here with BMN. Good luck to all
Cashed out my Gamestop yesterday with a juicy 300% gain, thanks to our AI tools
I love it when 95% of the retail investors have given up on a stock, thats when I usually buy heavily
This kind of short term drops doesnt bother me, let's see where this will be by December and next year
Started: V1per, 15 May 2024 09:27
Last post: V1per, 15 May 2024 09:27
On the bright side Mikhail continues to like and post articles on LinkedIn. Nice to see him working hard to earn his salary
Started: pb940, 13 May 2024 07:03
Last post: HarChris, 14 May 2024 11:46
They burn cash either way, don't think downing tools and going into administration would just freeze things as they are. They owe interest on $105m of debt, staff at the plants will need to be kept on a retainer or otherwise the whole operation would take too much time and money to ramp back up again, the long overdue creditors would need to be paid, some modest maintenance work would need to be undertaken etc etc
Then there's this: ''Additionally, the Company is in discussions with Orion pursuant to which Orion has indicated, on a non-binding basis, that it will, subject to certain conditions (including completion of the Vanchem Disposal), provide further funding to the Group by matching the additional funds paid by SPR on a $ for $ basis up to a maximum of US$10 million. Further details are set out on paragraph 5 of this letter.''
Their major creditors ^^^ don't seem to think just eroding away in administration is the best chance of ever seeing their capital either.
If they limp on 'operating', they are still losing money on every V/kg they produce.
The question that some seem to be asking or at least want explained by Craig is 'how does administration compare with this deal?' - Craig has stated/ implied numerous times in IMCs that administration would in most cases by the worst case scenario but has never specifically answered the above question.
That is totally wrong, at least when you compare what BMN looks like without it and what it looks like with it
Scenario 1 - no deal agreed. BMN is out of cash now and likely have halted operations already, especially as many creditors have balances that are 'long overdue' at Vanchem.
Scenario 2 - Deal. As part of the agreement $3m was received as an advance on May 3rd, a further $5m will be received at the end of May and a further $5m-$8m will be loaned as an advance to Vanchem to pay long overdue creditors and therefore keep the plant in operation - loans that BMN won't have to payback as part of this deal.
i think most would agree that there's a tangible difference between not operating and operating, even if the latter will lead to the former in time, minus 50% Vanchem, if V doesn't recover.
What seems to have been missed by those that think that there is no option but to accept this shoddy deal is that it does not add any upfront cash to the original 50% deal. Thus it does nothing to shore up the company, but gives away another 50% of Vanchem on the hope that SPR will pay out, when it has not even done so properly over the last 6 months.
Started: shamI89, 13 May 2024 14:32
Last post: shamI89, 13 May 2024 14:32
Fortune our master "dealmaker" is behind SPR entity, what a master stroke by him.This company is bankrupt but have bought few more months.
Started: aisee, 13 May 2024 13:55
Last post: aisee, 13 May 2024 13:55
I only have 100k of shares now, sold out previously at a loss. I just wondered how many of us would have remained invested if the company had remained a producer for steel only, rather than what turned out to be a pipe dream the battery side of the business.
It also struck me as strange that with the share price tanking no other business saw enough value in the company to put in an offer.
With regard to spr I do wonder whether we have just been played in order for them to profit on the cheap.
The directors themselves have not exactly demonstrated confidence in the company with their share purchases.
Alas the future of the company would still appear to be extremely fragile. From my own viewpoint I would rather suffer the further loss than see spr take control of vanchem.
I understand that the majority of lth’s will think otherwise.
Whatever you decide I wish you all better rewards in the future.
Regards
Aisee
Started: Lindon, 13 May 2024 12:38
Last post: Lindon, 13 May 2024 12:38