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Yet the price/demand has crashed and yet to reverse. The US steel mills have been pretty busy over the last couple of years. Europe has and is still very subdued. China is supposed to be increasing production again, but not its property sector - its greatest consumer, and is being threatened with tariffs/sanctions in the West, because it is getting cheap oil/gas from Russia to make its steel. So may not reach previous production levels again. China has a lot of problems and may never recover that capacity. How quick will India/Europe/ROW fill the vacuum and what state will BMN be in by the time $40 kg/V comes back? I agree it will happen, but time is ticking and patient is on life-support. You are a dreamer if you are not worried.
Yes @Marc... but the question is can Bushy hold on long enough for a recovery ?
0.69 to buy atm
What the doomsters on here dont seem to want to acknowledge is that whilst yes, China has driven the prices of V, going forward demand for steel will come from other developing countries like India.
I lol at the idea that just because China's taken a hit that global demand for V falls off a cliff, nah, sorry dont buy that.
You are right but we agree demand increased and so did price.But at this level company is losing money on production.
As always you like to twist the truth to point score.
In Q1 2023 with V above $40/kgV the outlook was very bright. As V tanked and the true state of operations under Fortune was revealed I, consistent with that, become less positive. I have never argued this is a brilliant investment since, despite holding on to many of my shares which are now on a 90% loss.
This is AIM, something said now won't necessarily hold true in another eighteen months time.
@Harchris
Talk about stating the obvious.
Give it a rest for a bit.
Not that long ago your fantasy world accounting was going to pay off Orion in one hit.
Cinder is right. A load of buildings fell down in an earthquake. Again.
Quote from Tavi "The current scenario is setting the stage for what is likely to become one of the longest commodity bull markets in history."
https://x.com/TaviCosta/status/1777378865909813480
"It was construction boom in china due to which vanadium hit 130 level."
No it wasn't, it was the central government's decision to enforce increased rebar standards to cut down on the use of low-quality steel.
But that sort of money tends to flow into Gold and recently a lot has gone into cryptocurrency.It was construction boom in china due to which vanadium hit 130 level.What transpired afterwards is a different story and nobody knows where it will end.Demand was expected to increase after covid but that did not happen.
"Why don't you see Vanadium price recovering?"
You can't be this stupid. Historically, the construction industry in China drives vanadium prices and yet China is currently undergoing the worst property crisis in three decades with massive property developers going bust. That's why the vanadium price is dismal and there is no sign of recovery with house prices now dropping for eight consecutive months due to oversupply.
What other factors will see a reversal in the V price? VRFBs? No. China has plenty of its own now that the demand is not there for steel and can further import cheaply from Russia.
When the global economy struggles, what to they then do? Yes, they print the money. They've been holding everything up with programmes like the US infrastructure bill. Their playbook is to kick the can down the road. Can't see them having the appetite to do anything different. BMN just need to get through the short term. Currency debasement will lead to a rush to hard assets which BMN could benefit from.
This isn't just about whether or not BMN can survive but in what form that comes...The last time a cash call was signalled the share price was about 3p, this time around it's 0.6p so it's obviously going to come at a heavy price.
We don't know what the future holds for the vanadium price but we can definitely say that it's not going to come to our rescue in the very short term, which is what is most needed at the moment.
Trying to decide whether to take my 80% loss and funnell the remains into IES, what further upside do i see at this point. im struggling to quantify personally, will let people know my decision over the next day or so. its very hard and the biggest lost i have had to weigh up absorbing.
These"definitive statements" I am making are based on RNS.We had an update according to which if they dont get no money then they will need to suspend operations.As far as price of vanadium is concerned it was construction boom in china that drove the price up in 2016 and right now gobal economy is struggling.Company is shot of funds and would need to raise money soon in my opinion.
Lamps, the status quo is that vanadium pricing is significantly below the all in cost of production. Unless someone can prove that there are reasons to expect an increase in pricing, then the market will assume current pricing will continue. That's the crux of the matter.
Thank you clark - surly it's not the same loony all those years ago?
I've filtered him now anyway
Sham - you are making definitive statements with no qualification or reasoning. Why don't you see Vanadium price recovering? How do you know that production `will' be stopped'. Debt repayments are geared aren't they? I think the basic problem is that the company has short term cash flow problem due to circumstances beyond their control. Let's see what Craig C. has to say on Monday. Hopefully he has figured out a solution.
Someone must have reported my post Ray for some absurd reason, anyone I see that you have had a visitor. Good luck with your investments Ray and yes Pdub was a gentleman
Problem is they cant keep on deferring it forever and besides that money will need to raise money for working capital as well.Now look at full picture they are not making money at current levels , have massive debt to pay and production will be stopped soon.If Vanadium prices dont increase company is in big trouble and I cant see that happening.
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?