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Wow, so much anger and spite in these negative post's.
Someone's been caught with their pants down..... Big time.
James it’s not you. It should be pretty obvious who I am VERY suspicious of and you should be too if you care about your BMN investment.
Pdub - “ Just because a shareholder is underwater (or has sold out because of a low share price() that is no justification for saying the BoD aren’t doing a good job. That is way too simplistic but a mistake that too many people make.”
This is a long thread, but could you confirm who are directing the above to. I have mentioned PI’s being underwater, but have not made any comments regarding the BoD?
Thanks
The only way to get BMN into Vanadium production was to acquire a brownfield site. To get two was pure genius. I believe the combined purchase cost was about $120 million and absolutely no time delay.
I seem to remember the estimated cost for a new plant at Mokopane was well over $200 million and who knows how many years from planning to commissioning. And that is if a small company like BMN good have accessed the financing, and that is very unlikely. Even if they could the debt or dilution would have been massive.
They did a great job acquiring those plants but of course like buying a second hand car, they come with maintenance / refurbishment issues. BMN are now on top of those issues and the future looks very exciting. That is why the confirmations in that RNS were so important.
Just my opinion
I think you will find that a declining share price over the last three years is not due to the experience of the CEO.
The first issue was the 2019 crash in V price. No mining company would find life easy with that financial constraint just as they are trying to expand the business.
That was closely followed by Covid, including imposed shutdown and logistics problems that exist to this day.
Expectations were high for contracts from SA Gaovernment but their dithering has again impacted on progress on the BE business.
A slower than expected take up of VRFBs globally (in part due to Covid) also forced a rethink on BMNs priorities.
The BoD cannot control any of these issues and no single issue is wholly responsible for the disappointing sp, but they all contribute.
Then of course the shorting of the share which is clear and obvious and hitting the sp hard.
What the BoD can control is their response to this very challenging business environment. In that respect they have done a great job.
They have protected their cash position by putting on hold or delaying some projects, they have financed and continued the important expansion plans and essential maintenance, they have worked hard to reduce admin costs and overheads, they responded quickly to the opportunity to acquire Vanchem, they protected their workforce from Covid, they have reviewed financing agreements eg Duferco, whilst continuing with BE developments they have publicly focussed elsewhere, etc etc.
Remember this management have taken BMN from being a small wannabe miner to an important player in the vanadium space in just a few years, and they are not standing still. They continue to expand the business.
It is pointless comparing a vanadium miner and processor with other industries. The circumstances are completely different.
Just because a shareholder is underwater (or has sold out because of a low share price() that is no justification for saying the BoD aren’t doing a good job. That is way too simplistic but a mistake that too many people make.
Just my opinion.
What are you talking about Mogwhy? That is utter rubbish. Troll by all means but try to sound less like Megamouth and nvhltd please.
Buying a brownfield site was always a worry for me. I am a lot happier that they recognised the problem early, recruited an expert and have got the finance to fix it and expand it at the same time. We are still in the middle of this upgrade. It worked out a cheaper deal than a new plant and less dilution overall, so no mismanagement here IMO.
You are starting to sound desperate. It's a bit late in the day to be complaining now, 2 years after the deal!
Those costs include the refurbishment spend for the period too, the ongoing maintenance.
By the summer most of the work will be completed and that additional cost will be less, coupled with lower costs derived by volume. If costs are not down by then I'll admit concern.
Pdub - you have conveniently neglected to mention that it was Fortunes mismanagement of the maintenance that was the cause of the operational instability in the first place. He tried to cut corners and it's come back to bite him as he admitted to in the Crux interview. As Matt put it, "growing pains".
James0309 - the total group cost per unit was $29 in 2020. I had hoped that we would get below that number in Q4 to set us up for a good 2022.
Mogwhy your response to my question is frankly quite unbelievable.
A small company BMN takes over two existing manufacturing plants with clearly legacy issues at Vametco so they put in place a major maintenance programme which is designed to correct those problems and introduce a preventative maintenance programme in order to ensure future production stability. Exactly what a good management should do, including replacing some key personnel. Then we have a period of several months of stability of production (and consistently above target) accompanied by a significant reduction in costs. Exactly what all real shareholders wanted (ie the work has been 100% successful) and you can’t even bring yourself to commend them for this. Instead a rather strange comment that they shouldn’t have been in that position. Haha you are truly unbelievable.
You failed also to mention the stable production at Vanchem and the progress being made to open Kikn 3 in 2022. This is hugely important to the future of the company yet you don’t mention it.
I believe the truth is that you don’t want to acknowledge how good this RNS is because it does not suit your agenda.
Another question for you. Have you sold all or part of your holding in BMN? I find it impossible to believe that your negativity means anything but that you are wanting a lower sp to buy back. I can’t imagine any real shareholder being so daft as to so unfairly talk down their own investment in that manner.
I have been on this bb for 8 years and have seen all sorts of trolling, deramping, trader talk and downright lies. They are not difficult to spot. Your sudden change of tune, constant negativity and refusal to seriously acknowledge a very good RNS (and I had to drag out of you any response to my question at all) screams questionable motive.
I used to think you were quite a fair poster but now you sound increasingly like those ADVFN reprobates.
I hope everyone reading this exchange will consider carefully the comments and draw their own conclusions about what to believe in your posts
Thanks BenAlder - it just seems like years that it has been dragging on.
Waiting on the finance from the same people who partnered (financed) us on the E-Plant.
It is understandable why many here are frustrated. Apart from a short term rise at the end of 2020, the SP has been in decline for almost three whole years. Essentially anyone who hasn’t traded would be underwater here if they have bought shares in those last three years.
Personally I took some good positives from the recent RNS but the cold reality is, even with V at $35/kg and production at 4,000 mtv, we are not still not profitable and most likely about breakeven. Production appears to be stable now, which is excellent , but only when we see the cost per unit being significantly driven down as volumes increase will we begin to turn a healthy profit.
V prices could move up or down or stay at this level, but to be turning a profit, we have to deliver on the production cost across the two sites.
As an aside, is anyone able to articulate (Covid aside) why it
is taking so long to get a mini grid up and running?
"One of the red flags I ignored in my original investment risk analysis was Fortunes lack of experience in running this type of operation and that has cost me 3 years of lost investment opportunities elsewhere when I could have deployed the capital to greater effect."
Just to be clear, youre saying that your own choice to ignore a risk (as you appraised it) is what has cost you. So you have caused cost to yourself by taking what you knew to be a risk? But a risk that at the time you wagered would be worthwhile and through which you would reap great rewards... But having not gained great rewards in hindsight you think you made a mistake.
If you've had to sell at a loss, then I feel for you, but it's the risk we have each taken when we clicked "buy". I wish you better luck in opportunities else where.
@ Mogwhy. Well I agree that the SP has been disappointing and stressful at times, but I have faith that the company is actually in an improved and improving position now, and only time is the variable factor here. So you have decisions to make regarding your investment here. I am fortunate enough to be able to wait a few years, and it is better here than in the bank as far as I’m concerned, but no guarantee.
Pdub - there were lots of positives in the RNS but they should not have been in the position where they had to take action to produce those positives. Preventative maintenance to produce steady predictable production is standard operating procedure in any engineering operation.
One of the red flags I ignored in my original investment risk analysis was Fortunes lack of experience in running this type of operation and that has cost me 3 years of lost investment opportunities elsewhere when I could have deployed the capital to greater effect.
Look no further than Dave Reeves at Calidus on how to run a company and treat your shareholders.
mogwhy: I have been invested since March 2018 and at this point still 40% down. Rarely post here. Cannot understand you in anyway shape or form. Over recent weeks you have totally talked your? investment down. Yes, I am disappointed with my investment. But as an NHS employee if you had not realised we are still in a Global Pandemic, nearly 2 years later. That with SA politics and corruption have not helped BMN. Yes, on production they have not fully delivered. But hopefully we have turned a corner. Why do you keep on bashing it.
Mogwhy BMN absolutely did not disappoint in the last RNS. They delivered EVERYTHING we expected of them.
Now stop ignoring my question.
BenAlder - that's a fair analysis except for the selling and buy back cheaper dig.
Investors have endured 2 years of setbacks and disappointments and now it looks as though we have several more months of waiting for Duferco to sell down again plus more industrial action.
A few months ago the vanadium price was rising and it looked as though we would have a good H2 and become cash flow positive. That's all changed in the short term with the V price downturn. It's all very well claiming to be a bottom quartile producer but BMN isn't making money at the long term V mean price. I know that will change when they get production up and costs down but that is still a year away and will be in an unknown V price environment.
BMN continually disappoints in the short term and always gives us a reason to expect great things next year, but so far it hasn't happened. After over 3 years here I'm back at just over breakeven and consider this investment as a failure.
If I was investing now for the medium term (1 to 3 years) I would consider the prospects to be outstanding just as we all did 3 years ago.
To give you a second chance Mogwhy here is my question to up you from 21 October. You claim to seek balance so go on provide it. Your recent posts are largely negative. Give us the positives:
“ What are the strengths and positives from today’s RNS?
I know your thoughts on dilution so please just answer the above question. So far you haven’t acknowledged a single positive.”
I look forward to your answer.
So Duferco may have sold all their shares. I think that they did as there was constant selling from that time. So will they sell again? I think they will, who knows, but this is worst case scenario and although a drag on the SP, it is relatively short term until SP reflects the actual performance of the company, and not a disaster as is being made out. So Mogwhy is it seems is suggesting we all sell now and buy back cheaper later, but can you guarantee that the SP won’t run away on some good news, or the fact that the valuation is so low that an II or PI’s is prepared to look a year down the line to reap a superior return based on what is happening on the ground now and not in the imagination of a fear spreading doomster with suspicious motives. Correct me if I have misinterpreted you. Your long term outlook for the company seems very short term.
Mogwhy first we have spreading fear about the very small dilution caused by Duferco CLNs ( looks like around 4% or less) but now you are trying to spread strike action rumour. You really have been wading around in the ADVFN swamp.
The fact that you can’t even get facts right in these deramps should be cause for great embarrassment and should make readers very cautious when reading your posts.
I am disappointed by your turnaround in sentiment and very suspicious of motive.
Previously I asked you what you felt was positive in the Q3 RNS and I believe you have ignored that question. That should tell everyone all they need to know.
Just my opinion
I must correct one of my previous posts which said that Duferco sold on 24th Dec. This was incorrect as I misinterpreted the TR1 as a sell statement whereas it was informing of the acquisition of the shares on admission to AIM.
As James0309 has quite rightly said, the 2m sell was on 4th Jan.
@Lindon - The original agreement announced on 23 October 2019 stated: "The holder will not be able to divest any Bushveld Minerals shares received for six months following conversion and be subject to an orderly market arrangement for the following six months."
However BMN initiated the early repayment deal in December, rather than Duferco opting to convert , with part of the early payment being made in shares of BMN. For this reason it would appear Duferco are not subject to any restrictions.
These lack of restrictions are confirmed by the fact that 2m shares were disposed of on 4th January 2021. These shares had been held for less than two weeks, as they were only acquired on 24 December 2020.