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"Unusual sales tactics to say the least!"
Building relationships?
Daisydog - the fact that Evraz sold Nitrovan at effectively the same price per V-atom as FeV was told to me by someone very high up in Vametco manufacturing. This was because at the time Evraz also sold FeV from their Highveld operation - furthermore when they were doing this they were sweetening the ore mined at Vametco with V-sla-g taken from Highveld and so were not bothered about getting Vametco to run purely on its own ore.
The fact that Bushveld HAVE managed to get Vametco to run on its own ore alone is a testament to their skill.
Interesting point BG. And I also didn't understand someone saying Evraz priced them the same to avoid excess demand for Nitrovan. Unusual sales tactics to say the least!
@Bassguy..although we know Nitrovan attracts a small premium, all we are told is this.
"The vanadium price is based on the FeV mid average price for the period, published by LMB for sales to Europe, CRU Ryan's Note ("CRU RN") for sales to the United States and Asian Metals for sales to Asia. Vametco realised price is based on the prior month's mid average price."
This has always puzzled me re Nitrovan?
From the q4 ....where is the premium as our average selling price was below the indexes???
Average selling price
US$/kgV
22.2
23.4
-
-52.0%
-
Average LMB vanadium price4
US$/kgV
24.4
25.0
0.9%
-39.9%
5.8%
Average CRU RN vanadium price4
US$/kgV
23.2
23.8
6.2%
-60.0%
-17.0%
@raffym.. I know Nitrovan is not unique, Vametco produce a Nitrovan 12 and a Nitrovan 16, which is the equivalent to the VN 14 produced in China.
The point I was trying to make is how much more valuable and efficient is say 4100 MTV in the form of Nitrovan.
I'll add Vanchem produces other V products now
Hi Harchris
You are correct about V2O5 quotes and BBN is super-intelligent so can work the FeV price based on that. V205 has 56% contained Vanadium and I believe Dollar/Yuan fluctuations play a rolein calculations.
Anyhow I'm glad you mentioned this as I went back to what BBN posted on the 16th June. This shows vanadium nitride has increased around 7000-10,000 CNY/Tonne in less than a week in some trades. Vanadium nitrides is what this company sells and ignoring the bare figures that is a 4-5% rise in a number of days.
https://twitter.com/BigBiteNow/status/1405109154700795908?s=20
All an opinion until those more vanadium savvy agree.
@raffym: Of course there are other sources of Vanadium Nitrate but serious competitors no. Over 75,500 kgs in one delivery to Baltimore last Thursday. Try getting a quote for that quantity on your links or some of the Chinese sites.
Loudspeaker - Some Nitrovan competitors:-
https://bit.ly/2Ha1shj
https://bit.ly/2Uv1L9w
Loudspeaker - Nitrovan is not unique and has to remain competitive so it's premium is not likely to increase. Nitrovan is Bushveld Minerals registered trademark for it's Vanadium Nitride product/composition - many other competitors produce Vanadium Nitride to similar compositions particularly in China.
HaleSpur, 191000 CNY/t??? I'm pretty sure BBN was quoting 136,000 CNY/t very recently and was converting that to $42.5/kg. Am I missing something?
Site visit to Vametco 2019.... Nitrovan. v. ferro-vanadium..... What is the price difference?
Finally, and in conclusion to this article, we are now able to answer a question that has long been discussed within our community;
'Why does Nitrovan® currently only receive a relatively small premium of 5-10% compared with FerroVanadium, despite being some 40% more effective?'
Surprisingly, it appears that previous plant owners Evraz, had deliberately chosen to price Nitrovan® and Ferrovanadium, (which they also produced at a number of other locations), at identical prices. It is suggested that this was perhaps to avoid undue extra demand for the better quality Nitrovan®.
As the world's appetite for safe construction and higher quality steel rebar increases and steelmakers discover they improve efficiency and reduce costs with Nitrovan® we should expect premiums to increase. It can be hypothesised that an extended period of high Vanadium prices may naturally accelerate a deepening market reappreciation of Nitrovan®.
https://www.thebushveldperspective.com/blog/public-articles-1/post/vametco-processing-plant-visit-408
Yep Alfacomp back from sunny Centreparcs like a thousand other people it seem. Anyhow things are tightening up and just found this from today. BBN might be on holiday and usually loves a quote from ferroalloy.net but I'll take over today :)
VN Alloy Offer Price Reaches 191,000 CNY/TON At The Beginning Of Week
www.ferroalloynet.com:Today, major large scale manufacturers adjust their quotations firstly. The price of VN alloy is 195,000 CNY/Ton. The market is bullish, and the quotations of VN plants are adjusted accordingly. At present, many manufacturers said that V2O5 flake prices are high and it is difficult to purchase. Some manufacturers said that V2O5 flake is not easy to replenish stocks and suspend quotations.
At present, a small amount of VN plants offer cash of 190,000-193,000 CNY/Ton, and the VN retail market transaction price is 188,000-190,000 CNY/Ton in cash. However, at this transaction price, the market factories are unwilling to ship and keep hesitant. Traders are willing to purchase and the acceptance price gradually rises, but the market has few low-priced VN sources, and there are not many spot resources, so the actual transaction volume is relatively ordinary, and the market is mostly waiting the steel mills bidding this week.
www.ferroalloynet.com
As frustrating as the share price is I find it rather easy not to be tempted into selling when the fundamentals continue to strengthen in the background. No idea when it will happen but it's a when not if right now.
Totally agree with everything you wrote there Pdub. I still feel we have been unfairly punished with covid and not recovered to anywhere near the level we should have done when compared to our peers. I am expecting a rerate to double our current share price at some point when others cotton on to how criminally undervalued we are. All my opinion but once the wider market sees the numbers which we believe are beginning to manifest behind the scenes, the sp can no longer sit at this ridiculously low figure.
Just a thought but the last time Vanadium price was approx $42 kgV the share price was in the range 25 / 30p (April / May 2019). Today less than 16p.
In April 2019 BMN did not own Vanchem. Total group production was 649 mtV in Q1 (similar to the previous Q). In Q1 2021 group production was 688 mtV, despite the 35 day Vametco maintenance closure, so slightly higher than 2019.
Looking ahead at Q2 results BMN must be expecting close to 1000 mtV production (based upon a target for the year of 4000+ mtV). In 2019 production was 742 mtV, they sold just 607 mtV and the average V price was $39.4 kgV. So it would appear that in Q2 2021 group production will be much higher than Q2 2019, as will be sales, and the V price by end of the Q will also be higher.
The share price in 2019, following release of Q2 Update (31 July 2019), was 23p and the V price was $32 and falling. With Vanadium prices higher today and rising, and group production significantly higher it would not be unreasonable to expect a significant upward shift in share price by the time Q2 Update is released.
Obviously production costs and any dilution have to be considered but it all points to BMN being significantly undervalued and with rising V price, revenue and profitability the future is once again looking rather exciting for BMN shareholders.
Of course this is just my opinion. Others may disagree. However the numbers at very least are interesting.
Apologies if there are errors in numbers. I have tried to be as accurate as possible and used RNSs and the Bushveld Perspective as sources.
China. FeV 80% $42. per kg
Europe.FeV 80% $42.75 per kg
US.FeV 80% $42.75.per kg.
European V205 $8.80. per lb.