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The IDC is a not for profit organisation Pdub so one would expect them to provide cheaper finance when they approve their funding projects.
A bit like a housing association which may offer a tenant cheaper rent but won't necessarily give them a property to live in.
As things currently stand from memory the IDC has taken a 45% equity stake in BELCO as consideration for part financing the electrolyte plant.
If BMN want 100% of the electrolyte profits in due course one would expect they would need to buy out the IDC, presumably at market value or maybe slightly less if the IDC receive the principal sums borrowed plus interest.
That's how I see it.
USD/ZAR exchange rate is now at 15.0 and is thus helping to reduce costs.
DD there is some logic to your answer.
However that ‘sweet spot’ price encourages the development of the energy storage industry. So in that sense you are wrong. As we have seen before if V price is too high then that restricts the VRFB industry. That sweet spot therefore makes supplying steel industry very profitable but also provides a price environment that enables VRFB manufacturers etc to flourish.
For BMN longterm shareholders we want both sides of the business to do well.
LB21 I’m not sure that you are correct. I think I read somewhere that the IDC don’t work like that. They will move on eventually to support another industry or company. Not geared up to share profits etc as business partner. Happy to be corrected. May be a matter of simply paying them back.
If correct then expect profits go to BE. No doubt this is an oversimplification but I think basically accurate.
Profits on electrolyte manufacturing will be split with the IDC so I don't see that being a big money spinner.
We'll make more on leasing vanadium assuming there is sufficient uptake.
Once both operations are producing at below $20 kg/FeV, investors will be quids in whichever way the cycle goes.
The big money will be made when the electrolyte plant is selling electrolyte at a large premium to what they currently sell vanadium products for. I suspect Cellcube will be in a growth phase for years so will not make BMN money directly but as it gains value so should the SP. Unfortunately this is not a short term play and therefore the balance sheet will not reflect anything exciting for a year or two.
Another way to improve sentiment will be to give more information on the self-generation plan and work on progressing this. Not only will this save money on soaring energy costs and improve reliability especially at Vanchem. It will also attract ethical investors if BMN becomes the first mining/producer operation to become environmentally friendly.
''Moreover, Bushveld Energy will devise self-generation options for all of Bushveld's existing and future electrical energy needs at its operations. With current aggregate loads of 21MW that are expected to increase to over 50MW post completion of expansion and refurbishment programmes, this need has the potential of more than 125MW of solar PV and 180MWh of battery energy storage systems within our facilities.''
Thankyou for this. Its nice to read some productive comments. Keep up the good work everyone.
Have a good day.
Cant argue with that logic DD - but i really dont think the case for much longer. VRFBs are becoming more and more mainstream by the day. Granted we are unlikely to be able to fill electrolyte orders until the East London plant is built, but thats in full swing now. You may say more Jam tomorrow stuff, but that's really not the case either. The plant IS being built. we DO have a decent stake in Enerox which will give us priority to sell electrolyte. So it's tangible stuff, albeit most likely still a year or so away.
Mogwhy. Yes, Fortune did say that. But I assume he meant it to reflect BMN developing both the mining side and vanadium for battery use. As we still seem to have no tangible progress on the latter, we are still just a junior miner. In that scenario higher V prices are better for us I might argue.
investing.com has now updated it's US price.
Average price for Q3 was $38.2 in the US and $42.6 across the 3 main markets, so we're in the price range of between $40-$45 that Fortune called the sweet spot.
Paludina has told us of the recent high levels of exports of BMN vanadium to the USA.
That's no coincidence as BMN realise a price based on a 1 month lag, so the realised price has coincided with the recent price highs before the latest downturn.
@Pdub: Yes, just to North America. I should have been clearer.
Thanks Paludina. And this is just shipments to USA / North America?
September estimate $11.5 million in 21 days, best since April 2019 but don't tell everyone.