We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Looking increasingly likely that all that electricity simply made you over excitable.
True Lib, there’s definitely a lot of future potential here.
I was only looking to see if the Q2 results were in yet as I’m looking to take a chunk of profits from EUA and put some more in here next month. I only looked through the financials randomly but had never compared the interim and full year when the full year had come out. Baffled me seeing the Operational Profit had reduced and it not being attributable to Vanchem. Had me second guessing myself whether or not to top-up.
I agree the Eskom tenders should make a huge difference later down the line. There’s going to be some big money on the table there.
And it's a Thursday!
Because I got struck by lightening last night and my spidey senses are on overdrive today!!
What makes you so sure today is the day? Hope you're right though!
well most of us anyway :-)
And finally, as a reminder, let's not forget that this price is completely bogus. Every other vanadium company is doing really well (look at IES, look at Largo, etc). You've got companies deliberately putting the word 'Vanadium' in their name in order to do better on their respective stock markets. Etc.
And yet somehow Bushveld, the best vanadium producer in the world (super high quality vanadium with incredibly low production costs, already producing 3% of the world's vanadium, and ramping up production massively over the next few years), is still languishing far off it's pre-covid level ... which was already too low!
You've then got incredibly exciting Eskom tenders which are officially happening in the next few weeks.
You've then got to factor in how vanadium demand and prices will sky rocket in the years to come. The revolution has already begun, with VRFBs being built in China, Saudi Arabia, Japan, Korea, S. Africa, and more countries. This is before all the billions of pounds of government stimulus money helps boost the green energy industry.
You've then also got to factor in how we've got a genius CEO who seems to be in the right place at the right time repeatedly, negotiating the most incredibly deals time and time again.
So it's clear to me that this sp is complete and utter nonsense.
.. and that's why it's such an amazing buying opportunity at these levels!
I've just sold 2000 DLG shares and I will making a top-up here imminently : )
and if im hearing whats true we should be happy
Q2 results mate!
Whats happening today Gambit! Have I missed something?
Ah I don't mind people discussion re the financial figures.
It's just of limited value when Bushveld is still very much in growth mode. I mean god have you seen how many companies in growth mode are completely loss-making year after year, and they still trade at much higher valuations than BMN does.
Also feel that Bushveld turning super profitable as dramatically as they did should not be used against them now.
Lastly it's worth emphasising that the share price doesn't ever seem to have been influenced by the revenues etc, instead the main driver of the sp has been the commodity price of vanadium. It's an overly simplistic way to value Bushveld (I've always thought this) but that's broadly how it's been so far.
...up until the recent nonsense where we've failed to recover from where we were pre-Covid!
Go have a look in the published account details.... Answers should be there. The bottom line number is just that and it is how that is arrived at.
Another treading water day it seems.... Will check in tonight most likely after another fun day at the airfield
im still struggling as to why you didnt bring this up a month ago when it was fully discussed and today of all days hmmm????
Fair point actually, operating profit isn't meant to take acquisition costs into account.
Having said that, this would've partially been as a result of Bushveld not selling towards the very bottom of the cycle since they anticipated a recovery in 2020 which has materialised. This would have had an impact because it obviously costs to mine and process the vanadium. So by stockpiling / not selling it on during the financial period it would've impacted the 2019 figures ... and boosted the 2020 H1 figures. A wise move that's easy to miss.
And yes the Vanchem acquisition is massively significant. We needed it in order to ramp up production in order to fulfil the needs of these Eskom contracts which will be hugely lucrative.
Furthermore the more that we produce the lower the production costs (due to economies of scale) to a level that's even lower than our already very low level. Which will improve profitability in itself.
... before you even take into account V prices rising since and expected to explode in the years to come!
Basically the Vanchem acquisition was a master stroke and something that we haven't seen the full benefit of yet. Not even close.
Thanks Lib,
I still struggling to make sense of the figures. I’d presumed it was down to Vanchem as £30m was paid in cash, but the cash in H1 was $66m and full year it was $33m, suggesting it was cash reserves used in the sale, meaning the only alteration is in the current and non-current assets, so shouldn’t have anything to do with the operating costs. Plus purchase is shown as a gain further down the statement so surely wouldn’t be shown as a profit and a loss?
To me it genuinely appears to as though we made a loss in Q2, which is why there’s such a big deficit from H2 to full year. The positive is now that we actually have Vanchem, presumably that will bring some decent profits in.
The acquisition cost of Vanchem will not show as an operating loss, this will be on the balance sheet as an investment
Bushveld did make a loss in H2 spending something like $47m in cash (excl CLNs) in order to acquire Vanchem, and stakes in both Invinity (IES) and Enerox; and also in other small ways (such as a $1m payment preparing for the JSE listing).
At the same time V prices collapsed down to $20-22kgV so yeah the H2 figures don't look good to be honest.
But that's not a fair way to value the company. Since then V prices have risen somewhat, production has increased significantly despite covid, and obviously we are on the cusp of these Eskom tenders which will be worth a fortune! (Project A of Phase 1 alone is worth $415m for instance)
Hope this helps
I believe that even at a V price of $20/kg the company will break even after production and overheads, so we didn't make a loss in H2. We used cash from H1 to fund a large chunk of the Vanchem purchase, hence the drop in free cash in the accounts.
We made some payments from cash in H2 for acquisitions, sorry not got the figures to hand but they are there in RNS’s and FYE docs. Vanadium price also a lot lower in H2. The Q2 numbers should have been out by now. Unclear why they are not.
Vanchem payment
I was just looking through the RNS’s wondering when our Q2 update was likely to drop and then just had a skim through the accounts, comparing last years interim with the full year.
I didn’t notice when the full year results first came out but for H1 last year we posted an operating profit of £37,545,814, then the full year results show only £22,253,811.
Am I reading this correct in that thinking we effectively made a loss of circa £15m during Q2 last year?
I’ve been trying to get my head around the low share price for a while now but if I am right with the above, that would explain it.