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Fantastic set of posts, Pdub. I recommended each one : )
Fortune sure knows how to deliver in a very shareholder-friendly way!
Onwards & Upwards
Good posts pdub, why don’t you repost them to get rid of some of the guff on here.
That is more like it! I agree with every opinion you stated here. Q the share rise! lol.
Part 5
Anyway I could continue but my point is that in respect of the important aspects of BMN’s operations and business, those factors that strongly influence its success, I don’t discuss the negatives because I don’t see any. I see a business that offers great opportunities for longterm investors with patience, even if my own health issues may mean that I never see the real benefit of this as a shareholder.
I see a leader of the company with great strategic vision and and the ability to deliver his plans. In my experience that is relatively rare on AIM, particularly in this sector. I agree that at best BMN’s ability to get this story out to the investment community is at best mixed but behind the scenes is a solid business that is working towards delivering its objective of creating a large low cost vertically integrated vanadium platform.
So I have laid out my assessment of BMN. I now invite the defenders of negatives to lay out those. And I don’t mean minor issues ... i bean the big ticket items that will make or break the company.
The above is most definitely only my opinion and must not be taken as investment advice. Alternative opinions are available.
The end. Thank you for reading.
Part 4
All very well having these grand plans but how are they paid for? Can we expect significant dilution, trashing the value of our investment? Well that happens a lot on AIM. Too easy for lifestyle companies to constantly dilute to keep the lights on and pay the Director’s fees. Certainly not the case here!!! Fortune Mojapelo is on record for saying he wants to avoid unnecessary dilution and his history demonstrates that. He also took no salary increase for several years while the company was growing. Complete contrast to many CEOs on AIM. And when bonuses have been paid they have taken shares, displaying confidence in the company. No negative here.
Some might say that BMN don’t always do what they say. Well that is certainly true. Dates have sometimes had to move or be put on hold, but usually due to changing circumstances. For example my understanding of JSE listing being put on hold was due to Vanchem becoming available and requiring their full attention, and of course changing the size and value of the company which no doubt would affect the listing. (This particular point is only my understanding and don’t claim to have full knowledge.) the point is BMB management have demonstrated themselves to be flexible and responsive to changing circumstances. That necessitates altering the plans, but usually to be replaced by a new objective. Thus ability of our BoD to be responsive to changing circumstances is one of the main reasons why I remain as a long term shareholder! No negative here.
Here’s one the doubters haven’t raised for a while ... the South African Government and corruption in general. There is no denying this is a challenging environment for any company. However I think it is fair to say that Fortune knows his way around this particular swamp and has done very well in managing these challenges. I suspect he is quite well known in high up circles and we have seen him sharing the stage with President Ramaphosa. I believe the company is in very capable hands here. Any negatives to some extent offset by the skills of the CEO to navigate a safe course.
Perhaps there are social or moral issues with the company and its operations? Well if there are then I don’t see them. Plenty if evidence that Fortune plays by the rules. They have negotiated good contracts with there staff and are involved in community projects as I understand it. They strictly comply to heath and safety rules and are conscious of their environmental obligations. No negatives here for me.
Part 3
Perhaps the markets BMN are targeting are declining or being replaced by 21st century industries? No. The steel market looks set to increase due to post Covid infrastructure projects and in China in particular the enforcement of more rigorous rebar standards. The VRFB market is very much an expanding market with huge growth opportunities. No negative here.
Falling or unstable Vanadium prices. Well this has been a problem in the past. However price trends are currently upwards and not unrelated to my previous point this seems set to continue. However the risk that high Vanadium prices could bring in slowing down VRFB growth is covered by BMN through being the first company to develop electrolyte rental agreements with their partners. No negative here then. In the unlikely event of falling V prices this is now likely to stimulate expansion of VRFB uptake and discourage Niobium substitution in the steel industry, both of which should constrain the degree of price fall. BMN seem to have covered all bases here. No negative here.
Perhaps the company will be unresponsive to changing markets? Unlikely. Look no further than how they have dramatically increased sales to China in response to the higher prices in that market. No negative here.
Part 2
High on the list on AIM is the junior mining explorer that makes big promises to become a producer backing this up with an overly optimistic PR campaign to suck in pi’s, then hammering them with large dilution whilst never getting into meaningful production. If you want a classic example look no further than the Weald oilfield where I suffered my biggest losses.
By complete contrast BMN back in 2013 set out on its path to become a producer and delivered on its promise. As soon as BMN acquired part of Vametco it separated itself from the vast majority of wannabe miners on AIM. The management delivered. No negative here.
Many companies have plans to expand but often fail. BMN on the other hand have delivered big time. They acquired a second producing plant (Vanchem), increased ownership of Vametco and raised production. They are currently working towards further increases in production at both plants. The management have delivered. No negative here.
Part 1
I think there is a lot of nonsense being posted about attempts to limit debate on this bb. And even if that does happen for every criticism of negative posters there are as many attempts to discredit those with a wholly positive view of BMN. So let’s cut the cr*p and examine what these negatives are that so many of you are so anxious to have discussed.
This company’s operations are diverse and complicated so I am definitely NOT talking about minor details ... I mean big ticket items that can make or break a company in terms of value for its shareholders.