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exactly ... I read nothing into it given the frustration in his voice... but none the less, again, an opportunity missed
I think it would need 75% to be 'friendly' and I very much doubt they would get that without a 3-digit offer price right now
Sidenote - it is very interesting that you mention that FM avoided the T/O question twice.
Not drawing any conclusions whatsoever but just observing that it would have been very, very easy to hit that one for six.
Thanks Faramog. Your notes are appreciated. As you say, if we can meet or beat guidance going forward, that stops being a stick the market can beat us with and starts to be something to take pride in and add value. Beating the monthly run rate will be even better and will help with costs. It looks like this is all happening finally. That is somewhere to really build from.
Alongside production robustness the business really does need to start refining its image so people can see the energy / VI / circular green economy offer more clearly & our Directors really sell the integrated vision to the market. If they don't want to be treated as a miner, they need to not look like one. Hopefully they really get that image is important now. Hopefully shareholders finally do too! The TSX is backing Largo for all they are doing and their story, that's for sure.
It would be great if they finally started talking about real project opps in SA and in very real and candid terms - as they are with production -talk clearly about what BE is doing outside of BelCo. We deserve to hear fully from Mikhail.
It's time to move the conversation on from vague references to 100's of enquiries to real clients and projects, beyond just their own. If the BelCo fit out completes this year, then it needs clients and projects over the line pretty soon once commissioning is happening. That will get the market excited that things are becoming real. If they hope some of it will go to Eskom and some to commercial clients then say so! The selling of the VRFB vision is where they can really be blue sky.
If they get this right, for investors there is also a funded 50% production growth to underpin it all which is huge and results in lower costs.
We have all seen how much Evraz are spending on new capacity and we know the scale of costs required to replicate Bushveld's assets. Our MC doesn't come close to fair value. We are still FAR too close to FAR and miles from Largo. (Up 4.65% today 20.74 CAD).
Personally the most fundamental thing of all is that our BoD need to just get some positive newsflow happening. I mean its so basic, but a run of decent RNS' that aren't the quarterly updates would truly make the world of difference! This is a sentiment driven market and it literally thrives on newsflow.
Thanks again.
Thank you Faramog, I’m not sure what’s happening with my internet. But your info want there when I posted. Let’s really hope something starts to move soon. It’s painfully under valued and we deserve better.
Faramog
Thanks for posting the Q&A together with your comments.
Much appreciated.
Thanks so much Faramog. Your efforts much appreciated.
Thanks Faramog, good to see some direct question being asked of FM even if he is waffling a bit at some of them.
Let’s hope this gives further indication of feeling amongst us!
Oh bugger, did no one else send any questions? Cos Q1 to Q7 were word for word mine when I was in a particularly foul mood :)
See, while I may not be particularly happy at times with my investment rather than talk the company down further on here I send my questions to be read out in the AGM webcast to be asked in front of FM. Probably not getting an invite to anything anytime soon. Oh yeah, Strong Buy :)
Thanks' FMog, good detail
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- Did re-iterate that the changes and upgrades coming in over the next 12-15 months will see a running rate (currently aim not guidance) of 5400 mtv by dec 22
Q5 - Has the lead BE had now been eroded and beaten by others ? - clearly a note to Largo and its VE offering. FM basically waxed on about currently being 3% of world production moving to 5% near term and he was happy for other market entrants in the VE space- Basically, completely sidestepped the question
Q6 - Will Bushveld be taking steps to promote itself better ?- just waffle ... a bit disappointing as could have spoke about their web site changes, interviews, more active twitter space and a recognition of getting out there more
Q7 - There have been consistently missed targets - is this just poor management ?- again a bit frustrated making the point that if there had been no covid lockdown then 2020 would have produced 2954 (in line with guidance) and that 2019 was 2833 where guidance was 2800-2954- Did accept that guidance is about confidence and the market has not been confident, hence the change to less aspirational and more solidly based on actual stable production the figures now are- Was quite candid that the market perception on guidance (even though largely met really) has been one of missing them
Q8 - BE plant is Q3 2021 fully fitted out - when will Electrolyte actually be produced ?- I must say I was again a bit surprised by the answer. FM said plant construction started Jun 21 and fitting out would be complete by Q3 this year. This rather implies that commissioning will take a year !.... something not quite right about the answer, but in any case, did not say what I expected, ie about a phased commissioning producing electrolyte from say early Q2 next year..... all adds up to the 'why having banged on about it are Bushveld over a year behind Largo ?' ..... I suspect BE is at least initially rather tied up with Eskom !
Q9 - Board decision making vs Compensation ? (another very pointed question)- a bit of waffle, some 'its all covid' etc etc- Then got his brain into gear and spoke about salary/compensation levels being set in the mid-high level of norms based in no small part against stretching targets. Then went on to say there had been a bit of a painful adjustment made. (did not mention it but the strike in April was in part caused by workforce bonus expectation that was not met)
The FM question bit lasted about 45 mins and although he already had the questions, I felt there was a palpable level of frustration. That said, there has been a shift in approach and I do rather feel he fully 'gets it' .... expect guidance to be met from now on and some listing/BE progress later this year I rather feel.
Lemur not mentioned. Interestingly there was no question or mention of the Eskom saga...
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Resolution - For - against % (for)
-----------------------------------------------
1 - 215m 0.05m 100% (essentially)
2 - 112m 83m 57%
3 - 210m 5m 96%
4 - 184m 31m 85%
5 - 184m 31m 85%
6 - 182m 33m 84%
7 - 141m 74m 65%
8 - 135m 79m 63%
9 - 135m 80m 62.7% (need 75% to pass)
FM re-iterated that guidance this year remains 3400 - 3600 MTV and is on track
Q1 - When will BE make enough progress that markets will attribute some value to it ? - spoke about construction start (June 21), The rental & leasing progress (set up at least). - basically nothing new- Recognised that the value of BE is currently seen as miniscule and part of the problem is that Bushveld is positioned as a (junior) miner. The more interesting snippet was about future 'positioning' to become attractive to 'Energy' investors [my take is that means some form of future re-brand]
Q2 - When will Bushveld move off AIM and onto Main FTSE ? Also, what about JSE listing ?- nothing new .. remain interested, in discussion and monitoring. Did say that for JSE some of the issue had been around the Vanchem acquisition and I felt he said that was now passed (ie 1st full year results)
Q3 - When will the company more actively support the SP and is it trying to encourage a Take-over ?- FM was clearly frustrated and emphasised that the past aspirational guidance had at least in part made the company look unattractive... hence the change to realistic baked in progress- Also said costs were too high and needed to be much reduced along side with delivering to guidance- Very frustrated that Vertical Integration and BE were just not getting any value attributed. He did not say it but I guess also that there are 2 plants de-risking production stoppage also- Spoke about the company structure needing to change to make it attractive to Institutional Investors (but frankly IMO getting off AIM will gain some)
Q4 - [Wow .. what a question....] 'Hand on heart, does FM feel he has done enough (vis-a-vis) bringing in dilution (implying the SP progress was not as expected) and is a Takeover on the cards ?- Said the last capital rais was Mar 18 and the SP appreciated substantially as a result ....[Kind of ignores that was the Vanadium price bubble though]- Ignored the TO part and was a bit frustrated on the question being personal (was my take)- Did accept that the depressed SP performance was in part down to over-promising and under-delivery of targets. Did make the point that post 35-day work Vametco produced 278 and 261 MTV in May & June, but they were only planning guidance based on a monthly figure of 240 mtv, this being what they are confident is baked in as a stable and confidently achievable target. Fundamentally the watchword now is 'Operational Stability'