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Spell check - drivel
RK - many thanks for your considered and prompt response to my question.
I’ve obviously missed the commentary on the IRONVELD issue - probably due to my skimming here on account of the sheer volume of dribble from trolls of late.
I had seen (and can’t find it now) that we were considering exporting excess ore to China if financially viable. I’m sure it was in a recent presentation - but have to admit defeat!
Totally agree with everything else you point to in your response.
Patience is key!
Setcentric, we here have discussed the potential purchase of Ironveld and to be honest at this time it does not seem to be required by Bushveld Minerals. They need to complete on Vanchem and the money they have allocated would be best spent on the upgrades required and once the Mokopane Licence is issued developing the worlds largest high-grade vanadium asset in the world.
Bearing in mind that Bushveld Minerals have around over 3.5 million tonnes of Vanadium in the ground at a current value of at $140 Billion and a life capacity at 10,000 tonnes per annum of 350 years. So one could say Ironveld does not really constitute great value to Bushveld Minerals?
What do you think?
My priorities are:
1. Complete Vanchem aquisition
2. Build East London Electrolyte Plant
3. Start improvements at Vanchem
4. Improve Plant Effciencies at Vanchem employ additional people to run the plant
5. Start mining at Mokopane with ore off-take (already in place)
6. Use income to develop the mine and start ore deliveries to Vanchem which will supply high purity Vanadium to Bushveld Energy
7. Develop the Bushveld Energy Business
8. Continue upgrades as required at Vametco
9. Build and expand on the current portfolio and have the largest vertically integrated Vanadium Business on the planet with a company value in excess of £3 Billion with annual dividends of around 2 to 3% relating to the share price subject to sufficient profits.
Hope that helps!
Cheers RK
Any ideas as to who may be interested in their assets in the Bushveld complex????????
Continuation and for interest only:
Ironveld (IRON LN) 0.68p, Mkt Cap £4.4m – NED director resignation
Ironveld PLC report the resignation of Rupert Fraser, an NED of the company with immediate effect.
The company announced on 12 August it had entered into confidentiality agreements with several parties interested in potentially making an offer to purchase all or part of the Company's assets.
This was following a strategic review of the company’s mining assets announced on 2nd July at which time Giles Clarke, Chairman of Ironveld, said: "We believe that we have one of the premier in situ HPI, vanadium and titanium deposits in the world and we believe that the potential of the Project is best recognised by third parties.”
The company raised £1.1m on 19th February at 1.75p. The share price is 0.68p today.
Ironveld reported a cash balance of £322,000 at end December 2018 following the raising of £400,000 in November 2018.
A Definitive Feasibility Study published in April 2014 was reported to confirm “Ironveld’s project viability to deliver an exceptionally high-grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. Vanadium and Titanium **** containing commercial grades of vanadium and titanium will also be produced and sold.”
Ferro Vanadium 80% FOB (China) US$38.4/kg vs US$38.5/kg
* Bushveld Minerals presented at the RMB / Morgan Stanley Big Five Investor Conference in South Africa yesterday.
* The presentation highlighted the future forecast growth for vanadium in vanadium electrolyte in Vanadium Redox Flow Batteries ‘VRFBs’.
* Management see a ‘sustained structural deficit’ in ferrovanadium driven by constrained supply, limited new supply prospects and robust demand from the steel sector with significant upside from energy storage, ie VRFBs..
* The team reckon vanadium demand should rise by 10-15% once China’s new high-strength rebar standards take full effect.
* This demand driver should drive the market into deficit on its own in our view though any pullback in economic growth may offset some increase in demand.
* Further Chinese stimulus in the form of new infrastructure projects such as Belt & Road type initiatives should be good for vanadium demand as these types of projects should normally require a greater proportion of high-strength rebar for longer-term longevity.
* ‘Greater enforcement of rebar standards is expected to drive up specific vanadium consumption rates in China, bringing it closer to the levels of developed economies
* China Rebar Standard requirements: Grade 3 (400MPa), Grade 4 (500MPa), and Grade 5 (600MPa), require 0.03% V, 0.06% V, and more than 0.1% V respectively.
* Steel production in China was 928mt in 2018 indicating that if China improves its vanadium consumption from 0,048 to 0,077 => 0,03kgV/t that this should lead to additional vanadium demand of 27,840 mtV representing around 30% of total 2018 vanadium supply.
* VRFB energy storage: According to Navigant, the two largest market segments in utility energy storage for the next 10 years will require long-duration energy storage.
* Stationary energy storage demand is growing at a rate of around 58%pa and should exceed 100GWh by 2027
* Flow batteries expected to capture around 18% of the market, according to Navigant equating to some 20GWh of demand and nearly US$10bn in revenue by 2027 with similar growth rates to solar as seen over the past 10 years.
* Supply: is not as elastic in vanadium as it is in some other metals with three out of the world’s four primary vanadium processing facilities based in South Africa.
* Conclusion: Bushveld owns two out of three of these facilities and therefore may potentially control much of the future market for primary vanadium supply. The company is well placed to command and to benefit from ongoing strong demand for vanadium and from higher prices to come from what looks like a developing deficit in the vanadium market.
Bushveld Minerals* (BMN LN) SP 21.3p, Mkt Cap £238m – Conference presentation in South Africa highlights forecast growth of vanadium electrolyte demand
(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin)
"EXCEPTIONALLY STRONG" BUY – Valuatio