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Lindon, well that is a relief. But your narrative in your threads is constantly pointing to doubt, and potential things falling apart. You have been here long enough to see the success of the development of this story and the success on building a solid business but some how you manage to come across as an investor who doesn’t expect any good to come, or if you do the impression you are exuding is more negative than it should be in my opinion.
Keep safe all.
Cheers RK
RK... my comments were referring to potential clients of BM finding borrowing money to fund and install mini grid/storage energy schemes will now be more expensive... not BM’s ability to borrow money.
I think your idea @Lindon that BMN will find it hard to borrow money is misguided because they will remain a profitable low-cost producer and those profits will not go unnoticed in this fast-growing opportunity. I would suspect that Chinese investment could be highly likely at this time to accelerate this, the world needs strong steel and safe energy storage going forward. Assume that Enerox is completed, Invinity Energy becomes a growing client, the Eskom BESS project makes a leap towards a fully funded BESS using a majority SA supplied VRFB installation from Bushveld Energy (which looks a very strong possibility) then to me the income stream to the Bushveld Minerals PLC companies looks incredible.
I think sir you need to wake up and see what is clear before us. I know we are right in the middle of the worlds largest crisis ever and many of us have very tough times ahead and everything is looking shaky, but it will recover.
Keep positive a safe all.
Cheers, RK
Lindon, I am intrigued by your posting. You are I think missing the point.
Firstly the world situation with the repercussions of the Covid19 virus is effecting economies everywhere is a very difficult way. The energy situation in SA with Eskom is indeed very difficult. But, there is a low cost solution if SA wnats to get out of this hole. It is to make the most of the climate, wind and sunshine is SA is abundant and they have a business which can supply energy storage and a highly cost-effective way. These infrastructure projects would go a huge way to helping SA out of their mess. It should not be forgotten that the World Bank is fully funding the energy storage project.
Now, let's look at Bushveld Minerals. The supply of vanadium is grounded in the steel market. This is not in SA. The vanadium, the worlds largest supply of this critical mineral is in SA and the world needs it. This is an export market! The mining operation is costed in SA Rand. The mineral is sold in US$! This means Bushveld Minerals operations costs are falling which will improve profits dramatically. When the world is able to switch back on the demand for further infrastructure projects both from steel and energy storage is going to be strong. Economies are going to be under pressure and these projects are key. Bushveld Minerals are already perfectly positioned to make the most of this. Essential maintenance on the plant at this time will only help efficiencies and the opening market from the merger of redT and Avalon and potential opening of supply to Enerox will bring strong opportunities for supply around the world in the VRFB market. This will underline the future of this company in SA. Even in countries which are under the worst of global situations, you can be sure there will be a phoenix which will stand out.
Please do not forget the point I made on Thursday after feedback from Mikhail the opportunity with forward-thinking companies like the redT/Avalon merger - Invinity Energy PLC, will bring a strong partnership based on clever project implications and expertise with the scale of manufacturing in a low-cost base will really open opportunities not only for V205 supply but from the vanadium rental products.
SA is the rice fields for the vanadium supply chain like no other place and the SA financial currency relationship will make this even more prominent.
Continued...
Dear me Lindon. You seem somewhat of a Debbie Downer. Vanadium is a commodity. If you have a Bar of Gold under your Bed in England it is worth the same as a Bar of Gold under your Bed in South Africa. The World for the foreseeable future will need Vanadium, that is not going to change. What will change is the cost of production in SA. This will reduce slightly due to the devaluing Rand. In addition Bushveld are adding value to their product by creating new revenue streams through the Energy Storage Market. This will be a global multi billion dollar Industry. What has not changed, is Colin at the mutual Fund. He doesn't get it - yet. But thats after all why he works at the mutual fund.
Regards
Bobby
The downgrade will force many investment funds to withdraw from SA as most of them are not mandated to invest in countries with a junk status credit rating.
The effect on BM’s business will probably be restricted to the ‘knock on effect’ of commercial concerns wishing to borrow money to fund mini grid/energy storage schemes now finding it will be far more expensive to do so
I can see why FM mentions timing as key for the JSE listing. since the last year the outlook has headed towards Junk status. Now this status has been reached will many institutional investors come all guns blazing? or will they await some economic recovery?
Maybe his acumen for numbers and calculated risk, is something we should trust until the storm is weathered.
Perhaps Moodys explanation behind part of its decision will prompt some more urgency for Gwede to get his finger out his pie hole. "Moody's, however, said that progress on structural reforms had been limited, and no initiatives that constitute a "step-change" for the economy had progressed. The agency also said that the restoration of full capacity to SA's electricity system will take "some years to complete," which also contributed to its decision. "
Moody's downgrade = Rand down = BMN costs down. Again.
JOHANNESBURG, March 27 (Reuters) - Ratings agency Moody’s downgraded South Africa’s sovereign credit rating to “junk” status on Friday, moving the rating down to ‘Ba1’ from ‘Baa3’ and maintaining a negative outlook.
The agency said in a statement that the main driver behind the downgrade was “the continuing deterioration in fiscal strength and structurally very weak growth”.
“The unprecedented deterioration in the global economic outlook caused by the rapid spread of the coronavirus outbreak will exacerbate the South Africa’s economic and fiscal challenges and will complicate the emergence of effective policy responses,” it added.
The majority of analysts polled by Reuters this week had predicted the downgrade.