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Pdub - you have conveniently neglected to mention that it was Fortunes mismanagement of the maintenance that was the cause of the operational instability in the first place. He tried to cut corners and it's come back to bite him as he admitted to in the Crux interview. As Matt put it, "growing pains".
Those costs include the refurbishment spend for the period too, the ongoing maintenance.
By the summer most of the work will be completed and that additional cost will be less, coupled with lower costs derived by volume. If costs are not down by then I'll admit concern.
Buying a brownfield site was always a worry for me. I am a lot happier that they recognised the problem early, recruited an expert and have got the finance to fix it and expand it at the same time. We are still in the middle of this upgrade. It worked out a cheaper deal than a new plant and less dilution overall, so no mismanagement here IMO.
You are starting to sound desperate. It's a bit late in the day to be complaining now, 2 years after the deal!
What are you talking about Mogwhy? That is utter rubbish. Troll by all means but try to sound less like Megamouth and nvhltd please.
I think you will find that a declining share price over the last three years is not due to the experience of the CEO.
The first issue was the 2019 crash in V price. No mining company would find life easy with that financial constraint just as they are trying to expand the business.
That was closely followed by Covid, including imposed shutdown and logistics problems that exist to this day.
Expectations were high for contracts from SA Gaovernment but their dithering has again impacted on progress on the BE business.
A slower than expected take up of VRFBs globally (in part due to Covid) also forced a rethink on BMNs priorities.
The BoD cannot control any of these issues and no single issue is wholly responsible for the disappointing sp, but they all contribute.
Then of course the shorting of the share which is clear and obvious and hitting the sp hard.
What the BoD can control is their response to this very challenging business environment. In that respect they have done a great job.
They have protected their cash position by putting on hold or delaying some projects, they have financed and continued the important expansion plans and essential maintenance, they have worked hard to reduce admin costs and overheads, they responded quickly to the opportunity to acquire Vanchem, they protected their workforce from Covid, they have reviewed financing agreements eg Duferco, whilst continuing with BE developments they have publicly focussed elsewhere, etc etc.
Remember this management have taken BMN from being a small wannabe miner to an important player in the vanadium space in just a few years, and they are not standing still. They continue to expand the business.
It is pointless comparing a vanadium miner and processor with other industries. The circumstances are completely different.
Just because a shareholder is underwater (or has sold out because of a low share price() that is no justification for saying the BoD aren’t doing a good job. That is way too simplistic but a mistake that too many people make.
Just my opinion.
The only way to get BMN into Vanadium production was to acquire a brownfield site. To get two was pure genius. I believe the combined purchase cost was about $120 million and absolutely no time delay.
I seem to remember the estimated cost for a new plant at Mokopane was well over $200 million and who knows how many years from planning to commissioning. And that is if a small company like BMN good have accessed the financing, and that is very unlikely. Even if they could the debt or dilution would have been massive.
They did a great job acquiring those plants but of course like buying a second hand car, they come with maintenance / refurbishment issues. BMN are now on top of those issues and the future looks very exciting. That is why the confirmations in that RNS were so important.
Just my opinion
Pdub - “ Just because a shareholder is underwater (or has sold out because of a low share price() that is no justification for saying the BoD aren’t doing a good job. That is way too simplistic but a mistake that too many people make.”
This is a long thread, but could you confirm who are directing the above to. I have mentioned PI’s being underwater, but have not made any comments regarding the BoD?
Thanks
James it’s not you. It should be pretty obvious who I am VERY suspicious of and you should be too if you care about your BMN investment.
Wow, so much anger and spite in these negative post's.
Someone's been caught with their pants down..... Big time.
"Bushveld has successfully completed the second phase of the three-phased expansion project at Bushveld Vametco, on time and within budget, allowing the company to take advantage of the high vanadium price which has persisted in the first half of 2018. This phase of the expansion project increases the annual production capacity from 3,035 mtV, achieved in Phase One, to 3,750 mtV, with a capex of USD 2.5 million."
Vametco has never produced more than 2,931 pa since.
Perhaps Pdub can tell us why.
The quarterly runrate to hit 3,750 pa is 937.5 mtv.
There has not been one quarter since June 2018 when the expansion project was completed that that target has been hit.
There is a reason for that.
And no, it wasn't covid.
Are you invested Mogwhy?
Jhill84 - play the ball, not the player.
My investment status doesn't change the facts.
I think people are forgetting that Duferco only started selling after an almost 100 % increase in the first tranch of issued shares at c. 13p. They are going to want a half decent return on this tranch as well,
IMO their not going to sell straight away.
Group production in Q3 2021 of 1,056 mtV, an increase of 19 per cent on Q2 2021
If you want to argue a point try checking your facts
Tbf he was referencing Vametco I believe, as that is Vametco nameplate?
BumblingFool - you've included Vanchems production in that figure.
The 3,750 target was for Vametco only.
Mogwhy thinking you can spread doom “industrial action “ hahaha
The workers have just been called to a meeting and congratulated on their performance regarding production they’re looking foward to a nice bonus in December
Think you’ve been watching too many films like the big short and fancy yourself as a trader hahaha
As if anyone could be influenced by a sad little twat like you
Anyway, the point is that Pdub wants me to pat Fortune on the back for ensuring operational stability this year when this is something that should have been done before the expansion program in 2018.
It's no good increasing the flowsheet output if you can't hit the intermediate numbers. It's basic stuff which he either ignored or was just trying to wing it.
Either way it was mismanagement.
and the guy calling for it works at BMW !!
A sea of green tonight .. the ferrets are back
A fascinating theory London, and fits the facts well.
Agreed on Dave Reeves at Calidus.
anyway, Mogwy
You still haven't answered the question. Which is the answer in itself. You probably cashed out thinking you could pick it back up sub 9p, and you blew it. oh well.
So, here you are trying to deramp a share you want to invest in. You're such a muppet
Posted by Mogowy on 27th September
RE: Solid results27 Sep 2021 08:26
We already knew that the low point was reached in H1 with low but increasing V prices and higher costs.
In real terms there was a small loss after including the IES and ATM sales profit. That's a pretty good result from the challenging conditions.
The average realised price in H1 was $29.2 and the average price in Q3 is now at $39.8 so we are seeing significantly higher margins in Q3.
My estimate of the average price for H1 was $33.9 against the LMB number of $33.4 so my weekly log of V price data points is reasonably accurate.
Looks like a 10 bagger from here for those with patience !
and Mogwy. "Growing pains" are exactly that when you are building a business. You probably never have built one so you don't know. I've built two, one in this country and one abroad. Growing pains are a real thing with businesses. Getting the right team,the right finance etc.. are growing pains, so stop making that out to be mismanagement. BMN have moved from being Miner to miner and processor. and eventually fully vertically integrated.
You couldn't find your ar*e with both hands, let alone build a business.