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Part 3:
The company presentation which explains the basics in a nutshell:
http://www.bushveldminerals.com/wp-content/uploads/2019/08/May-2019-Corporate-Presentation.pdf
What about Vanadium Redox Flow Batteries:
http://www.bushveldminerals.com/wp-content/uploads/2018/11/Energy-storage-101..pdf
Plenty for any potential investor to consider when researching this company!
Part 2:
Recently Fortune Mojapelo in an interview summed up the future:
“So we have to appreciate that it's not the most straightforward story and it's one which I think the market will only fully appreciate as we deliver very granular initiatives such as the electrolyte plant and we start to produce electrolyte, we deliver the electrolyte rental contracts and the market can see how that works and how it translates into value. As we deliver deployments of VRFBs and as we demonstrate what sort of partnerships, we are going to do with VRFB manufacturers. So, I can understand why the story is not yet fully understood or appreciated but I think it's only a matter of time."
"On the dividend policy, we didn't so much change as announced our approach to dividends. It is the first time we are actually explicitly stating how we view dividends going forward as a company The key points we wanted to highlight there were firstly that as a company we are still very much a growth story and therefore a big chunk of our proposition is capital growth. However we as a low-cost producer we are a cash-generating business and we believe that with the growth ahead of us we will be in a position to fund our expansion and our growth and still have sufficient free cash flow to pay out a dividend and we just wanted to clarify that when we do that, it will be based upon a pay-out ratio on our free cash flows."
If you want to understand where the company is right now and what it has achieved please read the Bushveld Annual Report:
http://www.bushveldminerals.com/wp-content/uploads/2019/06/Bushveld-2018-Annual-Report.pdf
Cheers RK
Part 1 Updated:
The world is currently in a state of change, for years oil investment has excited investors as this was the constant growth area and the black stuff seemed to be liquid gold. Today we are seeing a tide change. If we look at the automotive industry all development was on ICE, but now every manufacturer is focusing on EV development. The global electricity producers were focused on Coal, Gas and Nuclear. But things are changing, infact changing quickly. Never have needed to change our focus more than we do today. C02 emissions are a real concern and the climate crisis with global warming is real. Here we are in another record heatwave, this time on an August Bank holiday weekend when it is normally cooler and damp!
But the world needs to find new technology and low carbon energy sources to invest in. Vanadium Redox Flow Batteries are going to be a huge part of the global revolution, the advantages for energy storage are huge compared to the other possibilities. Right now, there is no other technology that can store electricity repeatedly without losing its capacity to store and hold power for so long and give such long duration. The ability to give transmission grids, balance and frequency correction is huge. There is a huge saving to grid suppliers, by installing large scale batteries as they don’t need to increase transmission cable sizes as the power can be produced off grid peaks and stored locally. So, Energy storage will transform the energy generation and distribution markets. Combine this with the increase in the use of renewables, and it is easy to see why there is such a compelling reason to invest in businesses, who are going to become key parts of this essential supply chain. Vanadium looks like it will become an increasingly popular part of this energy storage revelation in use using VRFB. Bushveld Minerals are in the process expanding their vanadium mining and process capacities to facilitate this growth in demand and by pioneering the vertically integrated electrolyte production into its standard programme through its subsidiary Bushveld Energy. The upside potential of this intelligently led business with passionate directors who are creating new jobs and a longterm future for local businesses as well as Africa cannot be underestimated. These products are not included in any global tariff / tax plans and will be globally significant. This will ensure that this company has a very positive future with massive growth potential.
I would recommend thoroughly researching this company as its stock value is exceptionally low compared to it its potential. They have no debt, are making strong profit revenue and have committed to rewarding investors with dividends in the future as the business expands. Investing in profitable and growing renewable energy investments is the way forward.
Continued....
Qwerty...Irons a strange one licenced and ready to go ... Mokopane no licence unable to be used ... both very able to provide quality offtake agreements for vrfb or steel export ... yet the Minister for mines talks about job creation and attends ANC rallies every week to do some singing and sway his belly on different stages.... the countrys resources are seemingly not being exploited / used for the peoples benefit.... a socialist command economy failing yet again .. they are being out thought and played by China imo.
How many years did it take for Apple to pay a dividend? Things change. Vanchem May have become available after they planned the maiden dividend and then realised the money was best used elsewhere. Seems like you only get mining licenses in SA these days if you can prove you have the money and intention to build an operating mine. That’s why IRON are trying to dump their asset to someone else as no one will fund their mine. I presume they are hoping some prospective buyers will not do their due diligence.
Coffeecups please make a little more effort to spell my online name correctly. Thanks.
PUB - my point exactly - do not mention a dividend framework and then never revisit the statement - dropped ball imo.
Agreed and characterising every adjustment in strategy made by this young and blossoming business as a dropped ball is really wide of the mark. The sign of a great business is one that isn't afraid to make changes when situations demand.
Excellent article RK.
BMN is a growth company. In my opinion BMN were correct not to pay a dividend this year as the cash is needed for investment for long term growth.
Regards. Pdub.
@RichKen. An extremely well written article, precise and to the point including the last para. Definitely not a dropped ball!
Rich - agree completely although wouldn't have mentioned the dividends as that was a dropped ball from the BOD imo....
The world is currently in a state of change, for years oil investment has excited investors as this was the constant growth area and the black stuff seemed to be liquid gold. But, today we are seeing a tide change. If we look at the automotive industry all development was on ICE, but now every manufacturer is focusing on EV development. The global electricity producers were focused on Coal, Gas and Nuclear. But things are changing and chaining quickly. Never have needed to change our focus more than we do today. C02 emissions are a real concern and the climate crisis with global warming is real. Here we are in a heatwave on an August Bank holiday weekend when it is normally cooler and damp!
But the world needs to find new technology and low carbon energy sources to invest in. Vanadium Redox Flow Batteries are going to be a huge part of the global revolution, the advantages for energy storage are huge compared to the other possibilities. Right now there is no other technology that can store electricity repeatedly without losing its capacity to store and hold power for so long and give such long duration. The ability to give transmission grids, balance and frequency correction is huge. There is a huge saving to grid suppliers in installing large scale batteries as they then don’t need to increase cable sizes as the power can be produced off grid peak and stored locally. So Energy storage will transform the energy generation and distribution markets. Combine this with the increase in the use of renewables it is easy to see why there is such a compelling reason to invest in businesses who are going to become key parts of this supply chain. Vanadium looks like it will become an increasingly popular part of this energy storage revelation. Bushveld Minerals are in the process expanding their vanadium mining and process capacities to facilitate this growth in demand and by pioneering the vertically integrated electrolyte production into its standard programme through its subsidiary Bushveld Energy. The upside potential of this intelligently led business with passionate directors who are creating new jobs and a future for local businesses as well as Africa cannot be under estimated. These products are not included in any tariff plans and will globally significant will ensure that this company has a very positive future with massive growth potential.
I would recommend thoroughly researching this company as its stock value is exceptionally low compared to it its potential. They have no debt, are making strong profit revenue and have committed to rewarding investors with dividends as the business expands. Investing in profitable and growing renewable energy investments is the way forward.
Cheers RK