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Gr33ning - Vaneck are not that smart
Would Vaneck be buying back in due to the Licence being granted to not not only mine the Vanadium but also a plethora of other rare earths? I have no idea of what quantities they are at or how hard to extract them but maybe that gave Vaneck a nudge. I could be way off key but maybe. Gla.
And now the big delayed trades start popping up with a mixture of buys and sells, somethings happening in the background with shares changing hands....
Or thinking about it on the flip side could yesterdays big trades actually have been buy orders at 27p placed earlier in the week, so the MM's are still trying to fill the rest of the shares Vaneck need to get back to 13 mill, by holding the SP at 17p and waiting for short term investors to get bored and sell? My gut says they are taking BMN out of their fund, but I have no evidence to back that up, only they will know and we will find out when they update their share holdings. If they are removing at 27p once they are cleared this will be able to move upwards and visa versa if they are adding at 27p this will have to move up as well. This is based on the fact that we are currently being held at 27p. Anyway its a good long term investment whatever happens.
NickyP
When the BMN SP is only going one way from here, why would you delay buying the shares and paying much more for them ? VanEck will want to fill their book at the lowest possible cost, which is now.
BBN
Thanks for your clear and positive contributions this morning (and in the past) it certainly helps me clarify my own views on our company's future.
Thanks Alfa looks positive if they do have to buy those shares. Are they able to remove BMN from their own fund and just track the other companies in the index? Just don't understand why they would sell down that 4 mill and give themselves the job of buying 17mill unless they expect the price to decrease in the next week?
So we are held at this level waiting for an entity to buy 17m shares and the sp will not move? Thats a level playing field!!!!
biganuf - well I'm sure that they immensely powerful forcefields inside their organisation that prevent the investment arm talking to the index tracking arm and vice versa ad nauseam, not.
Start a fund, call it an Index, sound important, wait for the punters to roll up, etc, repeat
VanEck also own MVIS who determine the index. Is that unusual?
I wonder if the index is used by anybody else.
https://www.mvis-indices.com/corporate
Harts - because Vaneck tracking of their own rare earth strategic metals index (MVIS® Global Rare Earth/Strategic Metals Index (MVREMXTR)) would oblige them to hold 3.52% of the funds value in Bushveld Shares. Until yesterday that had been zero, but they still had 4.5M shares knocking around from the last time BMN was in the index and this equated to 0.92% of the funds value.
Trades yesterday were strongly suggestive of Vaneck actually selling down the 4M that they had held as of Monday so I believe that they have now given themselves the job of having to find the full 17M in the next few days.
Why the volte-face, and how so before todays RNS ? Those are questions you would have to put to them. I don't understand why they ever considered leaving BMN out of their Index - perhaps some lithium-ion play went belly up.
Hi Alfa, can you explain to me why they would have to come back and buy that amount of shares? Just inquisitive.
Alfa - I had a quick scan of their prospectus and it does say that they are not obliged to exactly match the index. So whilst utimately it seems they will need to increase their holding substantially I think they will be able to manage their buying in a controlled manner.
NickyP - that does appear to indeed be another huge development.
I estimated that Vaneck had actually closed out on their previously held position of 4.5M shares yesterday. It would appear that they are now in the position of having to come back to the market to buy 17.3M shares.
This may be why we are seeing what we are seeing this morning.
I mentioned earlier that it appears Bushveld is back in the REMX index. at 22/10 Vaneck declared approx 4.5m holding giving a weighting in their ETF (which tracks the REMX index) of 0.93%. The weighting in REMX should be 3.52%.
Does this mean they need to acquire circa 17 million shares, or am I missing something?
Bushveld is back in the REMX index weighted at 3.52% just below Largo.
Could the 500000 shares be payment in full for loaning out the shares. The loaned shares could have been returned at the same time. Tomorrow we will see if Vaneck have sold out.
spot on JMC
In all previous occasions where a) trades in the market have been correlated with b) Vaneck reports the sequence is as follows:
Day 1 - Actual trades (a) take place
Day 2 - Vaneck reports the change in position on their spreadsheet
Day 3 - The Vaneck spreadsheet is actually published (b)
Thus market trades on Monday are reported today, wednesday and Tuesday trades will be reported tomorrow. So we may well get confirmation tomorrow that their position has dropped by 4 million or perhaps all the way to zero.
...However, I wonder whether that increase of 500k is actually the 500k trade from Monday and their published holding doesn't yet show today's mega trades?
...actually appear to have increased their holding by half a million:
https://www.vaneck.com/etf/equity/remx/holdings/