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@pb940 I think this is something that newcomers, outsiders (and random bashers) truly fail to appreciate.
The number of times things have been promised and delivered over the last few years I've been here is astonishing. Barriers removed, growth delivered, time and time again. Yes there have been a few mistakes but never once anything I would consider slightly dishonest, and lots of things that are clearly in the very best interest of the shareholders. Sadly, even acting in the best interest of your shareholders is a very rare thing on AIM.
And very nice to have confirmation that the purchase is fully funded. But did any of us really have any doubt about that?
Crossed posts SF, that is correct.
The great thing about the mining right process is that we will get a second RNS for final granting of the license once the conditions have been met. So really this is just the warm up act.
Pdub - I thought we just got the mining right yesterday not the mining license. I've not doubt we'll get the license (and possibly is quite short order), but don't think we've got it yet. The SPA note also states this.
I must say pdub it's such an exciting investment to have, it's certainly been one of the most honest companies I've invested in where they just get on and do what they say they will.
Thanks for posting that pb940. I too noticed the 'fully funded' statement!
9 days to go until the scheduled acquisition of Vanchem (100% of it) on 31 October. At reported production levels this will add almost 1000 mtV pa to BMN. Hugely important step for the company, diversifying the range of products and potential markets. Also very important are the expansion plans at Vanchem to restore the other two kilns ultimately leading to production of over 4000 mtV pa at that site alone.
And now we have the necessary mining licence has been granted for Mokopane which will provide the all important supply of vanadium feedstock to the plant and possibly to other customers.
All very exciting.
Just my opinion.
Regards. Pdub.
We understand that Bushveld is fully funded for the $68m acquisition of Vanchem . . .
Job done then
Valuation: our valuation for Bushveld is based on our Net Present Value of our forecast cash flows for Vametco,
Vanchem and Bushveld Energy plus more modest valuations on Bushveld’s stakes in AfriTin, Lemur Resources,
P-Q Iron & Titanium. Our 80p valuation is based on a ferrovanadium price of $45/kgV.
The future of Bushveld: While Bushveld’s engineers ramp up production at Vanchem and improve on performance
at Vametco, the technical team at Bushveld Energy are positioning the business for growth in Grid Power storage
through development of ‘VRFBs’ Vanadium Redox Flow Batteries.
While our simple modelling of the potential of Bushveld Energy adds just 9.15p/s to our valuation we reckon the
business has potential to perform better than expected in terms of assumed battery capacity, margins on electrolyte
and fess for VRFB construction.
Conclusion: Bushveld Minerals continues to rank among the most exciting growth companies on the AIM market in
London supported by its vanadium and green energy business.
Bushveld Energy should see rapid-growth supporting new Wind and Solar projects with VRFB batteries. The
development of Bushveld Energy alongside Vametco and Vanchem will ensure the battery business has available
vanadium supply when new demand soaks up spare vanadium stock.
Bushveld’s underlying cash flow combined with the ability to lease finance vanadium electrolyte in VRFB batteries should enable the business to develop to meet much of the significant growth expected in Southern Africa and beyond.
https://www.uploadlibrary.com/SPAngel_JohnMeyer/SP_Angel_-_Morning_View_-_Tuesday_22.10.19.pdf
Bushveld Minerals* (BMN LN) 27p, Mkt Cap £300m – Mining right granted for Mokopane vanadium, magnetite
mine
(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% ofAfritin)
• Bushveld Minerals report the issuance of a mining right application for the Mokopane vanadium mine in South
Africa.
• The mining right application is significant as it is a step towards the award of the mining right and a full mining
license for the Mokopane mine from the Department of Mineral Resources.
• Bushveld is keen to gain full rights to mine the Mokopane vanadium, magnetite mine ahead of its acquisition of
VanChem due at the end of this month.
• The company will now sell 3.2% of its interest in the mine sold to the Bakenberg Community Trust.
• This along with another 1.8% from Izingwe Capital, Mokopane’s other shareholder will Bakenberg Community
Trust’s stake to 5% in accordance with South Africa’s Mining Charter III.
• Bushveld’s interest in the Mokopane mine will be 57.6% post the allocation to the local communities and the
Employee Share Option Program.
• We understand that Bushveld is fully funded for the $68m acquisition of Vanchem and will move to start
development the Mokopane mine as soon as the full mining license is received and the Vanchem acquisition is
done.
• The Mokopane vanadium mine has a 298mt JORC compliant resource grading 1.75% in magnetite and 1.41% insitu.
• The orebody runs for 5.5 km dipping at ~20o with three parallel overlying magnetite layers grading 1.6-2% V2O5.
• Mokopane’s relatively high grade of magnetite should reduce the cost of upgrading and processing its ore for
vanadium and magnetite by-product production.
• Vanchem is likely to use spare ore from Bushveld’s operating Vametco mine in addition to stockpiles held by
Vanchem.
• The addition of Vametco ore to existing feedstock and the ongoing operation of Vanchem means the operation
can ramp up relatively quickly and efficiently with relatively little additional expenditure in proportion to the scale of
its capacity.
• We estimate the Mokopane mine can be developed for under $20m while Vanchem can be ramped up towards
full capacity according to available cash flow from Vametco. Developing Mokopane will save on trucking to
Vanchem from Vametco.
• Production targets:
o 2,800-2,900mtV - for 2019 (Vametco only) - the full year should include some production from Vanchem
assuming the acquisition completes on time.
o 3,405mtV – 2020 Vametco
o 4,200mtV – Vametco run rate sometime in 2022.
o Target for 8,400mtVpa with nameplate capacity of 10,000mtVpa as Vanchem restarts idled furnaces