Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
> GREEN ENERGY RNSs/Calalysts:
> Enerox:
- Enerox supplying the VRFB in the world's first VRFB-powered ship - this should be RNS'd.
- Who knows what else but they clearly have other contracts on the go and in the pipeline from Thursday's RNS.
> Bushveld Electrolyte Limited ("BELCO")
- Electrolyte Plant Procurement stage completion.
- Electrolyte Plant Construction stage starting.
- Vanadium Electrolyte Rental Ltd ("VERL") rental contracts announced after the success with Pivot Power last year.
> Grid Battery Energy Stoage
- Eskom BESS tenders. There's 7 projects in "Phase 1"
- Other BESS contracts in South Africa now things have opened up
- "Other African projects such as the World Bank's 17.5 GWh energy storage roll-out programme" - as mentioned in the Corporate presentation here http://www.bushveldminerals.com/wp-content/uploads/2021/03/Bushveld-Minerals-February-Corporate-Presentation.pdf
MINING RNSs:
- Vametco Expansion this year
- Vanchem Expansion this year
- Production rising by another 700 tonnes of vanadium, despite the downtime associated with boosting Vametco & Vanchem's capabilities.
- The Mokopane DFS. Feel this one has slipped under the radar but this should be transformational because Mokopane has 298,000,000 tonnes of vanadium in the ground. This could be a game-changer!
OTHER RNSs / Catalysts:
- Move to FTSE Main Market
- Dual lising on the Johannesburg Stock Exchange (JSE)
- Disposal of Lemur
- Rebrand to a Green Energy stock
> EXTERNAL Catalysts: (as in outside of Bushveld's control)
- FerroVanadium commodity prices continuing to rise and breaking the psychologically significant $40kgV mark. This will definitely happen. The worldwide consensus is that we will reach $45-50kgV in 2021, and I actually believe we may be just weeks away from that.
So there are easily dozen, if not two dozen, bits of news that will act as a catalyst to the share price for it to smash through the all time high of circa 50p, through to 100p.
And you can currently buy for around 15p - the most crazy bargain!
Libero why is a bargin?, it will be more of a bargin next week and the week after, and the week after that, that is why people are selling, I have, but kept a few K, the only people holding are the smug sods who got in very early, you know who they are as they ramp week after week after week.
This recent fall is just part of the toing and froing that goes on, particularly on AIM. The share price rose to 18p in anticipation of the Q1 update and sadly it turned out to include a couple more (small) negatives than we'd have hoped. It always takes a trading day or two to shake off something like that, so yes it might fall a little more and bottom out somewhere around the 14p mark but as Libero has pointed out there's lots of positive news likely to be released soon and coupled with the rising price of V I'm fairly confident we'll soon be back nearer the top of the current trade range (18p).
PJx323
I think Libero has covered this in his post very well.
The one point he has not mentioned is Acacia Resources selling circa 16m shares to fund Ennerox/Mustang. As did Bushveld with its Invinity Goldings turning a 3 x profit in the process. Both these actions have to be seen a positive light as these are shifting some of their investment from the Vanadium producer to the end users in the VFRB markets which will help grow the electrolyte market and the markup of Bushveld's Vanadium products.
The additional problem is the other RNS on Friday with another major holder, Acacia, selling down. That was needed like a hole in the head. We also have the Orion CLNs lurking and that is some overhang. I really think that Fortune thought the price of Vanadium would never get as low as it did and this has had a serious impact on profitability in the last two years. We can only hope there is a sustained increase in the price to upwards of $50/kg going towards Xmas.
My periodic return to BMN site, and no change from the views and posting of a few months ago. The site is full of well informed and well intentioned posts, all very positive but basically most with a "jam tomorrow" theme. Looking at other V miners/processors, most have done substantially better than BMN who even with the V price rocketting cannot make a gain or hold a price much above 16-17p range. When I looked into V markets (Dec 2020) , Evraz was trading at 475p and recently touched 700p (back to 670p range today) but still at 40%+ gain. BMN has fallen from 19p to close to 15p (round numbers) and so a 25% reduction. Unfortunately whilst trying to be positive regards BMN, I fear that when I return in another 3 months the story will be the same, great posts, research, inmformation and comment .... but a languishing share price and further "jam tomorrow" statements. Hate posting in this negative manner, but unfortunately if it walks like a duck and quacks like a duck, then its a duck!! Lets see when I return end of summer and I for one hope I am wrong!
Its pretty clear to me that Acacia sold down to fund their MUST investment which is entirely reasonable in my view.
If Enerox does well we will all benefit.
TC good luck with your buy, at 15p you should expect returns........ unfortunately I am in at 18-19p range and as soon as I can recover my outlay will be an ex BMN holder as I can find better opps for my £5k. As I said, if i had taken Evraz my £5k would now be worth £7.4 k in 6 months, whereas with BMN its dropped to £4k and I dont see a stellar return in the short or medium term. Wish all BMN holders well, but expect a period of dumping to happen as many are unhappy with share price performance in Q4/20 and Q1-2/21.
dont blame you @prussell - but as I said over the w/e I expect the VFRB and Vanadium landscape to be rather different by year end (one way or another)
Still very happy as I am in for the long term but I did sell some this morning to give me some play money and liquidity - the update on and car-crash dial in did no favours at all and rather detracted from the slightly bigger picture which is that almost 5 months into the year we have only produces a bit less than 20% of the guidance production due to planned maintenance.
So with knocking 80% to go on a rapidly rising Vanadium price, both the costs will fall (as the fixed element is apportioned wider) and the operation costs will fall due to the maintenance and scale. Add in the rising vanadium price and we still make a very healthy profit over the year
I am afraid it is still jam next year ... but the blocks are coming together
Prussell's a hindsight investor, it never ends well.
Just a small point faramog but it was a Q1 update (3 months) not 5 months and there was only 2/3rds of that quarter actually producing.
With all due respect prussell1963, the reason for the drop is obvious - there are a couple of IIs selling off millions of shares over a protracted period. When that period ends, which could be tomorrow for all we know, you can expect a rerate similar to the 140% increase we saw the last time an II ran out of stock to sell.
Looks like someone has Hi-jacked cindercones account
Prussel you do sound exactly like some posters just before the big rise in 2017 / 18. You are entitled to your opinion about the future share price, but now that the Vanadium price is on a solid upward trend and that the Vametco plant is running at full capacity then logic tells me that this will soon be reflected in the share price.
As for the cliched expression “jam tomorrow” isn’t that why everyone invests in shares? The future share price growth? Far better to invest when the share price is low rather than waiting until it has already risen.
Haha pb940 yes just a small point about complexly misleading use of numbers! Well spotted.
Having been investing (in the markets) for a long time, it seems to me that folk throw rationale out of the window, frequently.
In this case, they want it 'on a plate'...that is, with all the ducks suitably in a row. And at the very same time, they want no-one else to know, so they can buy low!
That is surely laughable? Yet it seems that is what a lot of people who comment here seem to expect.
Come on now...so investors have to wait beyond their comfort zone...so what? They don't have a right to proft 'now' just because they wish it.
You have to be in it to win it, says our friend, and others....otherwise, there are a zillion companies out there with fantastic figures and good news flow that are priced accordingly. Invest in them!
BMN is undervalued if one has the opinion that it has a great potential.
So yes...jam tomorrow. And not that supermarket shyte either....
My typo... General point though is the substantive production is to the end of year into rising vanadium prices and lowering cost base
One thing is absolutely for sure and that is once the sp starts going up properly it will go up far, far quicker than it has drifted down, merely because it is in such an underrated situation. So the sell now, buy back later brigade at this point have a very good chance of having to buy back more expensively or elect to miss the boat altogether.
Uncle John, how does that (the sp going up quickly), square with the Orion CLNs? This overhang is on the near future horizon and just interested to see how you think this would work. Orion are going to want their paydays and will start converting at a profit for them.
Once the SP starts to climb Orion will surely think again about selling down, that’s if they are thinking of it at all anyway.
UKSteve how do you know Orion are going to convert and sell? I fully accept that is possible but equally hasn’t there been discussion here about them being a longer term investor?
Do you have knowledge to the contrary?
I thought they can only convert up to the amount of the facility which has been used by BMN, and the conversion price is 17p. So if they were going to take some cash off the table they probably won't start selling until (very worst case)- mid 20's otherwise the investment is not worth the risk for them?
Quote from RNS of 30 November 2020:
Philip Clegg, Portfolio Manager at Orion, commented:
"We are thrilled to get the expansion at Vametco fully funded and to support the refurbishment plans at Vanchem. We are looking forward to partnering with Bushveld as it executes its growth strategy and ongoing advancement into battery technologies."
Partnering Bushveld as it executes its growth strategy doesn’t sound like words from an investor that wants to cut and run. Could of course be wrong and just my opinion.
UKsteve, I acknowledge there are the Orion CLN's, which Orion will want to convert at some stage, obviously your guess is as good as mine but Orion are very savvy and in my view will want to see a decent profit. One way for them to "have their cake and eat it" is to convert over a period of time so as to maximise their profit whilst at the same time providing cash for further loan projects. They certainly will not convert for some while as it would negate the profit element. Orion plainly did extensive DD on BMN like many LTH's and know what is in the pipeline. Hope this helps.
The Orion CLNs do get overlooked in a lot of the projections we see on here, far more time has been spent discussing the JSE listing (as an example) which is insignificant when compared to the Orion deal. I do think that the Orion deal was a lifesaver here, that will come at a future cost. We have a history of these large investors selling down and cashing in , after all their business is to make money first and foremost. Not all achieve this (Golden Summit, Obtala).
This is more of a concern to me than the price of vanadium. At least if that stagnates at current prices for the next 12 months we should be making a better profit next year due to decreasing operational costs after the revamp and increased production.