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can you remind me where and when this was posted - it would be a useful addition to the portfolio of articles on TBP if BBN is ok with that

Libero,

assuming of course it really is a genuine sell. As I've said before there is certainly evidence that these so-called 'sells' have an unusual correlation with organic buying pressure that would suggest that they are simply naked shorts laid by Market Makers - thus they are not necessarily indicative of genuine PI sentiment but rather the belief of Market Makers that they will be able to subsequently drive the price down further.

At some point there will be a collision between the reality of the progress of the company/VRFB technology and what the Market Makers would like to happen. Events may transpire against them.

Brad29 - the first people to benefit from a relaxation in self-generation rules will be ourselves - recall from the most recent RNS:-

"Bushveld Energy will devise self-generation options for all of Bushveld's existing and future electrical energy needs at its operations. With current aggregate loads of 21MW that are expected to increase to over 50MW post completion of expansion and refurbishment programmes, this need has the potential of more than 125MW of solar PV and 180MWh of battery energy storage systems within our facilities."

Both Mikhail and Pat Frampton pointed out that with such resources it is possible to cycle our own VRFBs twice a day - once from the solar PV in the middle of the day and once from cheap Eskom electricity overnight. Try that with a lithium-ion battery and see how long that lasts.

I believe that this will become the model for industrial power supply self-generation in South Africa and there will be dozens, if not hundreds, of plants wishing to do the same, just in SA

how you are going to get there.

Dave - thank you for taking the time to answer my question - clearly that is time that numerous people on this board were not prepared to spend themselves.

So when Bridgen says 'Capital cost' he is talking about the Capex cost of $17,000 per tonne of production on an annualised basis. When you consider the cost of paying for just the first phase $100 Million of capital you have a couple of options.

1) Pay using equity - at current SP levels this would require a dilution of something like 300%. The low liquidity shown in trading on this stock over the last year or so (many days have zero trades for example) suggest that it is a struggle to get a placing of 0.5M GBP away let alone something 200 times larger.

2) Try and get a loan - this will add finance interest costs, that, for example, don't have to be paid by people such as Bushveld Minerals, because they already have a plant and it is already fully paid for.

But let us hypothesize further - how much would the interest charges cost if somehow it was possible to find someone willing to pay for it all ?

The interest charges on this are going to be approximately 15% if you are going to provide the lender with any kind of reasonable return after tax.

On a per lb V2O5 basis this would add around USD 1.15 per lb V2O5 to your C1 cost - so that is taking the hypothesized 1.48 USD per lb up by another 78% to USD 2.63/lb V2O5

Supporters would claim that this is a victory as it still less than the 4.37 per lb V2O5 equivalent price that your correctly surmised it currently costs Bushveld Vametco to make Vanadium in FerroVanadium and Nitrovan , however they are missing another point.

If you look at FerroVanadium versus V2O5 prices you will see that FerroVanadium prices per KgV do NOT work out at the idealised factor of 3.9 (2.2 x 1/0.56) times the USD price per lb of V2O5 that you would assume - years of evidence shows that the factor is much closer to 5 ( https://www.thebushveldperspective.com/vanadium-prices )

To put it bluntly a Vanadium atom in FerroVanadium is worth 128% of the value of a Vanadium atom in V2O5 form. This is because it makes steel processing easier. There is an even greater premium for Nitrovan as the Vanadium in that form is not just easier to process but also more effective once it is processed - that is why most Chinese mills take the Vanadium in CarboNitrided forms. I am not going to multiply the FAR production cost of 2.63 USD by 1.28 as that is conflating costs and potential to earn revenue but you see the point I am making. You cannot simply talk about production costs of making apples if everyone else is making oranges.

So what does this all mean ? - well if one is going to compare Vanadium produced in FAR's hypothetical plant with Vanadium produced in existing operating plants then you need to do the comparison very carefully and you also need to not make wild claims about what you are going to achieve without setting out clearly how you are going

These ones GKahn, they were about 4 posts down the page if you had bothered to look.

http://www.ferro-alloy.com/upload/static/presentations-other/en/FAR_QA_with_CEO_ENG.pdf

Page 6:- "Ours is around $17,000 per annual tonne of pentoxide for phase 1, $13,400 for phase 2"

Since Vanadium Pentoxide is only 56% mass by Vanadium this equates to USD 30,360 per Tonne and USD 23,930 per Tonne respectively per contained Tonne of Vanadium

For the record Bushveld Minerals produces at a cash cost per tonne of Vanadium of USD 17,200 per Tonne of Vanadium ( https://www.lse.co.uk/rns/BMN/q2-2020-and-h1-2020-operational-update-xawyo9hupz4t6vk.html )

What you think is irrelevant GKahn, but what your CEO has gone on record as saying is important

Ohhhh GKahn but you have not answered the question as to what 'fraction' of other producers costs Ferro-Alloy resources hopes to be able to produce at - so I shall have to answer it for you:-

http://www.ferro-alloy.com/upload/static/presentations-other/en/FAR_QA_with_CEO_ENG.pdf

Page 6:- "Ours is around $17,000 per annual tonne of pentoxide for phase 1, $13,400 for phase 2"

Since Vanadium Pentoxide is only 56% mass by Vanadium this equates to USD 30,360 per Tonne and USD 23,930 per Tonne respectively per contained Tonne of Vanadium

For the record Bushveld Minerals produces at a cash cost per tonne of Vanadium of USD 17,200 per Tonne of Vanadium ( https://www.lse.co.uk/rns/BMN/q2-2020-and-h1-2020-operational-update-xawyo9hupz4t6vk.html )

Gkahn - your threatening tone is rather obvious to everyone reading your response.

Why don't you simply answer the question as to what is your predicted production cost and then everyone can compare that with an actual Vanadium producer.

knuttie - the reason that in the past 3 years we were not able to highlight buying strategic stakes in two of the world's leading VRFB companies is that we only completed that process very recently.

GKahn - why are you so afraid of finding out about the company you claim to be invested in ?

So Earl you reckon that you can produce Vanadium for a 'fraction of the cost of other producers' - do you mind letting us know what precision fraction that is and at what scale of production it is achieved.

Libero - I am buying Bushveld out, bit by bit, and I only had to spend 12.3p per share

keep at it Pdub you've got us all behind you.

and again at 3:20 "truly we've got to get on with the new procurement (of energy generation facilities) and this is not, in my view, going to come from Eskom"

all points to self-generation, which will inevitably have to be backed with battery assets.

The real growth in Vanadium usage is going to come from VRFB electrolyte - that is why this company put out that hot-air patent stuff at the start of the week so that they could get the 6M shares they placed out the next day sold to punters at significantly higher than the 8p they sold them for.

Steel doesn't need any lower cost Vanadium 2/3rds of Vanadium used in steel is produced as a by-product of steel smelting already.

also at 1;55 " now is the time to stop pussy-footing about this matter. I hope the minister for Energy is watching this, I hope the minister for Public Enterprises is watching this, and I hope they get the message."

Nice video floyd - at 1:40 Chris is completely clear " we need low cost Wind, Solar PV, Battery Storage and gas to power"

Hazbeen - I think you need to be more specific - VRFB flow batteries are a distraction for THIS company but they are not for other Vanadium producers who already have well advanced integration with VRFB battery manufacturers. I can think of an obvious example of this and another obvious example who talked a good integration but who ultimately failed because they didn't actually have an operating Vanadium mine when V priced were speculatively pushed above 100USD/Kg starting mid 2017.

The point about VRFBs is that they are really very simple devices but 35%+ of the cost of the battery is the cost of the Vanadium in the first place. This is completely unlike any other battery technology where the cost of the input materials is low but the skill and expense is in building the very complex manufacturing lines that bring them all together into an operating device. This dependence on Vanadium cost has traditionally been the achilles heel of VRFB batteries - how can anyone be a VRFB manufacturer if your cost base can fluctuate by 100% in less than a year ?

The 2017-2018 V price spike pushed a number of VRFB manufacturers into very difficult positions and this has led to a number of them being snapped up by a leading Vanadium manufacturer.