RE: BMN Financial Position & Future Effects1 Nov 2019 11:31
BBN...many thanks for your detailed financial assessment. Knowing what we now know, I wondered if you had any thoughts on the following my post from early July 2019 relating to Mikhail's presentation slide at Vanitec which clearly relates to the three funding options for the Electrolyte Leasing.
https://twitter.com/bushveldmin_ltd/status/1148239403187412993?s=21
'Did any of you actually read the slide?
There is a lot of interesting information contained in it (see text below).
No. 1 appears to be the ‘to get us started’ – was this used for the recent US deal?
No.2 or was this used for the recent US deal since BMN didn’t supply the Electrolyte – but did they supply the Vanadium from which the electrolyte was produced?
No. 3 is extremely interesting and could this in anyway be a consideration for say a future ESKOM type deal? With a BMN JSE Listing such a fund could easily be set up.
This is not just a vanadium battery storage fund…this is a BMN vanadium contained in the electrolyte fund…big difference guys…!!!!
For BMN to have put all three Funding scenarios up, surely they must be more than ‘day dreams’…
If I was cynical, I’d almost think the last few hours of chatter were diversionary!!...
SLIDE TEXT:
1.Balance Sheet Supported
Funding Source:
-Initial Rents to be funded by Bushveld Minerals (BMN) for ease, timeliness and to de-risk the product.
-BMN can use own funds or a third party finance provider to support product.
Risk Aspects:
-Risk assessment is strict, permitting only developed economies and those with BMN operations and large or listed counterparties.
-Lease pricing and structure designed to fit that of a bank-financed SPV from start.
Facility Size:
-Small to Medium
2.Bank Financed SPV
Funding Source:
-Evergreen facility with automatic renewal assuming continued adherence to loan covenants.
-Funded by a commercial or development bank, secure by cash-flow from rental payments and title to the Vanadium electrolyte.
Risk Aspects:
-Limited guarantee to cover Vanadium price fluctuations that may devalue the underlying collateral value.
May require commitment to repurchase electrolyte at a minimum value
Facility Size:
Most banks require a minimum size of +/- $10m to make it worth their while.
3. Vanadium Investment Product
Funding Source:
- Vanadium-based fund product to allow investors to invest directly in Vanadium prices.
- Fund’s balance sheet consists of Vanadium contained in electrolyte deployed across different sites and VRFB technologies.
- Fund includes and annuity-style revenue stream tied to rental.
Risk Aspects:
- Design could be bond, EFT, listed fund for liquidity and investor access, cryptocurrency etc
- Fund portfolio structure further de-risks location or end-user specific risks.
Facility Size:
-Much larger in size with almost no maximum limit.'
Sign In
Follow the stocks
