Member Info for BenAlder

Been a busy year growing the company. SP to follow (eventually).

Also -

During the period we secured an indirect interest in VRFB manufacturer Cellcube (previously referred to as Enerox GmbH) of 25.25 per cent. As previously reported on the 14 July 2021

BE is not the be all end all of VRFB business for BMN. Enerox/Cellcube is pure vertical integration that many BMN followers wanted.

Also -

· Approximately US$12.7 million was realised from the sale of the investment in Invinity Energy Systems Plc ("Invinity") and the profit on the sale is not included in EBITDA. The profit realised on the original investment of US$5 million was approximately US$7.7 million.

The Group continues to sell vanadium products to Vanadium Redox Flow Batteries ("VRFB") Original Equipment Manufacturers and sold 9,000 kg V2O5 to Invinity realising US$0.2 million in revenue.

Vanchem is also 100% owned by BMN.

He also said, " As a result of using this existing PFA funding for the Vanchem capital expenditure of about US$18 million in the current year and in H1 2022, we remain on target for Group production to increase to a steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a. by the end of 2022. The increase in production will be the biggest contributing factor to a sustainable cost reduction, with Vanchem's unit costs expected to be in line with Vametco, when it more than doubles its current production to 2,600 mtV."

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"The operational stability and improved production performance achieved in the last two months of the period under review was carried through into the first two months of the second half, which bodes well for reducing unit costs in the remainder of the year. We are confident of maintaining this rhythm, putting us on course to meet our production and cost guidance for the full year.

2021 marks a rebasing for the Company which creates the environment for us to implement the changes required at the operations, which can sustain production and provide the platform for growth.

I think BBN is a tad over doing it. He’s talking profit/Loss. Ever heard of an overdraft arrangement. We have one as far as I know. A loss can be carried over, no big deal. The second confusion he is now sowing really comes down to BMN guaranteeing to underwrite Mustangs input in exchange for their shares if they fail to commit. The other investors will likely take a share and that will not happen. If it does, We will own a larger share of a battery manufacturer. One of the biggest. So win win for BMN shareholders in the long run. And people hang on his every word.

LB21 posted a link to an article last night. Interesting, this bit from the Largo boss –

“We’re very confident that we can make more money from batteries than from the traditional markets,” Vollant says. “We looked at the historical average price of vanadium pentoxide, which is about US$8 per pound and we translated that into a cost of storage for a vanadium redox battery, and at that particular point, we are much more competitive than lithium batteries, our main competitor right now, for…let’s say six to eight hours duration.” In June, Largo Resources held a “Battery Day” to highlight its strategies for entering the global VRFB industry. While vanadium pentoxide (V2O5) as an additive for steel manufacturing is indeed around US$8 per pound, in the energy storage business that same V2O5 could be worth more than US$12

Well done lad, nice timing. What are we going to do without you after 15p. Dont sell them all at once now!

@mogwhy - 29 Sep 2021 12:04 Last paragraph - “They will almost certainly need to raise cash to see the expansion plans through despite FM saying they were funded, unless there is a dramatic reversal in V price.”

“the uncertainty that exists ” That is why the SP offers an opportunity . Will the company go bust if they are loss making this year? Will they achieve their stated plans? Will there be a share issue and cash rise? That is the gamble.

My interpretation of ‘strengthening the balance sheet’ is reducing costs and selling an asset potentially. Prudent when profit margin is so tight. It does not rule out a cash raise, but that is not the end of the world, or the only option.

I’d rather we take on debt now then raise capital as we should be a cash cow in a couple of years. I’m sure the banks will ‘support’ us through this period.

Thank you DBB.

I think the man is headed for the door and knows it. FM is under pressure and I think wants to prove part 1 of the plan so he is confident of selling part 2, the energy side, and rebuild the SP with profits. His reputation is on the line to deliver this expansion successfully. Why open up more fronts to defend when you still have to prove you can achieve the growth in production to meet the other ambition. We can only speculate, but I don’t see it as a loss if we lose Mikhail.

I see the costs as the big brake on this SP and a forecast of $30 kg next year is disappointing but a profit can still be made. The big prize seems inevitable to me but always a little further away in time! ATB!

When was it dated?

These shares are so cheap even the traders are not talking it down anymore!

2 years ago BMN were looking for money and probably wanted to keep things focused on the mining story. Didn’t they recently say they would start announcing BE news separately again. So no news or still a black out? BE et al, can’t happen in earnest until BMN sort out increased production and build the E-plant.

It is all coming together. SP has to start reacting to some positive news from the company. So we wait for that.

Nice work guys but I’ll not get too excited by this news. My only take away is that this should keep V prices firm for a few years. Bushveld started its VFRB mission a couple of years ago, so I’m sure they all know of each other as it is a small industry. All just being friendly and gabbing some free PR, IMO.

They are our competitor and will likely undercut us on cost when they are up and running. They will have the advantage of scale and are getting V from sl*g as a by-product which is cheaper. I hope that Fortune is not thinking about some similar arrangement to fund a steel mill at Mokopane with them. I fear they would eventually eat us up, but it may appeal to some as it would surely raise the SP!

I do not see us working with them anymore than working with Largo, except to create an industry standard for electrolyte if that is wanted/needed. What I am seeing is V producers preparing for the VRFB market. There will be lots of competition in a couple of years. We need to use our advantage as an early leader in the sector while the Chinese are tied up for the next couple of years on State projects. We have to get our own clients and orders, and also get costs back under $25 Kg.

I’ll start getting excited when BMN announces some of its own electrolyte orders. Thanks for your views though!

Thank you LB21 for your clear explanation.

How would they work together? - Fix electrolyte prices?

The world supply will not cope if/when the demand for VFRBs takes off. China is a net importer now, so some Chinese consumption may be rationed for the State to build its showcase battery. Its a hell of a lot of vanadium. ATB!

Doh! Should have gone to spec.......! Wondered why they would do such a thing and it was not RNS worthy! Whats the big deal then? Lol!

So that suggests to me that either, BMN sees a need to supplement the volume of vanadium that they can produce themselves, to be able to meet potential electrolyte demand that they can see being needed over the next few years, or it is insurance. I think it is a contingency to cover and guarantee the ability of BE to deliver, and build confidence with its customers to be able to place orders with them.

Icarus flew too close to the sun because they said it was alright to do it!
Every share has a lesson to teach.
Buying at the top sucks.
I am entrenched but not in denial.
Do your on resurch!