BBN POSt8 May 2019 12:27
I'm sure BBN wont mind me reposting this one. Always good to read back over stuff i find...and to ignore the trolls.
BMN is a very solid and strong medium to long term investment. The days of trying to get into production when prices were against us are long behind us. That problem is now somebody else's and their future struggles will be to BMN advantage.
This period we find ourselves we have seen before and it was far darker than this will ever be because back then investors were fighting for their financial future and the vultures were much bigger and much badder.
No two investing situations are ever the same. Fundamentals, moods, markets, all change. However, the strength of the position BMN now has to ride out any storm and take advantage of the rain it brings is momumentally better than when they were a minnow trying not to get eaten up.
That is what everyone seems to be forgeting. BMN will expand and grow and get better and cheaper at producing vanadium. If prices stay low they will take advantage of that be it through cheaper possible expansion that replaces pure plays juniors who cannot build, or through VRFB take up driven by affordable vanadium. It is win/win for a company with a foot already firmly in both camps.
Those shouting that vanadium is too expensive and needs to be cheaper for VRFB take up cannot have it both ways. When the price comes down the VRFB count goes up.
BMN is building the only electrolyte facility in the entire Southern Hemisphere and plans to expand it to be the largest in the world. The price of vanadium falling helps that.
BMN is tendering for the largest battery project in the world at Eskom. The price of vanadium falling helps that.
If the price of vanadium rises then the ability of the electrolyte and VRFB arm to win work comes into question, if only a little. But then the profits from Vametco start to rise and the valuation drives higher based on pending larger dividends.
Somewhere in the middle would be even better and even more successful. If BMN and us poor old investors have to carry a year or so of 'reduced' profits to achieve it. If I have to stare at an SP of 20p 18p 16p for 12 months whilst I wait for it, do I really care? Will BMN go out of business? Will the pittence cost of the electrolyte plant prevent it from getting built. Will the BESS Project be lost? Will BMN fail to get to 5,000 mtv in anticipation of the next big vanadium wave?
No, they will not. . . and there lies the problem. Impatience and a mind hell bent on convincing oneself that something must have been missed.
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