Member Info for Daisan

Andyforster,

Really looking forward to the drill results from Beutong, particularly the deep drill. I am a bit cautious about drawing any conclusions from the results of the first full hole (as opposed to the first hole which terminated early) as this was drilled at an angle. As such, whilst it got a decent intercept, it was not indicative of the mineralisation at depth. The big drill should be targeted deeper and you can see from the video footage that it is being drilled at a very steep angle. Let's hope it drills to 1000m+ (although I seem to recall that they were targeting 750m and Steve wanted to go much further!) and we get near 1000m intercepts from surface! Well, we can but hope.

If BMN's Q2 is anything like the Q1 reporting (and, sadly, I expect that it will) then we will get production numbers, MB average price for the quarter and costs. This is enough to roughly work out revenue and EBITDA. I say 'sadly' as the Q3 reporting last year was more comprehensive (including revenue and EBITDA) and I see no reason why this should not be included.

kevkan,

They are simplifying the debt and it is now easily supported given the production increases and price rises. It is still, however, debt and will need to be paid down.

It is worth considering that at $20/lb, the Mokopane PFS suggests a POST TAX NPV of $1.693BN. Yes, that is BILLION. BMN's share of this is now $1.083BN.

Also consider that the PFS was for a small production volume on a part of the asset to ensure that it didn't upset the supply/demand balance of Vanadium. The market could support considerably higher production levels currently. The NPV would grow more than linearly as some costs could be spread over greater volumes. Big numbers.

I work on the basis of applying no more than 20% of the value of on an asset at PFS. Get the mining licence and this unlocks up to an additional $200m+ of value for me.

"The restructuring of our debts along with the most recent posted price range of V2O5 for the week ended July 13, 2018 of US$18.90/lb V2O5 to US$19.85/lb V2O5 (as reported by the European Metal Bulletin)".

Wow. I haven't seen figures for V2O5 quite that high yet. Pushing $20/lb.

Beutong is certainly an asset that would catch the attention of a major, although it would benefit from being somewhat larger. If the ore body is proven to extend beyond the known boundaries (e.g. east and west are indeed connected) and, more significantly, the deep drilling indicates that mineralisation extends much deeper than previously considered then majors will start circling. Given the fact that Beutong is very much a separate project, it would not be difficult to JV or sell this as a standalone entity.

In the long term, I confess that I am far more interested in KSK. I believe that there is much more to find there and that the currently known ore bodies are just the hors d'oeuvres. If we can JV Beutong and let someone else carry out the development in addition to a bit of cash then we can focus on KSK and really find out what lies beneath.

An excellent update. The transition to the new pit has been nothing short of astonishing and the workforce are to be congratulated for their efforts. Now moving into a zero debt period and considering dividends going forwards. Obviously a lot depends on the gold price and the Government will soon get a greater share but the outlook would appear promising both from an production and an exploration viewpoint.

PennyPusher,

A couple of points. BMN own 59.1% of Vametco so this needs to be taken into account. Also, PE ratios are calculated on post tax profits so tax would also have to be removed first. Which would still make it over £4.

I suspect that this is merely dripping the sales into the market to prevent a greater fall associated with a large sale rather than someone attempting to control the price.

Thanks Andyforster. I thought that I had read that release carefully!

Wogen don't care about the performance of the company. Their holding is purely technical as part of the receivables financing deal. They will sell irrespective of whether the market, you or I believe that the share price is going up.

It's an excellent and very wide ranging interview which I recommend people watch.

http://www.proactiveinvestors.co.uk/companies/stocktube/9858/bushveld-minerals-still-greatly-undervalued-ceo-fortune-mojapelo

Well, when you have a significant holder cashing up that doesn't care about the business at all then you are likely to experience a temporary blip. We have had it before (several times) and we will have it again. The legs up tend to be stronger than the legs down.

It looks like prices have finally been updated on www.vanadiumprice.com and they make for eye catching reading. I tend to think that these prices lag slightly as well so in all likelihood they are higher than this currently.

Yes, I understand that pablo2. My point is that this is likely a wild underestimate given the level of exploration and the fact that it is increasingly looking like Chaarat alone will potentially produce a significant chunk of this.

ADVFN. I can't make head or tail of III any more. Casual47 is the one who posts the most but he didn't go either.

I must have missed the reference to magnetite. Do you have a link to when Steve referenced this?

Whilst a share price will certainly rise on the back of the commodity it produces, for Vanadium producers the price rise is potentially capped by Vanadium's history of spiking. Even though the outlook is positive for higher prices than the historical mean, a great deal of financial resources will sit on the sidelines until they see that the prices have stuck over a longer period. Clearly the analysts think in this way and so will be hesitant to suggest otherwise. That said, the current year forecasts clearly need amending as the 2018 average is now pretty much impossible to achieve (prices would have to collapse now). I am in the camp of those who believe that we will see $100/kg for FeV this year on the way to new record highs within the following year. I do not expect this to be maintained over the long term but I do expect the price to be stabilise well above historical averages. The next 2-5 years is when BMN needs to make hay whilst the sun shines. The earlier the better for those production increases.

I doubt that there has been a leak - this has been drifting down for some time. A transaction has gone through at 1.37p. I haven't seen the size but given the very low volumes it would not have to be too great to cause a bit of a blip. Published spread is a bit on the ridiculous side.

I found it rather strange that the Vanadium page should have no mention of rebar. Indeed, it doesn't mention the term but it does have as the main use the strengthening of steel which I think is fair enough.