RE: Eskom tender5 Aug 2020 12:35
@Snott - all the answers to amounts needed are regularly posted and calculations are on The Bushveld Perspective.
As for the electrolyte value add - who knows, but there was a discussion a few weeks ago that suggested a vanadium price of $30 and an equivalent electrolyte cost of $50, but who knows. I personally would not expect large installations to buy the electrolyte but to lease it. For smaller applications (I am guessing the small container 50-100kw variety) then full sale will be the order of the day as leasing admin costs may well be high proportionally, but for larger installations then leasing is surely the majority way to go.
And just line the automotive world, the OEM sells the product on to a leasing entity. Bushveld Minerals and Busheveld Energy will not be financing and carrying the risk (would make no sense to me). The third party 'Bushveld leasing' entity raises the capital to purchase the electrolyte, and charges a leasing cost. I would expect an element of the profit to find its way into BE ultimately.
It is the way more than half the automotive world operates - anything other than this way the cashflow and risks would bankrupt most OEMs very fast.
There is a great BE upside, but unless (as I don't expect) BE actually raises the finance and does it all, then best stop thinking of a pyramid of exponentially growing cash flows .. just solid growing cashflows and profits with limited risk.... it is a dig stuff up, sell to BE, add value by making electrolyte and sell on business (with a future kickback of shared profit)
I could be wrong, but the astronomic sums in 3-5 years would give a real problem raising in a junk-status SA.. and why take the risk ?
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