RE: Proactive Investors - Fortune17 Oct 2018 12:21
one of the best interviews .... I felt he just wanted to jump up and scream 'look.. look'
- first time presenting consolidated numbers for incorportaing Vametco - profit 62m revenue ebit 31.7 profit 21m FCF 10m consolidated cash flow with no debt of 26M ... all based on average of $65/kg vanadium where now we sit at $110
- consolidated cash flow = cost of all the aquisitions and growth
- Vametco provides a platform for the journey ahead
- Phase 2 expansion complete - capacity to 3,750 MTV/pa .... next phase is to take to 5,000MTV by the end of 2019. total cost of production expansion is approx $18m but a small price for 2,000MTV extra production
- Brits - expect to declare maiden resource in Q1 of 2019. Along with Mokopane .. just vast
- Brownfield assets are the key to 10,000+ MTV and continueing to review options
BE
- Electrolyte facility on track
- on track for VFRB trial system at Eskon by close of 2018
- SA Government draft Energy paper - clear commitment to renewable energy... which must create storage opportunities - 70% of local content in plan ... opportunities for BE is immence
- VFRB ideal for distrubuted generation and intermittent generation systems
- Vanadium pricing at all time high create an interesting opportinity for BE. The solution is for verticle integration. Input cost is high and could make VFRB expensive only if you look from a capx pov. Vanadium does not degrade and and can be recovered and reused at the end of a 20+ year life - rentale/leasing is a huge opportunity to reduce the cost model and ironically the higer vanadium pricing makes this more attractive due to residuals.
- Demand side is strong and getting stronger with the new rebar standards in china. As other emerging markets grow (like India) then the demand will grow. This dynamic was not present in 205/6 at the last peak. There is also a structural supply side deficit issue and the supply just cannot respond sufficiently and with limited future opportunities. Hence pricing should remain strong well into the future. Fundamentals are just way stronger than ever before
- future - will make clear a dividend and distributions policy by end of 2018
- can balance distrubution and growth needs
- Provide a framework on value contribution of the energy storage elements (effectively just not valued in the SP now).
- future value for Bushveld is significantly north of where we are
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