RE: Investor presentation from BMN website today29 Apr 2024 17:17
I thought he was pretty straight talking .. a couple of my questions not taken, but basically without a substantial capital injection (my guess is £15-£20m) then getting to the point they are expecting Vanadium pricing to start decent rises ( this time next year) will be pretty much a non starter.
Since June last year vanadium pricing has dropped by over 30% (from a modest level as well)
In the end, his point was that both SPR and to a much larger extent Orion have put a lot of money in and would stand to loose a fair chunk of it. They all agree Vanadium pricing is historically low and see the cycle reversing ... do they want or have the cash to make the substantial returns happen
Survival must mean substantial dilution. They struggled with a fund raise at 3p. Not sure how successful one would be at 0.65p ... basically a 50% dilution to get £15m ... right now I would vote for that.
Frankly though, I am not that hopeful.... buggering about for fund raises is a distraction. If Orion et al cannot see the monumental change done at Vanchem and see what is coming at Vametco then we are stuffed.
Dead and bust in 2 months or has funding to survive and thrive are the two options I see..... and SPR will loose a lot. They do not have Mokopane or 50% of Vanchem and their loans to date are unsecured .... would they survive ?
As for Belco .. hand washed .. that place will close soon I think. the IDC won't really want to fund much more.
A good IM, but really just says .. if someone does not pony up a lot of working capital very shortly, then will the last one close the door on the way out
Largo also haemorrhaging cash and have been for months.. on a time limited mine. How much longer before that halt for a bit .. and if BMN is gone and Largo suspends ops, that is a lot of USA supply gone .... China would love that !
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