Member Info for faramog

Jog .. how many VFRB box-makers are there now ? How many will there be in 1,2 3 years time ? The only magic is the stack and although there can be differences, there is no massive performance gap - so which one is the winner ?

Having our own box-maker is limiting, diversionary and requires a large and continuous amount of development capital

The strategy seems pretty clear:
- want to make steel - come to Bushveld Minerals
- Want to get electrolyte (or make it) - come to Bushveld Energy
- Wanna turnkey box - go to Invinity/Enorox (and whoever else we tie up with) who will get their electrolyte from BE - taking a capital stake gives us an additional VFRB box-supply profit stream ultimately .. on top of the leased revenues

BE is about making the electrolyte to sell or lease and bringing parties together to provide a vertical solution

We are gonna be everyone's friend !

Yes gambit....

Let's not forget folks what the Orion funding means..... A production increase of 50-60% fully paid for into a growing steel and vfrb market. Just some basic fag-packet numbers see our gross profit going up 3-400%

All factored in, paid for, captive market, de-risked.

Not many companies are in this position !

backhanders are illegal now ... so a nice low bar JSE listing will have to suffice !

they all raise questions ... mostly .. we don't yet know if we have won some or part of any of them

Apologies FB .. I thought you were an accountant.

As for the leasing details .. absolutely right - devil in the detail. Only leasing I had anything to do with was in automotive-land and the way the product (ie a car) was handled to protect revenue and cash-flow.

why JohnnyG ....

The full value would be depreciated on the balance sheet (or close too) over the lifetime - this means that the ability to dispose of or recycle is just a future variable 'sweetener'. No one can really know the intrinsic future value of Vanadium in 20 years+ ... just it is 'something', so unless you want the risk of a sudden balance sheet re-rate downwards (no one minds upwards) .... I think FB may know more as a retired Company Accountant.

Either way, if discounting up front reduced annual revenues (even if only of 2-4 years while building a revenue stream up), why do that - we don't need to

Remember ... most places can choose one of a many box-providers, but they have few options for where they get electrolyte from

erm ... nope on this "we're not expecting them to pay fair market rate upfront for the V "

I am expecting fair market value and not a substantial discount. Remember that the income stream is over years. Volume discounting and quarterly price fixing is all normal business, but heaving up front discounting is not the way for me as a shareholder.

Leasing transfers Capex to Opex and gives the end customer a great package anyway even if the electrolyte was twice the cost of Vanadium

No @jonnyG .... that is not how it can work. It ought to work very similar to Vehicle leasing (a well worn path that works)

Bushveld Minerals sells Vanadium at the going (or agreed) rate to BE.
BE then adds value by making it into Electrolyte.
BE then sells to the Finance/leasing house who then lease it out
- a revenue stream comes back into the leasing house that covers costs and the profit is split 50/50 with Invinity & BE
- Any subsequent recovery will generate a revenue after costs that would be split 50/50 again

Anything else would be barking mad and garner huge financial exposure, risk and short-change current investors

making them as welcome as they are LS !

Mmmh the post (and thread) I started last night pointing out the curries were back has been totally deleted ..

Poor little creatures

Up until about 18 months ago we maintained a voluntary PI holding list..I understand FM knew and at one point, with the interests he controlled or could rely on, well over 50% of shareholding was in the hands of less than 200 people or entities... A TO would have needed to be very high.

Now the shareholder base is a lot wider, but with the production increased funding in place, all the news and expectation, I doubt an offer less than 3 figures would even be passed by the BoD for vote. Hostile TO is equally difficult

But worth keeping TO in mind given how low ball the price is

infuriating isn't it Gambit .. its like our increase holding value in IES was subtracted from our MCAP

yes Jimbo .... we get all that businesses and non of the business risk.

As I pointed out a day or two back .... the Vanadium and Electrolyte supply has been very effectively de-risked - we have over the next 2-3 years a 75-100% increase in production, fully funded into a market where pricing will drift up .... where is the real risk ?

In investing, the Risk Free Rate (RFR) is often used in valuation and discounted future value calculations. Typically somewhere between 0.5% and 2% are used .. but with Bushvelds growth de-risked, what I wonder would be an appropriate RFR for viewing an investment in Bushveld ?

"There is kit on the water on the way to Bathgate" ... is that not what he said a month ago .... what is it... being rowed ?

its crackers ....

Tin contained in concentrate jumped 29% to 41.6t from 32.2t. This is 16% ahead of their stage 1 target indicating better grade also coming through

The mine also has an inferred grade of 85ppm of tantalum for 6,091t of material. Tanatalum 25% Ta2O5 sells for $50-52/lb (~$112/t).

So not even highly purified Tantelite gets $112 per tonne !
Great process improvement (yes some better ore), but looks good

Yes .. not going to be quick, but in past vids, AV has said it is straightforward (when we know that is rarely the case)... but the imperative to make it work is very high as revenue will be close to 100% gross profit.

When phase 2 is fully implemented (and we shall see where the investment comes from ultimately), and runs at 4-500T a month, tanteline at perhaps 10 t/month ... the revenue would be over $100m with a relatively low cost base.

ATM is more or less where Bushveld was 2 years ago...... just the phase 2 investment remains to be really clarified (the reality will end up being different to aspiration - maybe some Orion type deal will minimal dilution and lifetime revenue .... with Tantelite that really makes the deal attractive as it would naturally hedge tin prices

Tantelite is where stellar profit is... 1t sells for 150k.... And it's a tiny cost bi product if they can get the cell to work

Fire departments .... They are the way.

Politicians know diddle squat and will rely on advisors who know only marginally more.

But new installations need a fire safety certificate....if the people issuing them have these failures in mind then maybe the right questions will get asked

Fore a newbie joining LSE only a couple of weeks ago you really read the vast posting back 2 or 3 years and picked on RK and me as rampers.

Pull the other one..... Old troll in a new cloak ?

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