RE: RNS Thoughts - Positives & Negatives - Strong Buy30 Jun 2021 21:46
In hindsight, BMN SP would have been better off being a pure play single vanadium mine with expansions at Vametco completed by now.
I'm not saying what's happened is wrong as it will allow BMN to be a powerhouse in a few years but the patience is tiring as I expected some return after 3-5 years. When Knuttie and Faramog used to predict Divi's in 2022, it seemed so far away but now I think I wish.
Vanchem seemed an opportunity at the time but nobody predicted the very low V prices, poor timelines with the Eskom BESS and a pandemic. Maybe the former 2 should have been considered by FM as a risk before purchase.
There are things that can be in your control so FM has underperformed on the Vametco side with year on year of lowered guidance and problems. Vanchem and other ventures have been his priority and It seems he has hired someone to finally maintain operational performance at both plants. Hopefully he has finally learnt from his mistakes and can achieve a positive RNS where something has gone to plan where targets achieved from maintenance/guidance/Belco and mini-grid on schedule.
If a sole Vametco was at full capacity expansion and efficiency by now because we did not buy Vanchem instead, then company would likely be producing more than now, paying Divi's and the production costs would be < $20/KgV. They would have made a profit during a pandemic, all while playing the VRFB game on the side (i.e. still waiting for Eskom and mass scale uptake).
I know I might get negative feedback but in hindsight don't some wish that was the case right now with an SP over 50p and no debt/dilution.
PS. I won't be selling but adding in my SIPP as it is a longer hold than I would prefer.
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