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It wouldn't let me reply for a while but this is great stuff and I'm befuddled why it hasn't had other comments or more likes. Maybe I missed something!
But get in there Mikhail. Anyone that can't see how BMN are front and center in the massive renewables to energy storage market, across Africa and India as themselves, and across Europe and America with their partners, must have some serious blinkers on.
Talk of the current (and still profitable) V price are very short sighted. Looking for the simple and easy to digest bobbins rather than the complicated truth.
Luckily I have patience. I would like to see the companies achievements recognised, very much so, but it is clear as day that that time will come. And I'd much rather be invested in a company building something incredible with an honorable, skilled (really quite amazing) management team than one that ramps itself up to siphon big pay packets for the directors with inflated placings.
All IMO of course.
E: You will note you post was removed. And quite rightly so. If you do not understand how what you said was a direct instruction (and therefore financial advice) then I don't know what to say. I presume you will now happily retract your fake news comment? And clarify with a reply of "oh you are right I did not realise that is what I did!"
As for the rest of your comments whatever dude, if you make money good for you. If you have actually been able to accurately predict share price movements recently then that's truly amazing. Myself and many others strongly believe in the company and it's future and want to back it. Backing it does not involve buying and selling (and no doubt - for stupid old me at least - losing money playing the games of people who simply do not lose).
I won't engage with you again unless you do something quite obviously wrong (like giving financial advise!).
E: I was just about to pull the trigger on filtering you. My very first filtered person. I genuinely didn't think i would ever filter someone. But Instead I reported you for giving financial advice, something I'm pretty sure you aren't qualified to do. Hopefully get at least a little of your nonsense removed. And I won't bother filtering you for now.
I read into it the board expects big profits and Yellow Dragon think the share price is super cheap and are expecting it to rise considerably. It removes any doubt or burden on us of a big payout (and a big percentage of profits) for a small dilution now. Again allowing us to use our cash to grow and expand rather than being burdened with future payouts. it all looks good to me despite a small amount of dilution.
Dilution has always been kept to a minimum and that continues. As long as the dilution facilitates further growth I am happy, and I have no doubt that will again be the case here.
yes and they are giving them shares INSTEAD of giving them the share of profits right? The previous deal was share of profits. They are settling that early with some cash and some shares now.
This looks like another significantly good deal for us based on the current share price and a significantly good deal for Yellow Dragon if the share price was to rise considerably between now and 2021.
Just wanted to chime in with my own congratulations to Fortune and team for yet another amazing deal. $14.5m discount is equivalent to 21.32% off the full price.
Payable from cash, whilst still keeping free cash for futher activities, and loan notes with just a 5% fee per year and no payments guaranteed for a year. What's not to like? The dilution is minimal and will (hopefully) be extremely negligible in 12 months time. The value of the business to us, the free cash this deal allows us to hold, and the 21% discount, is worth significantly more to us than this slight dilution will ever cost. Even if they were to convert today at 25.65p a share it would be <90m shares or 8% dilution.
But they can't convert today, and if we don't use the capital we have saved to push the share price far North in one year, when half of that becomes due, never mind two years, then I will be very disappointed.
It frees up cash to allow us continue making progress in other directions and reflects current vanadium prices to get us the best deal possible. The process of acquiring Vametco right before the V price rise and that giving us the money to get where we are now, and then expanding our operations when the V price is low AGAIN and getting large discounts AGAIN. A low V price that we shouldn't forget facilitates VRFB takeup, our major growth driver.
I'm just in awe once again. Amazing stuff! (my apologies for any maths mistakes)
@pb940 I think this is something that newcomers, outsiders (and random bashers) truly fail to appreciate.
The number of times things have been promised and delivered over the last few years I've been here is astonishing. Barriers removed, growth delivered, time and time again. Yes there have been a few mistakes but never once anything I would consider slightly dishonest, and lots of things that are clearly in the very best interest of the shareholders. Sadly, even acting in the best interest of your shareholders is a very rare thing on AIM.
And very nice to have confirmation that the purchase is fully funded. But did any of us really have any doubt about that?
I would say it's likely now that the foolish / traders / weak holders have sold. We are clearly nowhere near the right SP just now, even after the rather quick >30% rise we have just experienced.
Personally I don't have much regard for the share price movements overall. The company is making incredible progress. The value will be reflected at some point: now, tomorrow, after Vanchem, after Eskom, after Elocrolyte manufacture starts, after Mokopane is being mined, who knows. And it doesn't matter because each of these events is just another block on the way to a building a company that will be worth billions in a few years time.
I'm not sure I understand. The SP Angel broker note is valuing BE and Lemur etc as they are now. It is valuing Vanchem as though it has completed but that seems to be the only thing taken for granted, and it will take a long time for Vanchem to reach full potential at which point it will be valued higher. As will BE.
Giving no value to future things, in a growth company, can't be right. They are investing heavily in the future at every step so investment being deducted from profits to fuel growth should most certainly be factored into a valuation.
To quickly put it another way. If, instead of buying Vanchem, they had chosen to pay us a dividend, would that increase company value in the markets opinion?
"We value Bushveld’s ownership of Bushveld Energy at 8.8p/s and we have adjusted our valuation on the other assets within the group to 5.4p/s."
So let's put Vanchem aside for one moment and not include it at all. Staggering isn't it that, if those numbers are accurate, the markets current valuation for Vametco is ~6.3p a share. Multiplied by shares in issue gives a market cap of £70m. For a company with zero debt and revenue figures as above.
IMO the market is massively undervaluing Vametco, Vanchem, and assigning no value at all to BE or anything else.
https://www.autocar.co.uk/car-news/new-cars/amazon-orders-100000-electric-vans-start-rivian
With so many initiatives underway to increase our reliance on electricity, and so much focus on generating that electricity from renewable sources, the demand for large scale on grid battery storage is going to be ridiculously huge it is as clear as day. And then there is the huge opportunity in off grid storage for remote communities, large companies, mines etc.
It's insane to me that a company with so much potential, with a fantastic honorable BODs, generating significant profits as a low cost producer, with a history of making incredible deals and delivering astonishing shareholder value, expanding capacity and set to become a front runner (or at the very least a significant player) in the above energy storage explosion (an emerging industry estimated to be worth $13 billion within the next 5 years), is valued on such a pitiful PE.
https://www.globaldata.com/global-battery-energy-storage-market-to-grow-by-7-to-reach-13-13bn-by-2023-says-globaldata/
I have absolutely no doubt whatsoever that this will change. I'm topped up to the gills (and underwater despite being here since 8p) and ready for the situation to reverse. Tick tock!
Ooooor ... they will continue to deliver on the promises they make (they are already about to deliver) and continue to expand into a major global cosmetics / life sciences company. They are supporting and growing Skinny Tan, have very successfully launched and are growing Roots, and are attempting to grow several other brands and products.
Yes they have made mistakes but that interview was much more grown up and that seems to be reflected in the company, its promises and its performance.
I could, of course, be wrong. But I feel sentiment will start to return starting with confirmed delivery of results. With the results about to be announced with very promising revenue, and profit!, growth - delivered as per guidance - this feels very undervalued! Suppressed for sure by previous mistakes. Totally understandable why it is where it is. But never recover? We shall see!
The price may have got ahead of the markets ability to appreciate it but that doesn't make it overpriced, even at 50p. And the current price is a gross misprice.
Fortune and Co have delivered (massively) every single step of the way so far. They have behaved with honesty, integrity and with great respect to their shareholders. They have a grand vision, a plan to deliver it and I, for one, have absolutely no doubt they will do so.
People defend the company vehemently because they believe in it. They believe in the BODs ability to deliver and have researched enough to know the market opportunity that is opening up for us.
They respond badly to uninformed numpties who come in spouting nonsense, sure. But we shall see who the idiots are when the journey is complete. It's a marathon, not a sprint.
I am in the same boat, topping up all the way down from 35p actually and leaving my initial small buyin at 8p, that had significant profits, at a loss. And I'm still adding now with one last significant (for me) bullet left to fire.
The thing is that the current share price, whilst frustrating, absolutely does not reflect the progress, or pofit, the company has made. It does not reflect my own personal experience of Fortune and the way he and the company treat shareholders (vs almost every other company). And it certainly does not reflect the huge opportunity in VRFBs and renewables, of which BE is sure to take a slice and, even if it didn't, just their existence creates a growing market for our (expanding) range of products.
So I actually firmly believe that all of my purchases have been bargains, irrespective of these (absolutely ridiculous) short term movements.
What a fantastic read. Know I'm not alone in thanking BBN and Ophidian for the conversation. I've been around a reasonable amount of time and truly have the utmost trust in Fortune and team to deliver. I also took the update to be a great show of increasing stability and control and have used the suppressed SP to continue to add to my holding (I'm approaching 250k shares, although my first lot was bought at 8p).
But it is still great to read someone who has performed far better analysis than me put his research out there. I had my own numbers estimated but this is a significant more thorough than mine! Thank you for cheering up my Tuesday!
There is a redirect happening from www.bushveldenergy.com to www.www.bushveldenergy.com. Server misconfiguration adding a www. on no matter what. DNS lookup is fine pointing to 197.96.184.138. Really hoping for an update but the current situation is a mistake, not down waiting for something.