The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
......After spike and pullback. Looks like a few getting in to ATM again yesterday
https://markets.businessinsider.com/commodities/tin-price
https://twitter.com/LHongqiao/status/1366759634275622922
Looks like the Chinese government are making storage almost mandatory for any RE connecting to their grid.
"Specifically, grid enterprises "must" give the guarantee on grid connection for the newly installed capacity under the target, so as for the other marketized RE capacity (condition: if they implement supporting market-based energy-saving, storage, and load adjustment measures)."
Beginerman, You kinda answer your own question. We know there is/are sellers but are less certain about buyers. Buyers in size definitely don't want to be flagged up or they end up having to pay more. MMs can walk the SP to almost zero or reverse spread (like today 19.1/19.099) to allow big tickets to be printed and no one can call buy or sell. Personally I think the PI trades have been a lot of froth for a few days while something is being worked in the shadows. Both max buy/sell sizes have been unusually low. The 2 x 1m MM trades after hours yesterday indicate some activity being required to plug a gap. AIMHO.
With key players like Eskom's De Ruyter promoting renewables plus storage in SA, the main hurdle is still Mantashe. He is the guy in the pub after 6 pints who is busting to go to the loo but holding out because he know he'll be going all night once he breaks the seal. Fingers crossed the seal is close to breaking.
Caveat emptor, All IMHO and complete speculation, based on yesterdays trading patterns and todays start, I think we may have a seller happy with 18p+ and a buyer at 19p-. The MMs are not happy with the upward pressure on the SP and are throttling buys and throwing in a few sells to try to knock the bid which widens the spread giving them a few quid more. The real bid has moved from 18.5 to 18.85 so far today yet the Ask isn't moving and max buy is 5k. A little more pressure or the order gets filled and we move hopefully. GLA.
Jogj99, I'm inclined to agree re departures. Their shares were supposed to be vested for 3 years to July 2023 initially, then revised to 50% for 12m and 50% for 18m. Why would they be allowed to sell early unless they are moving on.
Odd moves at the close. Could sell 100k @ 18.95 or 200k at 18.65 while max buy was 18.99 for 50k. Looks like someone didn't want it closing at of over 19p. Any late reported trades will be interesting to call as the bid/ask crossed a few times.
Lindon, It's also better that this comes out now than if we were further down the road with them. Looking at the 2GW mitigation tender bidders, there doesn't appear to be a shortage of companies interested in this type of work. I'm sure this has been flagged for some time to all Abengoa business partners including BMN and they would have been taking steps to mitigate any concerns. The Mini grid was to be BMNs showroom so I'm sure FM will want to push ahead with it. Also one of the other SA companies in this area may just take over some or all of Abengoa's SA operations and projects.
Hi gshivers, They are currently working on the magnetic separation system to isolate the tantalum so not shipping any yet but hopefully soon as they have just signed an offtake agreement for it. I may be wrong and am happy to be corrected but from memory I believe they expect a ratio in the range of 1 ton of Tantalite for each 6-10 tonnes of Tin and the going rate to tantalite is over $100k per tonne. This would essentially be close to zero cost so 90%+ profit. Further down the line they also have a significant Lithium deposit to monetise.
I suggest reading the recent offtake related RNSs and the operational updates.
Cheers J
IMHO, If they get their toe in the door there looks to be a series of local BESS projects spanning the next several years. These could take a significant chunk of BMN annual production. If the electrolyte plant is running then everything stays within SA for these projects which should reduce lead times and cut some costs, increasing profits and cash flows. More predictable cash flows should allow for capex and possibly dividends to be planned more easily. Also taking more V out of the steel supply chain should help push or keep the V price higher hopefully, allowing the likes of BMN to strike appropriate forward agreements at V prices that don't hurt VRFB deployment.