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The SP rise in 2018, which saw BMN touch 50p, was largely driven by the price of Vanadium so it's ridiculous to say it doesn't have an impact on the price. Does it have an impact on the ability for the market to attribute fair value? That's another question....
As Fortune has mentioned, the business model for BE and the VRFB platform isn't sustainable with high prices so BMN are positioned well with a moderate price for Vanadium, from a production perspective and also the battery storage play.
I've been buying in troughs (and unfortunately peaks) since 2016 and have been frustrated to see the SP drop from the highs of 50p to where we are today. It's been a painful lesson for me but I can't help but feel a new sense of optimism around BMN, after what has been a couple of tough years...
In my view, disregarding the potential of Bushveld Energy, I don't think the SP reflects true value of Vametco and Vanchem alone; both cash generating assets with room for production optimisation and increase...
It's been interesting to see the business develop from an explorer, to a producer, and one that is now set up to seek value right through the vanadium supply chain. It gets really exciting when you factor in the future growth potential:
- Increased production/output of Vametco and Vanchem (not yet factored into the SP)
- Ownership in mustang/cellcube and their order sheet (not yet factored into the SP)
- Electrolyte production coming online H1 2023 (not yet factored into the SP)
- Batter storage play (absolutely not yet factored into the SP)
I think the carving out of the BE platform is the smart play; 'Tech' companies like BE are valued by the market entirely differently to that of mining companies and allowing them to stand alone should allow the market to value them fairly (LOL, that probably won't happen but it's still a smart play imo).
Perhaps, in BMN's case, the sum of it's constituent parts are in fact greater as constituent parts, rather than as one.
Let's hope the market begins to see the value that is here.
Long and strong!
Yes, load shedding is a problem, an external problem that is out of BMNs hands. There are talks of load shedding in the UK, does that impact the value of all UK businesses?
If BMN can get the Vametco Mini Grid operational, that would be the perfect case study for the application of battery storage.
It could be a pure stroke of genius as BMN will have mitigated the impact on a country-wide load shedding scheme which should mitigate the impact on SP value associated with loss of production from Vametco/Vanchem. It will also highlight the suitability of VRFB battery storage in places where energy is in high demand. They'll be using their own cost- and energy- saving project as a case study to push out to the wider market.
A lot of 'could' there but I think it COULD be VERY EXCITING!
All in my personal view.
I've been buying in troughs (and unfortunately peaks) since 2016 and have been frustrated to see the SP drop from the highs of 50p to where we are today. It's been a painful lesson for me but I can't help but feel a new sense of optimism around BMN, after what has been a couple of tough years...
In my view, disregarding the potential of Bushveld Energy, I don't think the SP reflects true value of Vametco and Vanchem alone; both cash generating assets with room for production optimisation and increase...
It's been interesting to see the business develop from an explorer, to a producer, and one that is now set up to seek value right through the vanadium supply chain. It gets really exciting when you factor in the future growth potential:
- Increased production/output of Vametco and Vanchem (not yet factored into the SP)
- Ownership in mustang/cellcube and their order sheet (not yet factored into the SP)
- Electrolyte production coming online H1 2023 (not yet factored into the SP)
- Batter storage play (absolutely not yet factored into the SP)
I think the carving out of the BE platform is the smart play; 'Tech' companies like BE are valued by the market entirely differently to that of mining companies and allowing them to stand alone should allow the market to value them fairly (LOL, that probably won't happen but it's still a smart play imo).
Perhaps, in BMN's case, the sum of it's constituent parts are in fact greater as constituent parts, rather than as one.
Let's hope the market begins to see the value that is here.
Long and strong!
I've been following BMN since 2016 and it's taught me a valuable lesson along the way.
That the market cannot, or fraudently does not, value companies equally.
How can BMNs SP remain suppressed when so much value has been added along the way. After the rise in 2018, I thought the SP might be solely linked to the price of vanadium but despite recent prise raises, the SP hasn't moved.
How can a company be valued at less than the sum of its assets, and lets add say 1 years profit (not revenue!) for a buffer?
I'm at a loss as to how it's actually valued.
Is it just me?
You have to give credit to the MMs at times for the way they manipulate the bid/ask to tempt people into selling.
Great to see steady daily rises, which as a number have already mentioned, is much preferred over a large spike and sell-off. Have been a holder of BMN since mid 2016 which saw 2 years of fairly consistent gains, followed by 2 years of faily consistent drops in SP.
The rising V prices and the greater traction in the VRFB markets are certainly helping inflate the SP here but it does feel like the tide is starting to turn,
Smallest spread i think ive ever seen on the BMN SP, it's usually 10x what it is currently.
Interesting how the SP of IES has increased with the recent news and BMN continues to be suppressed.
When will the market open its eyes??
A question for those more knowledgeable than myself.
In the RNS it mentions that this project will be leasing the electrolyte for a 5MWh project. Does anyone know approximate commercial terms for such a project of such scale and how much physical electrolyte would be involved in such a rental agreement?
Would be interesting to have a reference for scale moving forward.
Great to see the VRFB platform start to take shape as we've been waiting a long time for such an announcement. Hopefully this brings more attention to BMN and sentiment changes.
50MW hybrid lithium/vanadium battery to be installed by Invinity just outside Oxford, UK So good to see projects coming online! https://energysuperhuboxford.org/technologies/battery-energy-storage/
Not sure if this has been posted but there's an article on the BBC about solar power and batteries get a mention!
https://www.bbc.co.uk/news/business-51799503
A frustrated conversation between me and the old man (both long term holders) earlier today has lead to the decision to top up. Let the MMs play their games, the Coronavirus outbreak has triggered a global market crash and has investors spooked but long term holders will only see returns (and good ones at that) from these levels!
Ride out the noise.
Your arrogance to say that the price of vanadium is what is driving this current share price is telling.
Obviously its a factor when vanadium is core to the success of BMN but you neglect to factor in that a lower V price is in fact complimentary to the BE story that is unfolding and lets face it, the SP has little changed pre- vametco, pre-vanchem, pre-mokopane etc. The bushveld energy potential has not yet been recognised which I believe is why there is frustration with the SP.
You'll find other AIM listed companies, O&G in particular, where their SP may double in one trading day on speculation of oil, regardless of how they may see that through to production.
Yet with BMN, the large resources, now 2 production facilties and huge energy storage potential, we see very little uplift in SP.
At what point will growth potential be factored in? Fm couldn't be clearer on the growth strategy.
I appreciate manipulation is being talked about which may or may not be the case but when you count the ducka that are lined up, ita difficult to put it down to anything else...
All my own opinion.
Long and strong and wait for the tide to turn.
Early doors still yet for today and the coming trading days. BUT how on earth does completion of an acquisition, confirming increased production with materials to feeD production, and therefore revenue, not directly effect the SP....THEN YOU FACTOR IN THE Q3 REPORT.... Criminal behaviour.
If we dont start to move north after 2 great pieces of news there's something seriously wrong.
You see news released worth in other aim companies that double the SP, which we've never had and its about time that we see fair value.
Hopefully this is the trigger.