RE: Leasing contract of vanadium11 Jun 2019 20:11
Bushveld accounting is likely to become very complicated. Vametco will need to sell the vanadium at market prices so there employees are treated fairly re bonus structure etc. Who will own the vanadium from there, Bushveld Minerals or Bushveld Energy?Either way because of Leasing ( unless an independent third party is introduced & I expect this for a variety of reasons) the Vametco profit will have to be stripped out of consolidated results as it has not been realised. Also our successful growth, assuming it happens quickly will put a real strain on cash flow. The more I think about it the more certain I am that we will not go alone on the Leasing model. It’s not what we are there to do so I look forward to future developments becoming clearer.