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Spangles have noted the lag in V prices realised in the interim results so your $20m is probably rolled into Q3.

Orion are in for $40m at 17p and they wouldn't have authorised the reallocation of the PFA if they didn't think BMN could make ends meet.

Hintza got sucked in.

Get your tickets, last call, get your tickets...

Your sentence makes no sense. BMN produce vanadium not batteries...

No way the SP is where it is.

Because in 2-3 years time BMN will be churning out at least 6,000 mtv and costs will be sub $20 and those who can see the wood through the trees today will be laughing at todays prices.

It really is that simple.

Granted, the EBITDA loss was mostly down to ZAR/USD exchange rate movement.

Most economists are forecasting the rand to weaken g/f as developed economies tighten their fiscal belts (such as the FED/BOE). It has already moved quite a bit recently.

Q3 won't be loss making production should be c.1,000mtv, assuming an average realised price of $36, that will be 75%+ of h1 2021 revenue in half the time.

There is no reason to suspect we will stop churning out these production levels until kiln 3 is up and running?

At least $35m in the bank, $18m on expansion, $5m to Dufreco in Nov what makes you think they will need to raise cash?

Once kiln 3 is online the profits will be rolling in even at these V prices...

https://fal.cn/3ix70

On at 12pm (S/A time). Gwede Mantashe opened the conference this morning.

The IDC is a not for profit organisation Pdub so one would expect them to provide cheaper finance when they approve their funding projects.

A bit like a housing association which may offer a tenant cheaper rent but won't necessarily give them a property to live in.

As things currently stand from memory the IDC has taken a 45% equity stake in BELCO as consideration for part financing the electrolyte plant.

If BMN want 100% of the electrolyte profits in due course one would expect they would need to buy out the IDC, presumably at market value or maybe slightly less if the IDC receive the principal sums borrowed plus interest.

That's how I see it.

The U.S. Department of Energy (DOE) today announced $17.9 million in funding for four research and development projects to scale up American manufacturing of flow battery and long-duration storage systems. This funding will help provide the materials needed to expand the grid with new, clean energy sources, deliver affordable electricity to disadvantaged communities, and help reach the Biden Administration’s goal of net-zero carbon emissions by 2050.

“We’re moving at lightning speed to harness renewables and access to long duration storage is critical for dispatching this clean energy for use whenever and wherever it’s needed,” said Secretary of Energy Jennifer M. Granholm. “DOE’s investment to boost battery storage technology coupled with our first-ever Energy Storage for Social Equity Initiative will help generate jobs, build more resilient communities and ensure cleaner, healthier for all Americans.”

Flow batteries are electrochemical batteries that use externally stored electrolytes, making them less expensive, safer, and more flexible and adaptable. Selected projects will work to improve manufacturing processes for individual flow battery components and integrate those new or improved components into a prototype system with a mid-sized capacity for grid and industrial applications.

https://www.energy.gov/eere/articles/department-energy-invests-179-million-long-duration-energy-storage-technologies

Profits on electrolyte manufacturing will be split with the IDC so I don't see that being a big money spinner.

We'll make more on leasing vanadium assuming there is sufficient uptake.

Cellcube combined BESS with Power Projects India:

Our pleasure to announce that we have bagged a project in Philippines to model Battery Energy Storage System for dynamic studies. The scope includes preparing the dynamic model and user guide for the the following BESS and fly wheel

1. Tesla Powerpack
2. Delta PCS with CATL Battery
3. CELLCUBE PCS with Redox flow batteries
4. Amber Kinetics PCS with Flywheel

This combined system is going to be installed in distribution system for multiple applications such as

1. Peak shaving
2. Renewable smoothing
3. Spinning reserve
4. Voltage support

https://www.linkedin.com/posts/power-projects_renewables-energystorage-batteries-activity-6845963243576532992-_1mC

Ben - It is about raising the profile of the VRFB sector/technology and we need bigger players to step in to help commercialise the technology to demonstrate it is safe, reliable, cost competitive, efficient etc etc.

The Chinese won't be a competitor to BMN the market opportunity is massive even with what Dalian is proposing is a drop in the ocean 2GWh per annum is nothing given the amount of long term duration storage that will be needed to meet climate change commitments by countries all over the world.

BMN are focusing on the South African VRFB market which requires beneficiation to the SA economy in order to win contracts, I don't even think the Chinese can apply! Also apparently transporting electrolyte globally is expensive...

Do you really think the PRC are going to be keen on exporting VRFB's/Vanadium once they have the ability to resolve their own energy storage needs right on their doorstep?!

BMN already has electrolyte orders, FM has recently stated that very clearly.

And if I may put that into context, China consumed 60% of global vanadium production in 2020 (which equates to c.67,000 tons of Vanadium - Per TTP from the recent Vanitec webinar).

My understanding is that 1mwh of electrolyte requires 5.5 tons V (which equates to 9.25 tons of V205).

Therefore this new deal is ringfencing c.12,000 tons of Vanadium (20,000 tons V205), which is approximately 18% of China's 2020 vanadium consumption solely for flow batteries.

Hence why Roskill state in their recent update "This represents a new precedent in vanadium market dynamics and has been reinforced by vanadium producers planning to vertically integrate mining and recycling operations downstream to VRBs."

Hopefully that clarifies why some investors on here are getting excited by the magnitude of this news.

Ben

See below -

Pansteel signed a cooperation framework agreement with key domestic vanadium flake supplier Sichuan Desheng to set up a joint venture focusing on processing vanadium ****. Pansteel will contribute 65-70pc of cash capital, while the remainder will come from Sichuan Desheng. The joint venture will build a vanadium **** processing facility with 20,000 t/yr vanadium pentoxide equivalent of capacity.

So the Chinese state ARE ringfencing 20,000 MTV205 per annum specifically for VRFB usage via a new processing facility.

Yes Lindon is correct no direct deal between BMN and BNM for now but the convo clearly shows how well connected the key players in this space are and Fortune is right up there.

China is king when it comes to battery manufacturing and they clearly know it makes sense for them to service their grid storage needs via VRFB's given the resources they enjoy at home.

The big deal is that the largest steel/vanadium producer in the world (Pangang owned by the Chinese state) has agreed to supply V to Dalian Bolong (BNM)) who can make electrolyte on a mass scale and jointly they have agreed to commercialise VRFB's.

The side story is that Fortune congratulated BNM on LinkedIn and the director responded saying that together they (BNM and Pangang) and BMN should work together to commercialise the VRFB opportunity.

Clearly Fortune is very well connected globally to all the key players.

As he recently said, big things brewing, stay tuned.

I think you may be confusing BMN with BNM....

Not sure you can think you need to be a member.

Search for Jerry Qiu and you'll be able to see his post re the deal and his comments.

Helpful for the short term Mogwhy but what got me excited over the weekend was seeing (via a link shared on the Telegram group) that Fortune and one of the directors at Dalian Bolong were talking about working together to support the vanadium flow battery industry going forward.

Noting Dalian Bolong have just signed an agreement with the largest vanadium producer in the world (which is owned by the PRC) to secure v205 for their expansion plans.

The SP doesn't currently track V prices so no point trying to use that as indicator.

Way too much potential to summarise here I'm afraid.

Keep an eye out for Q3 results after EOM and take a view then but don't be surprised if your re-entry point is 10-15% more.

Jelly11 - He's hardly bragging is he...