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https://m.engineeringnews.co.za/article/world-bank-says-flagship-eskom-battery-scheme-to-open-way-for-private-investment-in-the-technology-2020-11-19/rep_id:5581

"The World Bank reports that Eskom’s large-scale battery energy storage initiative, which will involve the installation of battery energy storage systems (BESS) across up to eight sites, is being treated as a “flagship” initiative by the global development finance institution, which has committed $1-billion to support the deployment of battery technologies globally.

...
"Speaking during a webinar facilitated by Nedbank, EE Business Intelligence and the Johannesburg Centre for Software Engineering, Verdol said the programme was being implemented as a demonstration project, with the aim of creating the platform for future private BESS projects in the country.

Battery storage, he argued, was not only a key enabler for higher levels of low-cost wind and solar photovoltaic (PV) penetration, but could also deliver other system benefits, ranging from grid investment deferrals to voltage and frequency control to support grid stability.

These value propositions, together with ongoing cost decreases across various battery technologies, would increase the commercial value proposition, especially in a country such as South Africa that needed solutions that could bolster security of supply in the short term and unlock its world-class wind and solar resources in the medium- to long-term.

Verdol added that South Africa was also almost uniquely positioned globally to participate in the full battery-storage value chain, that comprised mining and refining, manufacturing and, eventually, recycling.

“In fact, South Africa may be the only country in Africa where integration and industrialisation of the entire battery storage value chain is feasible,” he enthused, arguing that the efforts under way to create a more enabling environment for battery-storage industrialisation should be intensified"

DD, I know it's rather groundhog day at the moment but I would much prefer that than see the value of my investment fall which is what has happened for hundreds of other shares worldwide in the past month or two.

Honestly reckon most investors have lost money in the past 1-2 months during this weird time in the market so, in comparison to that, Bushveld has actually fared rather well.

And actually I'm very excited because I know what news is due to be announced and I know we will eventually re-rate to track the 20% of Vanadium price commodity increases we've seen in the last month or so.

Honestly feel like everything is going to come together very suddenly and very fast!

Brilliant analysis from BBN as usual !

He's spot on in saying that the BOD are being wise to under promise & overdeliver with the production targets. And actually, UNLIKE LARGO, Bushveld is on a very steep growth trajectory to 6,000 mtV in 2022.

It's evident that we will not be able to see evidence of this immediately whilst the business is going through the improvements at Vametco and Vanchem to boost their production capability. But we will start to see the effects of this with Vametco as early as Q2 2021.

This will mean that Bushveld becomes a "leaner, meaner" vanadium-producing machine, with DOUBLE the production seen in 2019.

Additionally it shall mean production costs per kg will ultimately fall to less than the $18kgV we've seen so far on average. Consequently meaning that profit per kg will increase, at the same time as production rockets over the course of this year.

All incredibly exciting and makes me even more certain than I was before that, in the long run, we will blow Largo out of the park with our production, revenues, and profitability of the mining business alone.

GLA & DYOR : )

Excellent post, Alfa.

They know the Electrolyte Production Plant is going to provide us a super reliable recurring and very profitable revenue stream.

Honestly can't wait to see it up and running!

Pickuzawinnah,

Great to hear from you. Must admit I've never considered Largo trying to buy BMN but can see why they would want to actually. It'd be way more value-adding to Largo shareholders than it would be for Bushie shareholders.

But then they would have to offer us £1bn at the bare minimum to even have a hope in hell of getting a majority of Bushie shareholders to vote for it. And actually I feel many shareholders including myself would vote £1bn down. BMN is worth more than that, and will naturally reach that point anyway in the next 12 months or so IMHO.

So yeah can't see it happening to be honest, but thanks for sharing the idea.

Yeah v strong update. Not invested there but it's great to see IES getting more projects in Australia, USA (California), and the UK.

And let's not forget Bushie will have first port of call as to whether to sell them the vanadium for those projects of course

* By which point Largo's incredibly short Life of Mine is likely to be an issue for them, and their investors will likely jump ship to Bushveld if they have any sense!

Ninvestor, boxergirl, james, and many others,

It won't come good in the end. Good is not enough. It will be absolutely amazing in the end (whenever that is) and much earlier than that too.

Honestly can't tell you the number of times I've seen frustration grow and lead to some people to sell up at some of the worst possible moments, either by giving up completely, or attempting to trade this share and being taken by surprise.

I've seen it when we drifted from 3.1p to 2.7p just before we re-rated to 8p+. I've seen it at 8p just before we went on a crazy run to ATHs. I obviously remember it at 10-14p last year before we re-rated to where we are now. Etc.

All of those people majorly regretted selling. All of them who tried to trade BMN would now tell you it's an incredibly risky thing to attempt to do. Because it's one of those shares that are unpredictable and can release the most incredibly news out of the blue.

So, if you believe vanadium is going to revolutionise the world over, and if you believe Bushveld is the best all-round vanadium play like I do, and that it's on the cusp of its most transformational period of newsflow in its history, then the only real options are to hold and to load up whilst you can at these bargain prices!

And ultimately I would urge everyone to trust Fortune & the BOD because, whilst they're not the best communicators, they have successfully increased the inherent value and NAV thousands of times over the past 5-6 years in the most remarkable way you won't see anywhere else, and there long-term multi-faceted plans to continue that growth in the years ahead are about to all come together.

And one day, when Vanadium Production reaches 8,400mTV* and Vanadium commodity prices average 3 times what it costs to produce the stuff out of the ground; when we've won the Eskom BESS tender and then many more; when the Electrolyte Production Plant and rental model has secured us a very profitable recurring revenue stream; and the stockmarket views Bushveld as a Green Energy stock we truly are, and we're consequently are valued 10-20 times where we are now, and we're all sitting on life-changing returns... we will all look back at this and think "I'm glad I got in there early and kept the faith when the going got tough."

Sanchez,

Great post, and I completely agree with everything you said!

Also sounds like you've done similar research to me re shares listed in the US having a comparatively crazy high valuation to what would be found in the UK. This is precisely why I've sometimes floated the idea of us listing in the US because, if we did, we would be at 100p+ already I'm sure!

Completely agree on this final point too. The incredibly strong local bias is one of the things which is majorly in Bushveld's favour with the Eskom BESS projects, and part of the reason I firmly believe we will be successful !

"Long-duration energy storage set for 'very steep' growth as sector enters commercial phase... about 400MWh of long-duration energy storage had been installed worldwide last year — roughly 3% of the global storage market. “But by 2030, we believe there will be about 30,000MWh installed, which basically represents 40% of the global storage market. So there is a very steep growth curve."

"Ed Porter, business development director at Invinity Energy Systems, which lays claim to being the world’s leading vanadium flow battery developer, told the roundtable that its storage technology is being installed in South Australia to “oversize” a large PV plant.
“Essentially, what we’re allowing the site to do is we’re oversizing the solar, so there will be curtailment on the inverter and we’re running that curtailed energy into the storage… and that’s where that business case comes from.”

https://www.rechargenews.com/technology/long-duration-energy-storage-set-for-very-steep-growth-as-sector-enters-commercial-phase/2-1-966326

"How battery tech is changing the renewable market. In 2019, renewable energy powered the equivalent of 43.5 million homes in America. The biggest renewable sources, wind and solar, generated hundreds of thousands of jobs and over $10 billion in investments each. By 2025, renewable energy worldwide is predicted to become a $1.5 trillion dollar industry, incredible growth in such a short period of time...

Despite all the enthusiasm, one major hurdle stands in the way of wind and solar companies expanding faster: their battery...

In 2019, only 5% of behind-the-meter solar systems included a battery. While lithium-ion batteries may still suit the purposes of mobile applications, they are a poor fit for long-lasting, stationary, energy-intensive operations like power storage for renewables...

Vanadium flow batteries have several advantages over their lithium-ion peers: with annual maintenance, they have a useful life of over 25 years, they can fully charge and discharge throughout their lifetime, and their recycling process is far simpler."

https://www.valuewalk.com/vanadium-flow-batteries-renewables/

Even taking account the 2 x 200k sells this afternoon (which is nothing really), I can't understand why this has fallen 2% today.

So I reckon this will close upwards at roughly where we started.

Yeah well I'm sticking with it.

Share price based on mining ops alone should be 40p.
Any comparison between us vs the Vanadium commodity price and vs Largo's price, suggests the same thing.
So I do believe we will naturally re-rate on this alone over the next few weeks...

... and then you've got the Eskom BESS Tender Success news due any day now! This is going to be hugely significant, and will help the market realise that Bushveld is a Green stock, and deserves a valuation to match it.

Meanwhile, as I said, you've got the BOD actively promoting themselves to investment houses at the moment.

So yeah, whilst I agree it now looks more optimistic than when I first said it in January, I'm going to stick to my 50p target by month end. It's still plausible and, regardless, all time highs of 50p+ are on their way very soon!

loudspeaker - thanks for sharing.

It's crazy to think that Vanadium commodity prices in Europe were $30kgV on 17th Feb and are now $36.1kgV / slightly over 20% higher today, less than 3 weeks later.

If this pace of price increases continues, we'll certainly see $45kgV in the next month!

- Ridiculously low market valuation at present vs any analysis of Fair Value. Let’s not forget annualised production has already increased almost 40% since the start of the year, and is due to increase so much more over the next year. On this basis alone, ignoring all the exciting non-mining/Green operations, we should be at 35-40p already. [As I went into some detail on yesterday]

- Green Stock as well as an excellent mining stock.

- Investors Chronicle, Financial Times, Myles McNulty, and many others have all tipped BMN in recent weeks.

- Out of hundreds of companies, Stockopedia came up with their Top 20 tips for 2021, and BMN came 3rd (and will do better than the two above it!)

- Vanadium prices have risen massively in recent weeks, and are expected to reach $45gV at the bare minimum this year, and BMN's share price always seem to track the commodity price sooner or later (Don't actually think that's fair necessarily but that's what has happened for years, and that's now a very very good thing!)

- Vanadium prices are now rising so fast I believe we will see $45kgV later this month

For newbies, please read Lionel's Summary here: https://www.thebushveldperspective.com/blog/public-articles-1/post/lionels-big-picture-428

Upcoming Newsflow:

- Vametco Phase III expansion project news (using Orion Funding)

- Vanchem Phase I refurbishment news (using Orion Funding)

- Enerox news - MoU with AVL (https://themarketherald.com.au/australian-vanadium-asxavl-up-15-pc-after-deal-with-enerox-2020-09-09/). Which obviously suggests the company is expecting us to be involved with the goliath Eskom BESS contracts.

- Invinity news (because it's very clear they're picking up lots of work and we have the option to supply the vanadium for all these VRFB projects)

- Electrolyte Plant Construction phase start in Q1. This was pencilled in to start on 22 Feb so truly is imminent, and this may get a separate RNS in itself. For proof: Check the tender docs on the ELIDZ tender website https://www.elidz.co.za/tenders/

- JSE Listing News and/or Main Market News. This clearly will happen - just watch this video interview with the CEO at 33 mins in for Fortune's comments on this topic - https://youtu.be/AX_WdScGDVw

- Possible rebrand - Chika recently said an official company description update would come "once the Q4 Update was released")

- Eskom BESS Tender News - Due in Q1, and could arrive any day now and will cause the share price to rocket!

Target price for end of March: 50p+

End of year target: 100p+

Trust all your research, Keep the Faith, and remember that Big News is coming, and it'll then be like buses!

Also let's not forget how the BOD are actively promoting themselves to investment houses at the moment. Something I mentioned last week and the post got deleted - fancy that !

GLA but we're onto a winner here !

Hope everyone had a good weekend (in the circumstances!)

Feel we're in for a positive week ahead : )

As mentioned, we've got an exciting few weeks ahead of us, both from a company perspective, and a global vanadium demand/price perspective, so we're looking very strong.

We've sustained 19p all week despite a market-wide sell-off, and I actually expect us to finish with a flourish this week, with a late push to 19.5 - 20.0p, before a blue week next week : )

- More Vanadium Price rises ! The commodity price rise has risen more than $1kgV this week alone. I fully expect that to continue next week : )

- Eskom BESS Tender Announcement - I believe this may come next week because the original tender date was 25 Jan + 6 weeks (for the tender extension we knew about in Oct) = 8 March

- Bushveld are promoting themselves to investment houses at present, and I believe this may bear fruit fairly soon. Probably not next week to be fair but who knows ...

Other Upcoming Newsflow in general this year:

- Vametco Phase III expansion project news (using Orion Funding)

- Vanchem Phase I refurbishment news (using Orion Funding)

- Enerox news - MoU with AVL (https://themarketherald.com.au/australian-vanadium-asxavl-up-15-pc-after-deal-with-enerox-2020-09-09/). Which obviously suggests the company is expecting us to be involved with the goliath Eskom BESS contracts.

- Invinity news (because it's very clear they're picking up lots of work and we have the option to supply the vanadium for all these VRFB projects)

- Electrolyte Plant Construction phase start in Q1. This was pencilled in to start on 22 Feb so truly is imminent, and this may get a separate RNS in itself. [For proof: Check the tender docs on the ELIDZ tender website https://www.elidz.co.za/tenders/]

- Lemur Disposal ?

- Creation of "single entity organisation" (words from an internal Bushveld document)

- Possible rebrand - Chika recently said an official company description update would come "once the Q4 Update was released")

- JSE Listing News and/or Main Market News - This will happen eventually. As it is clear from this video interview with the CEO at 33 mins in - https://youtu.be/AX_WdScGDVw

DYOR and GLA : )

Steve, where you seeing this?

I know some people on Reddit who may be very interested in this if true!

So a 2% fall in that context is alright really.

However, in light of the continual V price increases, it does appear to me as though there's some seller around preventing the share price floating up like it should.

Not like that will matter when news arrives in the coming weeks.

Keep the faith & keep your hands like diamonds you lot : )