Excellent Week, with an even better one next week!19 Dec 2020 10:52
Delighted that we rose a very healthy 9% this week, back up to 15p, for the first time in ages.
Consequently next week is looking So much better!
Let's not forget for one moment that Bushveld should never have fallen beneath 20p.
The fall we experienced this year has has NOTHING to do with what Bushveld had done, nothing to do with vanadium prices or prospects diminishing in any way, it was entirely due to the Covid-19 sell off that occurred right across the market. However, in our case, that fall was completely unjustified. Other than vanadium production having to briefly pause due to South Africa's 35-day lockdown earlier in the year, coronavirus has had zero impact on the company.
In fact the company has continued to make huge progress on a variety of fronts:
- Vanadium production is still going to be much higher than last year, largely thanks to the Vanchem acquisition. Q3 production was up 37% year-on-year. And, now with the Orion financing secured this year, production is going to increase at an even faster rate than ever before.
- The Electrolyte Production Plant got approved by all the relevant South African authorities (incl the v important IDC) and the construction of that plant has begun.
- The Electrolyte Rental Company was set up this year alongside this, and already has a contract with EDF's Pivot Power. This is going to be huge in the years to come.
- The partial acquisitions of both Invinity and Enerox were completed in H1 of this year.
- The Eskom BESS Contracts finally materialised this year, with the tender process opening late August and closing in late Oct. We can expect news from this very soon.
- And then there's been Major macro economic developments that will hugely benefit vanadium and Bushveld too, with VRFB adoption really picking up like never before; governmental stimulus programmes and initiatives like we've never seen before that'll benefit Bushveld; as well China becoming a NET IMPORTER of vanadium this year for the first time in a long time. Also I believe Biden beating Trump is going to prove significant too to the overall adoption of Green Tech worldwide. All of which is hugely exciting.
... and so it's remarkable that we still need another 35%+ increase to reach the levels we were at the start of the year.
It means that we all have the most incredibly opportunity to invest here at hugely discounted prices, which basically prices in all the above progress made this year at less than Zero!
With this in mind, I will be topping up first thing Monday morning before we re-rate to 20-25p inevitably occurs.
Longer term, my price target remains unchanged at 100p+ and I am super confident we will multi-bag over the next 3 months actually.
DYOR and have a good weekend everyone : )
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