RE: BigBiteNow's Twitter Posts today - 1 of 220 Oct 2020 20:59
2 of 2 :
1/10 #BMN on supply and demand. "Most of those co-producers (China) are operating at near full capacity today." "when they account for more than 50% and if we include Russia, 70% of total production, you have to ask yourself, where will new supply for vanadium come from?"
Quote Tweet
@BushveldMin_Ltd
· 9h
Interview with Fortune Mojapelo, CEO of Bushveld Minerals - Interims, Financing Deal and Market Overviews #vanadium #BMN #VRFBs #vnadiumredoxflowbatteries twitter.com/brr_mediauk/st…
11:24 am · 20 Oct 2020·Twitter Web App
2/10 "this is where it becomes particularly exciting for primary producers." "Its going to come from either primary producers that can respond and expand their production, on a brownfield or on a organic basis and there's only 4 primary producers that are in operation today and Bushveld has got 2 such operations." If investors believe in even a fraction of the opportunity that VRFBs represent for the vanadium industry, then supply is going to fall substantially behind demand. 4 primary producers have the ability to react the fastest.
4/10 Faster than co-producers who must build new plants at massive capex and faster than new mines, that face the same high costs but that must raise capital in a low price environment and even then need years to get to first production. Not going to happen until prices recover.
1
5/10 BMN just raised c. $65m to implement growth whilst the pricing environment is low, giving them first mover status once again. An action that I am sure will be repeated right upto their 8,400mtV target and beyond. In doing so they will drive their overall costs even lower, thus driving their profitability higher and achieving better margins even at lower price levels. That in turn will allow them to drive further capacity expansion, at times when new mines cannot compete because they cannot get financed. If new mines do get financed, then it'll mean BMN is already doing very well.
Many years ago, when BMN were still securing Vametco, I talked about an inner circle, with BMN on the inside and junior vanadium plays looking in. The inner circle can control price through those brownfield/organic expansions.
8/10 BMN secured that position of strength, the day they secured Vametco and then compounded it, by delivering Vanchem later down the line. Nobody can move faster or go bigger than BMN and their world's largest high grade vanadium deposits.
9/10 The latest finance isn't just about securing more supply, lowering costs and preparing for the VRFB boom. Its also about compounding that first mover status and delivering the next leg towards being the largest supplier of vanadium in the world. A position that requires production expansion when essentially no one else can achieve it or wishes to try. That's a great long term investment in itself but its substantially enhanced by BMN's push to be involved in the very business that will drive them as a miner. . . VRFBs.
Great interv
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