Duferco - No longer a concern : )30 Sep 2020 09:23
Delighted to see Bushveld has paid off Duferco to avoid having to issue more shares instead next month. This demonstrates how highly they value and respect their shareholders.
"§ In addition, the Company announced that the previous owner of Vanchem, Duferco Participations Holding S.A. ("Duferco"), has agreed to accept an early repayment of US$11.5 million of their US$23 million convertible loan notes issued in accordance with the terms of acquisition announced on 23 October 2019."
I know the Interim Results show us swinging to a loss but this was to be expected given the way vanadium prices had collapsed; and, as said before, we must accept the fact that Bushveld are still very much in growth mode. Simply because they were able to sell vanadium at an opportune time to make loads of money does not mean they had exited / finished their start-up company style growth. That really was incredibly fortunate timing, and should not be used as a rod against their back now.
If you were to look at companies who are growing quickly and are still enacting their long-term strategies, the VAST majority of them are loss-making. Many of them have incredibly high share prices though because of their future potential and the the contracts they have on the horizon. And it should be the exact same here.
Bushveld is tendering for massive BESS contracts with one of the largest electricity companies in the world at the moment; they're likely to win; and we will get this news around the start of 2021. It's hugely exciting in itself. And that's not even the end of it of course!
DYOR & GLA :)
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