Huge Buying Opportunity1 Sep 2020 15:15
- Ferrovanadium prices are rising all over the world in recent months.
- Massive green energy investment from the US, the EU, China, Australia, etc combined with rapidly increasing adoption of VRFB technology in all of these territories plus many more (Saudi Arabia, Japan, Korea, etc) will continue to push these ferrovanadium prices higher and higher, which will improve Bushveld's profit margin significantly.
- The commodity price of ferrovanadium rising will increase interest and demand for Bushveld shares. Our share price has often tracked the commodity price in the past... until March 2020, which helps illustrate the size of the buying opportunity on this basis alone.
- Q2 News is imminent.
- Eskom BESS Contract news will come through at the end of 2020, and it seems certain that Bushveld will win some of these contracts worth hundreds of millions. This will transformational in itself, but will also demonstrate how using profits to buy stakes in Enerox and Invinity was the right strategy (something I feel the market may have doubted in the last year or so).
- The reason the share price has fallen below 20p is due to coronavirus, which caused a 35 day break in production, but otherwise hasn't had a negative effect. In fact, we've since been told production should still increase (thanks to Vanchem), ferrovanadium prices have risen considerably (esp in China) and are expected to continue rising, and we've also seen the materialisation of the Eskom BESS tenders. So it makes no sense why we still a 55-60% price increase to reach our pre-covid level.
All in all it's evident that this is a high-growth stock that is a few months away from news that will result in this multi-bagging. And it's already far too cheap, and trading strangely low considering it was 20p+ for ages before March.
Target price: 100p+
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