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You know what, there was a time when people contributed and acted in a fairly civil manner on here. I don’t come on here to pretend to be a BMN expert. Anyways, interesting to see how things change with folk on here as the bear market rope tightens…
Best of luck you miserable lot, I don’t need your daft responses and negativity, so it’s bye from me.
I think the bottom line is if China V prices increase, so will eventually US prices, they are surely linked intrinsically.
Why else do you think SPR want the deal done before end of May, I bet they have a better handle on global V prices than us retail folk relying on Asian Metals!! ;-)
I was sceptical of this whole new deal, but then I read Oakblokes report on it. I think he puts it all into perspective very well.
Also, CC said they have a good relationship with Orion. So I think if the first payment in June can’t be met a compromise I am sure will be negotiated. It’s in Orion’s interests to do so.
Despite my earlier comments, I think we need to continue to trust in what CC is doing. All along he has said along the lines of BMN needs to get smaller to be future ready, so if we need to dispose of Vanchem in order to achieve that then so be it. There doesn’t seem to be any other option, although if he were able to convey that to shareholders on a call I think that would be prudent.
https://theoakbloke.substack.com/p/a-bird-in-the-bushveldbmn
I mentioned it Cindercone, and yes good point you make, if they are shutting down production and importing instead, that cant be due to lack of demand. So what on earth would cause the shutdown of x 6 of their producers? Sounds government mandated - maybe environmental reasons...?
I’m all for not going bust, but I can’t not agree with Kamran’s stance to query the rationale behind this being Bushveld’s only way out of avoiding its demise.
I’m not ruling out an equity raise here, still think it could be an option. If V prices were to push up the SP and thus out market cap enough in the short term it would be anyway.
'the company has given away it's most valuable asset for a fraction of the price it is worth.'
So what's it worth in a bear market then with the companies back against the wall with creditors calling...?
We still get 25% of the FCF for 3 years, so not completely given away.
It was never going to be amazing news, but I'll take survival rather than bust given I have £160k tied up in this investment.
Ok so we lose the Vanchem asset, but the upside is we still benefit from 25% of the FCF from it for 3 years after the sale with non of the risk and it appears (for now) we have escaped further dilution.
Just need V price back to $35-40/kg and with Craig at the helm we should be ok going forwards.
If they do successfully raise funds here, I’m thinking £15m at 1p a share. The 3p raise was never going to be the end of it, imagine allowing PI’s to get shares at the 1p level or lower and not allow II’s the same privilege. It will be a lot of dilution, but that’s the risk with penny shares. If this were to happen and we’d be close to 4b shares in issue, I can’t see how we’d get beyond 12.5p / share valuation as that would be a 500m market cap.
The other option is we go bust, but I see this personally as less likely as II’s were very keen to get in at 3p, so I’m sure they will be all over 1p if it’s offered. I know it all hinges on what V price will do, but II’s act rationally and if they know a turn in price is on the horizon they will invest for that future event. There’s already enough money on the table - for example SPR and that £15m non refundable loan, they won’t want to lose that.
Nothing I have posted here should be taken as advice, just my opinions, DYOR.
Interesting note on the Asian Metals portal for those with a keen eye:
29/04: "China's x 6 Vanadium Pentoxide powder producers stopped operation in March".
Why would all x 6 stop production I wonder (sales prices too low, etc)? I have no idea but odd they would all stop as a group.
Don’t hear much from Coffee Cups those days, imagine that last SP fall stopped him out along with the rest of the traders.
If BMN does survive, there won’t be many bulls left on the long side once the SP trend reverses, that’s for sure.