Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
It seems that the VRFB tech is quite widely available, and therefore has little competitive moat, hence competitors will crowd the market (e.g. Largo). This is a major threat for companies like IES, but as a supplier of the raw material for it, BMN are sitting pretty; the competitive moat for Va miners is quite strong in this pricing environment (and if Va prices pick up it will take years for the competition to catch up). Picks and shovels as someone said earlier.
Well said Addicknt. I would just add that as NM is a (very) significant shareholder, you would have thought that his interests are more aligned with shareholders than someone else who is brought in from outside and has no significant skin in the game, regardless of how good this outsider is.
"Opening a short at what must have been just below 14p and then struggling to close at 13.5 and having to spend an entire evening making things up only for it to have no effect the next morning..."
What a strange world it must be inside your head Sanchez! Such BS and people actually lap it up! The easiest way to short, by far, is through spreadbetting. Guess what? You can't short BMN on IG, the biggest spreadbet firm in the UK. I imagine you can't short it on the other sites too...
Largo, BMN
£490m mcap, £150m mcap (actual)
6500mtV/yr, 3800mtV/yr
Based on production volumes only (ignoring opex, which does seem a fair bit lower at Largo...~$14/kg?) you arrive at a "like for like" mcap of £288, which is approx. 25p.
With the production expansion and BE opportunities there's a whole lot of scope to go higher than 25p even at these Va prices.
gkb, you agree that 17p sets a floor. Well the price is sat at 13p currently! 17p is a healthy 30% appreciation from here. So, that's a good start.
Global infrastructure spending simply has to have a positive impact on the demand for rebar, and therefore vanadium. It's not going to take too many dollars on the sale price to start making BMN seriously profitable.
Best time to buy is at the bottom, not 5 miles high (like SLP).
UKsteve - agreed, but you'd have to hope that the operational cost of Vametco/Vanchem is far, far in excess of group overheads and the other licenses. $6/kg should amply cover it with change. Clearly, BMN isn't raking it in at these prices, but then neither are their competitors. It's about surviving the lean period with a strong business and a decent balance sheet. FM is taking the right stance - go hard at expansion now so that when the Va price rises again, as history has shown that it does periodically, then BMN will be in a position to blast the competitors away.
One of BMN's major strengths is its management. FM has been rigourously controlling costs so that even at these depressed Va prices they are keeping their head above water. Then, once they've ramped up a little bit more, the economies of scale are going to see BMN confortably profitable even at $23/24/kg. That's something impressive. Competitors will go bust at these prices and new projects will be mothballed, which can only result in one thing in the end: a rising Va price.
gkb - that's one of the reasons I asked the questio about Largo - how much are they being valued at and how does that compare to what BMN is currently doing and will be doing in the future?
We are told that the operational cost is $18.40-19/kgV and the sale price is $23/24 currently - that's profit. The loan is to finance the first stage of Vanchem as well as the full debottlenecking of Vametco. That pushed BMN up to about 6.5mtV/yr - plenty.
This has all the hallmarks of a stock that is ready to rocket.
Iceberg, yes I see Fig 5 in the latest RNS. Hole 3 has gone off at a shallow angle from Pad 1.
Hole 2 assays at depth should be significantly better than Hole 1 if it's hitting the core of the system as the geo model predicts. the key here is to see what lies in the 500-1200m range in Hole 2.
Hole 4 from Pad 2 will intersect the originally planned hole 3 (vertical from Pad 1) at about 700m depth. Wonder why they didn't go vertical for hole 3, as originally planned?