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From Noble Capital:
Largo reported 2023-1Q results generally in line with our recently-revised estimates. Revenues were a few million higher than expected, but so were operating costs, leading to operating income near expectations. Income tax expenses of $1.8 million on $0.7 million of pretax income were unexpected causing a $1.2 million net loss ($0.02 p/s) versus our expectations for breakeven results. We will seek clarification on the 268% tax rate during the upcoming conference call (5/11 at 1:00 pm EST, 1-416-764-8650).
Production and sales numbers lowered for the rest of the year. Management lowered annual production guidance to 9,000-11,000 tonnes from 11,000-13,000 tonnes. It also lowered sales to 8,700-10,700 tonnes from 10,300-11,300 tonnes and raised the upper range of its operating costs per unit sold projections. The declines were split across the second, third, and fourth quarters implying that the heavy rainfall in December that affected inventory may continue longer than expected. We have adjusted the numbers in our models to reflect updated guidance.
I saw this open letter on my twitter feed and whilst its not about BMN a lot of what is said resonates with the situation here.
https://mhmembers.com/good-communications-drive-valuations-some-thoughts-for-improving-sentiment/
.."The report also highlighted that South Africa’s plentiful vanadium reserves give it the potential to develop a strong vanadium redox flow battery (VRFB) value chain. Bushveld Minerals is the main firm active in this space in South Africa, in both upstream and downstream through its ownership of VRFB firm CellCube."
A further 260MWh of VRFB production capacity could be developed in the country, CES estimated.
Updated Spangles note: valuation 23p
https://*********************/companies/uk/industrial-metals-iron-steel/bushveld-minerals-limited/research/sp-angel/bushveld-minerals-interims-highlight-solid-production-at-vametco/7_2022092907390070729/82a25c6c-94cf-47e4-9ab6-dd18f08dd013
See: https://m.engineeringnews.co.za/article/eskom-aiming-to-unlock-1-000-mw-through-mpumalanga-land-lease-bidding-process-2022-04-12
No details have been published as to the companies or technologies selected but as my previous message this information should be forth coming in the course of the next few weeks
The table was published in 2019 and was based on available data. Whilst we can only guess as to the technologies that will be selected I for one would be extremely surprised if VRFB's were not part of the solution that Eskom choose given all of the various statements made by key stakeholders.
https://www.vanadiumprice.com/the-european-price-of-ferrovanadium-rallies-on-big-volume/
www.ferroalloynet.com: Ferrovanadium is currently printing around 57.5USD/KG, rallying by 8USD/kg compared with last Friday and which is the highest it has been since April 2019. There are signs that sustained demand is returning as the price has been above 30USD/KG since March 2021. In addition, ferrovanadium is a tight market and in 2018 Bushveld Minerals multibagged as a result of a squeeze in the market that pushed the average prices as high as 127 USD/KG.
The European price of ferrovanadium skyrockets amid the overall raw material and container freight is increasing from the Russia-Ukraine conflict. Besides, the sanction against Russia from EU and US come one after another during one week. And it is reported that about nine banks have been put on sanction, they are Gazprombank, Alfa-Bank, Sberbank, Otkritie Bank, Sovcombank, VTB, Rosselkhozbank, Moscow Credit Bank (MKB) , Novikombank. However, according to Evraz, though it is not an easy time but as of now they are not in any sanction lists so they are able to fully operate our production and sales. While, the overall market panic on vanadium remains to be strong and which drives the market again. On the other hand, with 20 per cent of the ferrovanadium market coming from Russia, a country that is now being heavily sanctioned, along with Bushveld ramping up production this year to between 4,200 metric tonnes of vanadium (mtV) and 4,400 mtV from 2021’s 3,592, it’s not unreasonable to believe that the market price will standby.
https://www.gov.za/speeches/minister-gwede-mantashe-debate-state-nation-address-15-feb-2022-0000
South Africa must explore, prospect, and manufacture its mineral resources to be a global competitor and supplier in the bourgeoning global Green Hydrogen and Battery Storage markets.
We possess the world’s largest high-grade resources in, at least, six key commodities that play a critical role in the global hydrogen and energy storage sector. These are vanadium, platinum, palladium, nickel, manganese, rare earths, copper, and cobalt.
Support for the development of the local green hydrogen and battery storage sectors, working with Science and Technology, other departments, the private sector, and global partners, is key for us.
Our draft exploration strategy, presently in Cabinet processes, aims to take advantage of this and drive investments into the future demand of these minerals, for the just energy transition.
Eskom CEO Andre de Ruyter reports that the tender evaluation for Phase 1 of the utility’s battery energy storage systems (BESS) project has been completed and that he expects the final approvals to be in place in February.
https://www.engineeringnews.co.za/article/approvals-for-eskoms-exciting-grid-tied-battery-project-expected-in-february-2022-01-27