Member Info for Nickderby

The profit figure used to calculate EPS was after some large exceptional items...

Shares issued to directors/staff - $8.33m
Share based payment economic empowerment transaction - $3.232m.
Movement in earn out estimate - $6.09m.
Exceptional tax charge - $5m.

Otherwise Earnings per share would have been significantly higher.

Endion - from Note 11.

The calculation of a basic profit per share of 2.9 cents (December 2017: loss per share of 0.2 cents), is calculated using the total profit for the year attributable to the owners of the company of $30,215,509 (December 2017: loss of $1,228,729) and the weighted average number of shares in issue during the year of 1,043,907,922.

It’s been said before but it’s worth repeating. Anyone who thinks a PE ratio of around 10 is reasonable is many multiples out imo. PE ratios are based on growth. The higher the growth the higher the PE ratio. I don’t need to tell anyone that the growth prospects here are incredible. As we are a growth company, we will attract a much higher PE ratio than the average. Just consider our potential growth prospects with production growth through Vametco, Vanchem, Brits and Mokopane. We will be tripling production over the next few years. Plus we have electrolyte production coming up, plus VRFBS, plus Eskom, BE, Lemur, Afritin etc. Also, the huge structural vanadium supply deficit for the next 3-4 years will give vanadium prices and therefore our profits a huge boost. The short term deficit is even greater now that the new Rebar regs have kicked in. Vanadium prices will turn back up again soon and sharply! As a ‘most significant, lowest cost, vertically integrated vanadium company in the world’ we are happy with high or low vanadium prices. First quartile costs mean we will remain standing when others fall. Low vanadium prices mean our VRFB platform flourishes. High vanadium prices means Vametco/Vanchem churn out huge profits. Win/Win! Imo, the market will assign a PE ratio significantly higher than 25 or even 30 as Institutions start to buy into the Bushveld story, VRFBs and the large structural supply deficit. Exciting times ahead! DYOR of course :)

James, I don’t have all the figures with me but I assume minority interest has been apportioned between pre Sojitz 59.1% and post Sojitz 74%. Also, some costs are 100% BMN holding company costs (non Vametco) so do not affect the minority interest share.

James0309, if you compare ARC’s operating profit estimate of £78m and that achieved by the company of $95m, the difference is reasonable. You need to look at notes 10, 27 and 34 to see where most of the differences come from after that. I’m away at the moment, so can’t help much further at the moment. Great results though! What a fantastic company we are all invested in. Cash elephant! :)

Vauch, the broker targets may mean nothing to you but I find them very useful. Each to their own I suppose :)

A summary of the latest broker targets. SP Angel - target 90p. This is based on FeV prices of $60 per kg for 2019,2020 and a long term price of just $45 per kg. https://www.uploadlibrary.com/SPAngel_JohnMeyer/Bushveld_Vanchem_Acquisition.pdf ARC - target 45p. This is based on FeV prices of: $60 per kg in 2019, $52.50 per kg in 2020, $45 per kg in 2021 and beyond. However, their target share price increases to £1.06 at an FeV price of $85 per kg and Rand/$ rate of 14. Using a discount rate of 5% with FeV at $85 per kg, ARC have a share price target of £1.72. http://www.bushveldminerals.com/wp-content/uploads/2019/05/Vanchem-acquisition-opens-door-to-10000t-pa.pdf Peel Hunt recently initiated a buy rating and gave a short term target of 45p, with ‘solid near term growth plans’ as well as ‘further upside’ expected. Finally, BMO Capital have initiated an outperform rating and a target price of 55p. Remember, Fortune Mojapelo..... ‘The story of Bushveld Minerals is not yet half told’. These broker notes show that a share price of 23p is a complete joke and an amazing bargain! DYOR.

That last line should obviously say... If we had actually followed the FeV price increase we would have shot well through £1 per share.

Our share price rise was due to so much more than just the vanadium price though..., Our share price appreciation was as much to do with a complete transformation in the fundamentals of the Company. We bought a producing asset, then tripled our share in our producing asset and carried out Phase 1 and phase 2 increases in our production capacity. Bushveld Energy and Lemur have also progressed very nicely during this period. Lemur to BFS stage. Bushveld Energy have installed a VRFB with Eskom, which is currently going through testing. Also, their electrolyte production plans are moving forward nicely. We have increased our vanadium resources at both Vametco and Brits. We’ve even heard that a dividend policy is going to be announced this quarter. We have brought experienced mining entrepreneurs on board and have cleared all of our debts and outstanding warrants etc etc etc! Obviously the vanadium price helped, but the share price increase has been about so much more than just the vanadium price! If we had actually followed the FeV price increase we would have shot well through �1 per share :)

Well done to those topping up. I’ve had another 200k in 50k lumps. Bargain! Buy the dips if you can :)

Cindercone, also the SP Angel target certainly isn’t old, it was issued earlier this month.

Cinders, actually the SP Angel target is now 90p and based on much lower FeV targets - based on FeV prices of $60 per kg for 2019,2020 and a long term price of just $45 per kg. https://www.uploadlibrary.com/SPAngel_JohnMeyer/Bushveld_Vanchem_Acquisition.pdf

Very positive at the close.

NT to buy at 28p.
The actual bid was 27.5p and it was possible to sell 800,000 shares.
The MMs definitely want our shares again.

It could be an exciting week next week.
Q1 figures plus other news...?

I will be in the Algarve for 2 weeks so will try and keep up with the excitement.

Have a great weekend :)

They need to raise the quoted bid and offer as they are nowhere near reality!

Fooling around again...

They drop the bid but are willing to take 800,000 shares.
But try buying - NT to buy at 28p!

Endion , yes that is correct.
A value that is generated using all present and future cash flows.

Endion, basically current cash flows have more value than future cash flows when calculating the value of a project, due to the discount rate used.

'Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business, investment security, capital project, new venture, cost reduction program, and anything that involves cash flow.'

Agreed Alfa.
Bring on that licence!

Everything we have heard recently does seem to imply that it is on its way..... :)

Alfa, the NPV for Mokopane was $418m using a V2O5 price of $7.50 per lb.

The Vanchem acquisition is another amazing deal by the BoD!