Member Info for Nickderby

The panic certainly created some volume and got rid of a few lightweights.
All good.

Meanwhile the Company and the vanadium price go from strength to strength.
This is the best investment I have found since ASOS, unfortunately I sold out way too early that time.

What an incredible future we have here! :)

Vanadiumprice.com hasn't updated for 3 days.
Shame, just when it was getting really exciting!

FeV could be over $90 per kg now....

Relax guys, it doesn't mean that they are all going to be issued immediately.

FM hates dilution as much as the rest of us, any issue would be earnings accretive for the company and be very worthwhile. That goes without saying.

PlayoffSunday, here is something I wrote previously on this matter. There are so many variables which can affect the buyout price. Just a few... Firstly , any buyout price won’t be based on today’s multi year high vanadium prices. More likely at an average FeV rate. SP Angel consider long term future FeV levels to be around $35 per kg. This will give a much reduced buyout value. Secondly, Sojitz have a minority holding of only 15%. The purchase of a minority’s interest is usually done at up to a 50% discount to a majority holding. Thirdly, no doubt Sojitz are keen on keeping their marketing deal on a long term basis. I’m sure that this marketing agreement will be an important part of the deal. All these items and many others will be taken into account when calculating the final deal. Also think about Sojitz’s lack of control and being at the mercy of the majority shareholder (BMN). Bushveld now control the cash and therefore any dividend distributions. It may be in Sojitz’s interest to sell out its holding in favour of a long term marketing deal? Any deal will probably involve part cash and part shares in Bushveld, so Sojitz will still have an interest in things going forwards. Think of it more as a deal to simplify the group organisational structure. I’m sure that the deal will be an excellent one for BMN. One thing for sure, the negotiations will be very interesting!

Actually I may have got that wrong. It may be just the Orderly Market arrangements that apply to YD.

'The Seller OMA dated 30 November 2017 and made between Company (1) SP Angel (2) and
Yellow Dragon contains the same Orderly Market Arrangements as the Lock In Agreements,
which shall apply in respect of all Ordinary Shares held by Yellow Dragon on Admission
(including the Consideration Shares) for a period of 12 months following Admission. The Seller
OMA is conditional upon Admission and is subject to the same Exceptions as contained in the
Lock In Agreements.'

'The Lock In Agreements also each also contains orderly market provisions (“Orderly Market
Arrangements”) which apply for a further period of 12 months after expiry of the lock-in period
(“Orderly Market Period”). During the Orderly Market Period the Director will only dispose of
any interest in, Ordinary Shares with the prior written consent of SP Angel or the broker for the
time being of the Company if it is not SP Angel (the “Replacement Broker”) and then through
SP Angel or the Replacement Broker (as the case may be) in such manner as they may
reasonably require so as to ensure an orderly market in the Ordinary Shares.'

Page 145.
http://www.bushveldminerals.com/wp-content/uploads/2017/11/247647-Project-Boost-120-dpi.pdf

MTB - I believe Yellow Dragon have a lock in agreement for 12 months from the date of the Admission document.
So they can't sell any before December 2018.

I know we all like to look at the daily price movements here, but I don’t know why we really bother. All that we should focus on is the structural vanadium supply deficit, which is now having a huge effect on FeV prices. Current FeV prices.... China $87.7-$88.6 per kg (10/7). Europe $79-$81 per kg (6/7). US $80.3-$83.6 per kg (6/7). Add on our 5% Nitrovan premium and we are well beyond our wildest dreams. Plus Bushveld Energy etc. What a great investment we have all found. A massive re-rate is coming :)

Another positive interview from John Meyer. As we all know the current FeV price is ‘Incredibly good news for Bushveld Minerals’. He admits that they have ‘Always taken a somewhat conservative view’ of the vanadium price. Other exploration companies can’t compete with Bushy. ‘The fact is that BMN is able to double and treble its production going forwards at about a third of the cost of anything that anyone else can really do in the exploration game’ Good times! :)

It's strange how everyone seems to be waiting for black and white figures.
This isn't a new business, we bought a going concern and the figures can be seen in black and white up to the takeover date.

Since takeover..
We know production figures,we know production costs are low (around $16,000 per tonne).
We know FeV was selling at over $60 per kg during H1 and is now more like $90 per kg as H2 kicks off.
Interest costs are minimal, depreciation is minimal and royalties are at 7%.

Its not difficult to get a reasonably accurate figure for profits.

People just need to do their research and be ahead of the crowd.
Exciting times ahead! :)

Thanks Alfa, that $100 per kg is getting closer and the structural deficit is going to be around for at least another 3-4 years.

I just can't imagine where prices might be by then! :)

Hi Knuttie, we all know that with the structural supply deficit FeV prices can only go up, even from these levels.
Cash brontosaurus! I like that one MTB :)

SP Angel are being ultra conservative, but they will keep increasing their targets as the year progresses. There is no alternative.

I haven't looked at the Bushveld Energy site for quite a while.
I see that the mission statement is unchanged.

'Bushveld Energy will become one of the largest electricity storage providers in Africa by 2020. We will meet the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.'

It going to be an incredibly exciting period for all shareholders.

Coiled spring! :)

MTB, as good as that article sounds, FeV prices are even higher now.

Current FeV prices...

China $87.7-$88.6 per kg (10/7).
Europe $79-$81 per kg (6/7).
US $80.3-$83.6 per kg (6/7).

Incredible! :)

As our CEO FM says..

'The story of Bushveld Minerals is not yet half told'.

Due to the amazingly high FeV prices, Vametco is throwing off so much cash that dividends are now being discussed.

'Bushveld is committed to delivering attractive returns to its shareholders. During the second half of 2018, the Company will define a capital allocation framework, which will outline the Company’s approach towards shareholder returns, including a dividend policy designed to encourage capital efficiency, to support the Company’s growth initiatives while simultaneously rewarding investors.'

The level of cash being generated is so high that it allows BMN to reward its shareholders and still have enough cash to invest and generate future growth.

Good times! :)

Nitrovan over $90 per kg?
Production costs under $16 per kg at current exchange rates.
Production 3,750 tonnes pa and increasing.

Dreamland! :)

'BEIJING (Asian Metal) 10 Jul 18 - Currently, mainstream prices for ferrovanadium 50% min stand at RMB290,000-293,000/t (USD87.67-88.58/kg V) EXW D/A six months, up by RMB8,000/t (USD12.05/kg V) from last week.'

https://www.vanadiumprice.com/chinese-ferrovanadium-prices-up-slowly/

Knuttie, thanks for confirming.
Its certainly not a time for selling.

The next three months should be exceptional :)

Three 100k sales.
Is it Knuttie's housekeeping time?

Even the indicators are supporting the fundamentals.
88% buy.

https://www.barchart.com/stocks/quotes/BMN.LS/opinion