How did I arrive at my £5 T/O valuation.25 Feb 2020 12:54
I have been a shareholder in BMN since they were merely an iron mine and an idea.
£5 a share is my carefully considered T/O valuation. Allow me to explain my findings.
In 2018 we touched 48p. Several brokers (3 of which I met in person) all told me that they gave zero value to Bushveld Energy. Nobody understood it. Many still don't. MM's definitely don't.
But - with all the different future revenue streams and increased assets, vertical integration, we should easily be 10x more than we were. How did I get that figure? Fortune Mojapelo said so.
"But the price of vanadium has come down" I hear them cry.
Yes it has. But we're easily twice the company we were when we were at 48p so todays SP price is irrelevant.
So. £4.80 is our fair price.
But when the inevitable period of consolidation comes, it will come at a small premium. Hence £5.00.
Maybe £5.28.
Of course, it seems mad that the SP could be valued at 30x what it is now. But it's not really when you look at all the seismic shift away from fossil fuels that is happening right now. We are trying to avoid cataclysmic destruction after all. Big problems. Big solutions. Blah blah blah.
DYOR. I did. I went to Vametco. I've even have the notebook and pen. How many trolls and shorter have been there?
None. Zero. Nada.
They're all too caught up in the daily vanadium prices and corona virus fears to think big. And if any of you remember what your driving instructors told you when driving on the motorway - steer the car off into the distance, don't steer it looking at the nose.
Good luck.
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