Member Info for ninjamagic

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Bushveld Minerals* (BMN LN) 22.25p, Mkt Cap £268m – Bushveld prime the market for VRFB batteries with investment into Avalon takeover of RedT
(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin)

* Bushveld Minerals reports it is to support the merger of RedT (RED LN) and Avalon Battery Corporation with interim funding of US$5m by way of a convertible loan.
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* Avalon Battery Corp is a North American Vanadium Redox Flow Battery VRFB manufacturer which is reversing into RedT, a UK-based energy storage / VFRB installer.
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* The merged entity proposes to raise US$30m to support the new business.
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* The reverse takeover remains subject to further due diligence.
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* Bushveld Minerals is looking to partner with VRFB manufacturers and installers to support grid storage projects with funding and availability to vanadium electrolyte supply.
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* The vanadium contained in the VRFB’s can be leased using bank finance thereby spreading the cost of the vanadium supply and hopefully enabling the instillation of VRFB batteries into mainstream Grid support programs.
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* The newly combined Avalon / RedT business should enable some near-term VRFB instillations plus some follow-on sales with access to North America, Europe and Asia.
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* Bushveld report the sector may require up to 50,000mtV based on market forecasts.
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* The transaction should hedge Bushveld against future volatility in vanadium market prices as lower vanadium prices should, in theory, enable better sales of VRFB batteries.
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* Bushveld also has the right, but not the obligation, to invest a further into the merged entity on the same terms as other investors, at a maximum price of 1.65p/s.
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* Bushveld’s US$5m is structured as a draw-down facility over six months at a 12%pa interest rate plus a 20% commitment fee
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* More importantly, Bushveld gets a right of first refusal to supply vanadium, vanadium electrolyte and vanadium as a rental to the merged entity for two years and thereafter subject inter alia to Bushveld continuing to beneficially own at least 5%.

No. It's the perfect analogy. Season 2.

https://www.youtube.com/watch?v=BV9hJb8KsCI

Bushveld Minerals, which includes Bushveld Energy is a baby dragon.

The MMs, shorters and scumbags are those bald losers in the House of the undying. (Season 2) They desperately want to play their games with the baby dragon — but just don’t realise how big and powerful it’s going to become.

Fortune is Daenerys Targaryen, BMN is his dragon, and it’s going to destroy them all.

The end.

Lol. You beat me to it this time ;)

Bushveld Minerals* (BMN LN) 22p, Mkt Cap £254m – Support for RedT – Avalon reverse takeover to gain strategic interest in growing VRFB maunfacturer

(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin)

Bushveld Minerals reports it is to support the merger of RedT (RED LN) and Avalon Battery Corporation with interim funding of US$5m.Avalon Battery Corp is a North American Vanadium Redox Flow Battery VRFB manufacturer.

RedT’s merger with Avalon should enable RedT to grow in terms of VRFB manufacturing and grid storage battery supply.The merged entity proposes to raise US$30m to support the merged business.

Conclusion:  The reverse takeover of RedT gives Avalon a London listing and the ability to significantly grow its business in the UK and Europe. Support from Bushveld Minerals is significant as it helps connect the business with a major manufacturer of vanadium and a significant future manufacturer of vanadium electrolyte for VFRB batteries

The Bushveld methodology is simple: Build success on solid fundamentals. Do what you say you're going to do with solid, steady, incremental steps.

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Conclusion:  The new debt facility makes cash available to accelerate the construction of the new Mokopane vanadium magnetite mine and to restart idled production at Vanchem.
We will report further on Bushveld after the third quarter results.

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Bushveld Minerals* (BMN LN) 22.25p, Mkt Cap £257m – R375m (~US$25m) Debt Facilities Secured

* Bushveld Minerals reports it has secured R375m (~US$25m) of debt facilities within Vametco, its primary vanadium production unit, from Nedbank in South Africa.

* The facilities are:

* R250m (US$16.7m) 5-year amortising loan at a 3-6 months JIBAR1 rate as selected by the Company plus a 3.4% margin with semi-annual repayments.
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The first payment is due 18-months after financial close.

* R125m (US$8.3m)  revolving credit facility over a 3-year term at 3-6 month JIBAR1 as selected by the Company plus a 3.6% margin with semi-annual payments
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The security provided includes cession of shares in the Borrower, security over the assets of the Borrower, and a parent guarantee.

The three month and six-month JIBAR as at 24 October 2019 is 6.78% and 7.23% respectively.

* Bushveld recently renegotiated the cost of the acquisition of Vanchem cutting the cost to US$53.5m from US$68m.

* The revised deal pays just $30m up front while deferring the $23.5m balance through the issue of unsecured convertible loan notes at 5% interest rate.

* The new debt facility gives Bushveld funding to accelerate the construction of the new Mokopane vanadium magnetite mine and to restart idled production at Vanchem.

* We note a the Vanchem convertible obligation to repay an amount equal to 50% of any debt raised over US$15m, provided no more than 50% of the Loan Notes have been repaid, redeemed or converted.

* Note: Vanchem continues to produce some 80t per month of vanadium from one of four kilns at site.

* Ferro-vanadium: prices continue to pull back with prices falling a further 2.6% in Western Europe this week to $20.5-21/kgV according to FastmarketsMB.

* Prices remain significantly higher in China but also fell last week by 3.6% to $32.5-35/kgV.

* We note Chinese Rebar prices are reported to be rising on low inventory levels indicating a turn in market activity. Prices for rebar have risen by ~$2.8 to $520-524/t this week according to FastmarketsMB

* The price rise reflects a shortage of some grades of rebar in eastern China despite steel mills raising production to 3.56mt of rebar over the past week up 24,200t on the previous week.

* While this could cause rebar prices to fall it may equally reflect expectations for further government stimulus into the construction industry to offset the impact of the US-China trade war.

* Vanadium and other metals prices are suffering from sentiment relating to the long running trade war

* Production in China from secondary sources is also an issue, which we believe may be more driven by stockpiles than new feedstock.

* These stockpiles should diminish as Chinese steel producers are largely processing Australian iron ore which contains negligible vanadium effectively removing new vanadium **** supply from the market.

Good luck all x

And this is why you're the top poster on LSE. Thanks.

... for a RNS?

They're not even thinking about BE, but at least they think this can double.

https://www.fool.co.uk/investing/2019/10/25/can-the-bushveld-minerals-bmn-share-price-double-your-money/

For once I agree. You WOULD NOT want to be out this weekend.

You'll stop me sleeping with posts like that, dude!

I've got a small position in I3E, and it's been a little infuriating that the rise in I3E has happened the same time as BMN, as the plan was to go from I3E into BMN before Vanchem closed!

But between the two stocks, it's been an emotional week.

Hi Opulentia! I remember you from the GKP days! Lets hope this doesn't sink us like they did all those years ago!

LINK TO NOTE:

https://www.uploadlibrary.com/SPAngel_JohnMeyer/SP_Angel_-_Morning_View_-_Wednesday_23.10.19.pdf

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* Obligation to repay an amount equal to 50% of any debt raised over US$15 million, provided no more than 50% of the Loan Notes have been repaid, redeemed or converted;
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* Obligation to repay on a substantial sale of assets or change of control;
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* The holder will not be able to divest any Bushveld Minerals shares received for six months following conversion and be subject to an orderly market arrangement for the following six months.
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* A deferral of US$0.5 million plus an amount equal to the working capital adjustment payable in cash after two years.
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* All other terms remain substantially the same as per the original agreement announced on 1 May 2019.
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* Bushveld deal rationale includes:
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* Robust and growing demand from steel manufacturers and energy storage
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* A structural supply deficit due to concentrated and constrained primary production
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* Limited new global vanadium production on the horizon
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* By sustainably reducing costs, Vanchem will generate healthy margins throughout the commodity cycle
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* Provides diversification to Bushveld Minerals through the addition of another processing facility:
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* Following the refurbishment and ramp-up programme, Vanchem is expected to support steady state production of 4,200 mtVp.a.
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* Diversification of Bushveld Minerals' mining and processing footprint within South Africa
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* The Vanchem Plant has the potential to expedite the development of Mokopane:
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* The two assets will together create a fully integrated business in a shorter timeline, with reduced costs and risks than developing Mokopane on a standalone basis
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* Three kilns provide optionality and increased availability during planned and unplanned kiln maintenance programme
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* Provides optimal product diversification:
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* The Vanchem Business is capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals, complementing Vametco's existing NitrovanTM offering
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* Enhances Bushveld Minerals' ambitions in the global energy storage and vanadium redox flow battery space:
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* Provides further capacity for electrolyte manufacturing through the existing chemical plant and vanadium oxide production
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Valuation: our valuation for Bushveld is based on our Net Present Value of our forecast cash flows for Vametco, Vanchem and Bushveld Energy plus more modest valuations on Bushveld’s stakes in AfriTin, Lemur Resources, P-Q Iron & Titanium. Our 80p valuation is based on a ferrovanadium price of $45/kgV and assumed 9.15p/s of value for Bushveld Energy.

Conclusion:  The renegotiation of the Vanchem acquisition is a masterstroke for Bushveld and is a text-book deal from a management perspective.

Bushveld Minerals* (BMN LN) 27p, Mkt Cap £300m – Renegotiation of Vanchem acquisition cuts $14.5m off purchase price and defers $23.5m through issuance of convertible loan notes

(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin)
BUY – Valuation 80p (from 92p)

* Bushveld Minerals reports it has cut the cost of buying the Vanchem process plant to US$53.5m from US$68m previously.

* In the revised deal just $30m is paid up front in cash with the $23.5m balance paid through the issue of unsecured convertible loan notes at 5% interest in Bushveld Minerals.

* The new terms take account of the decline in vanadium prices since the Vanchem deal was first negotiated while allowing the seller to maintain an element of upside potential through the convertible note.

* We note the seller could also enjoy the benefits of upside revaluation from Bushveld Energy if the use of Vanadium Redox Flow Batteries for grid power support takes off in South Africa.

* Bushveld reaffirm their long-term production target of >8,400tpa of vanadium which we see as simpler and cheaper to attain with the Vanchem acquisition.

* Vanchem gives Bushveld lower-capital cost options for expansion to 8,400tpa along with much greater flexibility and good reason to bring in the Mokopane vanadium, magnetite mine which again spreads risk and reduces its dependence on the Vametco mine.
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* Furthermore, Vametco will provide ore to Vanchem to start which combined with Vanchem stockpiles will enable better operation of Vanchem to start. This also highlights how the Vametco mine can feed Vanchem if the Mokopane has any issues as well as visa-versa.

* If demand for vanadium continues to rise then Bushveld could also expand Vametco further to go beyond its long-term 8,400tpa vanadium target.

* This could become important if demand for VRFB capacity takes off and Bushveld needs to commit to greater production for the longer term.

* Convertible conditions:

* The convertible is Repayable in cash after the second anniversary of Transaction Closure, plus any accrued interest if not converted into Bushveld shares.
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* Conversion of convertible at the holder's option in two tranches of up to US$11.5m each, on the 1st and 2nd anniversaries at a 5% discount to the 10-day VWAP for BMN shares.
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* Scope for acceleration of redemption of up to US$5m of the Loan Notes 12 months after Transaction Closure if an average ferrovanadium price of $40/kgV is realised during any nine-month period during the12 month period after Transaction Closure;
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* Obligation to repay an amount equal to 40% of any cash received on a new share issue which raises more than US$30m, provided no more than 50% of the Loan Notes have already been paid, redeemed or converted;
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The Theme tune of todays market opening: The William tell overture. GLA.

https://www.youtube.com/watch?v=YIbYCOiETx0