Actually - I think BBN was doing what he always does, giving his honest un-coloured opinion. BBN has been a long term commentator on the SA political machinations and I suspect is very well informed. His honest opinion honestly given should not be misconstrued or read into inappropriately. We should be big enough to listen to all opinions and to enter open and civilised debate - something BBN is undoubtedly THE champion of. I have a lot of sympathy with some of what he was saying across most of his numerous and lengthy posts today.
Foreign investment IS going into South Africa
@Lindon - the sun will explode, Climate change is killing the Planet, we are all going to die eventually...….and many other truths of limited ability to control. What exactly is it that you think BMN or for that matter anyone else should b doing about it. We can all identify problems and issues, how we mitigate them and if they can even be mitigated is what matters. After that it is just another risk to be balanced in a long line of risks to be balanced. It' called business. I think everyone invested understands the risks of investing in South Africa, we stay informed (and thank you your contributions do that), we continually reassess but this one is not something over which we have any power to exercise influence so other than decide to stop being invested, what is there to do ?
of more interest is what are they going to do with it ? There are no other Brownfield Vanadium processing facilities nearby do they have $300million + to build their own. Their drill results look uncannily familiar too yet they position themselves where ?? To coin @Nickdeby's favourite line..... Rainbow chasers. I know where I think my money will best grow with Vanadium.
That said - the more the merrier right now. All additions welcome VRFB will need it before long
Just look at how those "Opportunities" have been leveraged over three years. Only Early supply of Ore and low cost open cast start-up are yet to be extended and that in part is because the threat we foresaw of mining license not granted has come to bear.
If I thought (totality of) the readership here was objective enough to warrant it, I would indulge in an update and extension with mitigations like last time. Alas I suspect we would see hijacking. However if anyone else want to kick off, I would support with input.
This from June 2016. AN early SWOT output:
In ground assets
Short term balance sheet
Stability of large long term shareholders
Keeping to planned and published deadlines
Lack of published studies
Lack of published detailed plans
Financial tie up with Darwin
FM lack of real experience commercialising assets
Lack of trust with institutional investors
Over reliance on consultants
Utilisation of Failing brown field sites locally
Platform disposals of non-core assets
First Quartile production costs
Metal prices at historical lows (culling competition)
Early supply of ore to third parties
Low cost open cast start up
Hostile bids below true value
FM gets bored and moves to another pet project
Mining license not granted
SA government changes policy on mineral wealth
Mining sector industrial relations & workforce issues
No recovery in metal prices
Scoping study results not representative of the whole
Infrastructure failures (Power, Water, Transport)
you know some of us really were ahead of our time...…… Do you remember this BBN ?
@BBN - just a really quick answer (light on detail I know but I also know you have this all already and can furnish more details besides)…….
From 2018 final results. Assets and Equity $210,601,668 which after conversion is equivalent to 15.6p per share so not far trading off current nett asset value. This ignores cash generated. Using ONLY Q2 numbers (worst V price). The most flattering pe you can calculate is 10.2
This is significantly under valued.
in the current board climate I'm not going to debate this - just a courtesy reply to point you at my thinking as I'm confident you are already fully appraised from your own endeavours. Anything else to discuss - no probs I'd look forward to it.
@BBN - I get what you are saying and you will recall we've had our moments of disagreement in the past and significantly with @Nickderby I remember when I have raised negatives to play devils advocate or suggested strategies that were unpopular. However on this occasion I think you are wrong about one thing. Given the value of assets and the amount of cash being produced, by almost any traditional metric BMN is currently significantly under valued.
That said - this does all have the "opportunity" feel of 2015 about it for anyone smart enough to do some research and peer through the mist.
Best IRON can hope for is that some of their better assets get cherry picked to raise enough to keep the directors salaries paid another quarter or two. Who ever said " Merger " earlier on is certifiable. This is a fire sale pure and simple.