Is it possible that this confusion comes from SP Angel using the word 'licence' but in the RNS it is referred to as the 'mining right'? I think it is the same thing!
This phrase from RNS is key: "... The mining right will be executed and issued by the regional office of the DMR, on a date still to be advised."
Thanks for posting that pb940. I too noticed the 'fully funded' statement!
9 days to go until the scheduled acquisition of Vanchem (100% of it) on 31 October. At reported production levels this will add almost 1000 mtV pa to BMN. Hugely important step for the company, diversifying the range of products and potential markets. Also very important are the expansion plans at Vanchem to restore the other two kilns ultimately leading to production of over 4000 mtV pa at that site alone.
And now we have the necessary mining licence has been granted for Mokopane which will provide the all important supply of vanadium feedstock to the plant and possibly to other customers.
All very exciting.
Just my opinion.
Coffeecups ... Grow up ... Please.
Get rid of that massive chip on your shoulder and join in the celebration of a good day for BMN shareholders.
Sadly I have had enough of your nonsense and rudeness. Back on the naughty step for you. Goodbye.
Exactly Alfacomp. From what I read here many see the energy storage business as being the company maker. But first things first. BMN are not doing too badly from the steel market and rebar in particular. Judging by recent sp movements interest is growing in the latest brownfield vanadium production plant ... Vanchem. 10 days to go!
I can't think of any other bb where the shareholders / contributors have put together such a valuable reference facility as thebushveldperspective. I remember our first conversation about your ideas for this. What you have achieved since then is quite remarkable, not forgetting of course all the other contributors that have made this such a great resource for the benefit of everyone.
Looking beyond Vanchem (and soon the Mokopane licence?)
It is worth remembering that BMN are building a low cost vertically integrated vanadium platform. This not only creates a diversity of revenue streams but also hedges against both high and low V prices. People keep asking about the sp and why it is where it is. Well putting aside market manipulation the above is a work in progress and other than Vametco the other revenue streams are not yet in place ... but they will be! And that starts soon with the Vanchem acquisition.
This quote from the FM / MN interview highlights this:
"The energy storage market is potentially 5 to 10 times bigger than the commodity market just selling V into the market. So for us it's almost a no brainer and it gives us a very good hedge in terms of the vanadium price. When V prices come off while the mining and processing prices may come down the attractiveness of our energy storage solutions goes up. The best of both worlds."
The development of the Electrolyte leasing model also hedges against high V prices affecting VRFB take up, and the acquisition of two brownfield Vanadium primary production facilities has hugely reduced the Capex costs to achieve very significant revenue and profit from the mining and processing side of the business.
This all highlights the strategic brilliance of Fortune's vision.
The next quote from the same interview highlights what can be expected in the short to medium term:
"So we have to appreciate that it's not the most straightforward story and it's one which I think the market will only fully appreciate as we deliver very granular initiatives such as the electrolyte plant and we start to produce electrolyte, we deliver the electrolyte rental contracts and the market can see how that works and how it translates into value. As we deliver deployments of VRFBs and as we demonstrate what sort of partnerships we are going to do with VRFB manufacturers. So I can understand why the story is not yet fully understood or appreciated but I think it's only a matter of time."
So in my opinion BMN are embarking on a very exciting period of expansion and diversification that should lead to significant returns for the shareholders. The future looks very exciting to me!
Just my opinion.
And another reminder from Interims:
Nice numbers for H1 2019. And this despite significant fall in commodity price. Excellent work Fortune. And H2 will see Vanchem revenue and profit added to the books without dilution.
Revenue of US$78.0 million (H1 2018: US$83.7 million).
EBITDA1 of US$41.0 million (H1 2018: US$42.8 million).
Profit after tax of US$30.8 million (H1 2018: US$28.5 million).
Free cash flow2 of US$23.3 million (H1 2018: (US$16.4 million).
Net cash balance of US$66.1 million at 30 June 2019 (31 December 2018: US$42.0 million).
Just a reminder of John Meyer's comments on 10 October 2019 about BMN (John Meyer is Partner and Mining Analyst at SP Angel.
"For those brave value investors out there, the guys that like to try and take advantage of tough market conditions BMN came out with their Interim Results a week ago. They're still producing pretty good profit numbers despite the pull back in Vanadium prices. We've pulled back our Vanadium price forecast just a little bit from $50 kgV to $45 kgV, which I think everybody's happy with. The company itself is long term planning on a price that's not far off that, and I think they have the added benefit of the Bushveld Energy subsidiary which is looking to build VRFBs which are good for grid power storage, and I think that's going to be a growing business for them.
So it's a business that's nicely underpinned by the earnings coming off the Vanadium. It's expanding that by buying a business called Vanchem, very cheaply in my view, and so they will be investing in that and pushing the production ahead. They can actually transport material from their existing Vametco mine straight into Vanchem and ramp up the production there, which looks really good.
So I think the market has missed the increase in production moving forwards because certain analysts just focused on the Vametco production whereas actually next year it's going to be Vametco and Vanchem, which will drive earnings growth. The margins on Vanchem will probably be a little bit less but that's just because they are taking over a facility that they need to learn how to run properly. And I think this is good. I think it will be a dividend paying stock going forwards. I think it's going to be a stock to watch as something that does well in the London market for some years to come."
"Looking at the charts it's a nice support level, 20p, it's been tested several times on the way up and on the way down and barring any bad news fundamentals will always break technicals. Like I said the chart looks very good. It's bottomed out and tested that level. It may be the bottom ... it seems like a good base level."
"That's how it looks to me. It feels undervalued. It feels that it's been oversold on the back of the pull back in Vanadium prices. That Vanadium price got overinflated last year. Lots of investors piled in to that, and it did drive earnings really well. BMN have enough cash to pay for the Vanchem acquisition which they do at the end of this month. They can run that relatively easily. They can build the Mokopane mine to feed into that, but while they are building that they can feed extra material from the Vametco mine. It all works very nicely together."
Coffeecups there you go again. You just can't post without the need to put others down. Why don't you just say what you need to say without insulting others? Stick to the point ... which is BMN.
I will add that the posters that you refer to have indeed made huge contributions to the collective body of knowledge that we all share. But many others have also provided invaluable insight and knowledge for others to benefit from. Even if you do not recognise that and are so dismissive of their efforts I for one am very grateful to all those who contribute to this bb in a positive, respectful and constructive manner.
It's Pdub to you Coffeecups.
And as this is a public bb I am free to exercise my right to challenge abusive comments, particularly as the targets of those comments were not specified and therefore could have included me! It is very easy to conduct civilised debate on this bb in an adult manner and without foul language.
If you had not used abusive language I would not have intervened, so look to yourself for blame.
... buying pressure driving a significant increase in sp. I felt it was only a matter of time before the Vanchem deal increased interest in the company.
It remains my strong belief that we are entering what I call phase 3 of the company's growth ... Diversifying production sites and range of products and increasing output. Remainder of 2019 and 2020 looking very exciting.
Just my opinion.
Coffeecups it is good that you exercise your right to post here, along with everyone else.
I am sad to see that in your 13.00 post you felt the need to be so rude to other posters. That says more about you than anything else. You have a long history of insulting people who believe in this company. I look forward to the day that you feel able to post about BMN without resorting to foul language about others.
Even on AIM a fund raise by a company is not always reacted to in a negative way.
For example, on 26 March 2018 BMN announced a share issue to raise $22 million, but the RNS also included 3 specific reasons for the share issue which were all regarded as positives. (Remember this was dilution, generally regarded less favourably than debt facilities, with the possible exception of convertible loans!) The share price on 26 March 2018 was around 12p. One month later it had reached 19p and in early May it touched 24p ... a 100% increase just 5 to 6 weeks after a major dilution!
AIM quite rightly hates dilution just to keep the lights on. Too many lifestyle AIM companies that exist just to keep their directors in sharp suits.
AIM can be sympathetic to fund raises for capital projects but that excitement soon wears off if accompanied by long timescales to production and revenue.
What AIM does seem to like is profit. Any debt to top up the large BMN cash reserve to purchase Vanchem will be to instantly acquire 100% of a business already producing just under 1000 myV pa. I can't imagine anything but a positive reaction from the market to this move. Quite possible that this debt could be rapidly repaid from attributable profits from Vametco and from Vanchem. Those of us who were around at the time will remember how quickly the debt taken on to purchase Vametco was repaid from profits generated by that plant.
One can only guess what will happen if in addition the Mokopane licence is delivered soon.
Just my opinion.
Once again thank you all for the kind messages. I hope no one minds if I dedicate those sentiments expressed by so many of you to Claire, Liz, Mrs roosters, NickDerby and all others that have been affected by this disease. Let's hope that the good news keeps on coming.
Perhaps equally important is to thank all those whose love and support makes this fight so much more bearable. So thank you GirlieNextDoor ... without you I have no idea how I would have made it this far. From what I have read over the last year or so on this bb I am sure the other fighters against cancer would wish to thank knuttie, RK, roosters, Mrs ND and all other loved ones who contribute so much.
It is hard dealing with cancer. I can only imagine how much emotional stress is felt by loved ones that give such strength to their partners suffering this disease. Thank you all of you.