Member Info for Pdub

Thank you Jetstar. Very kind of you.

The RNS confirms production stabilised at Vametco and every month since the shutdown in Q1 ended they have exceeded the 240 mtV production target.

Costs have fallen significantly.

Vanchem has achieved consistent production figures.

Group production is on target to reach over 3400 mtV for 2021

2022 will see the electrolyte plant in commission and Kiln 3 in production at Vanchem raising that plants production to 2600 myV and group production to over 5000 mtV.

The new Kiln will also result in a fall in production costs at Vanchem to bring it into line with Vametco.

Good to know that BMN control huge Vanadium resources and can continue producing for decades to come.

This for me marks an important turning point for BMN.

Can folks concentrate on BMN and the excellent info in the RNS please

Leave the Troll to play with himself.

The Duferco deal also placed restrictions on the disposal of the shares as follows:

Not to sell within 6 months
Only to be sold in an orderly disposal.

As far as I am aware those terms still exist.

Another thought. Duferco will either hold ( if they have an eye to a longer term return) or they may wish to sell. I am sure if they sell they will not want the share price to fall. In fact quite the opposite. A rise in share price would give an even better return.

There seems to be an obsession in some quarters with Duferco and the remaining $11.5 million repayment.

Currently this is split $5 million in cash and $6.5 million in shares. Today’s RNS confirmed that this is the current position. Until told otherwise that is it. Fact.

However even if the deal was renegotiated and the entire amount was settled in shares (which for operational reasons has some merit for BMN) that would only be just over 6% dilution at the current m/c… which is peanuts. Completely insignificant in the grand scheme, especially when used for increasing production significantly.

For comparison the share rose by much more than 6% yesterday. In other words the value of the company increased yesterday by more than the total owed to Duferco!!!

Don’t let the doomsters frighten you. The Duferco deal enabled BMN to acquire one of only 4 primary vanadium production plants and together with Vametco has significantly increased group production and diversity of products. And yet more to come with Kiln 3. All this done at a fraction of the cost of a new plant and without taking years to construct.

For me today confirmed that BMN has turned a corner. It is obvious that shorting is still going on. I hope they fail and that the share price continues its much deserved recovery.

Just my opinion.

I am going to repost an earlier comment of mine because it is easy to get distracted from the real story on a good day like this.

“ Why?

They wanted stabilised production at Vametco. They delivered and exceeded production target.

They wanted lower production costs. They delivered.

No longer can critics say missing targets.

Well done BMN.

With V prices rising, production up, costs down, margins increasing and even Dollar Rand helping the future looking very positive.”

This really should be a turning point as we now know that Vametco has been transformed into an efficient production facility.

What are the strengths and positives from today’s RNS?

I know your thoughts on dilution so please just answer the above question. So far you haven’t acknowledged a single positive.

Whatever happens to the share price today is not the story.

The RNS gave confirmation that the investment in Vametco in Q1 to resolve production issues has been completely successful. Production is stabilised and above target and costs have fallen significantly. Vanchem production is solid and they are on track to raise production via Kiln 3 to 2600 mtV in 2022 with further cost reductions.

Rising V price is icing on the cake.

Well done BMN. Hitting targets and margins increasing.

I did ask which shorters would be left making the loss once the big boys exit?

Idiot. They are investing in Vanchem Kiln 3 to massively increase production.

Just as planned.

Much of this morning gone to NT even for £80

Excellent observation pb940.

Whilst the share price has been disappointing, the company has been working hard to achieve the results that have been reported today.

Much of the negativity has been around the sp. my positive attitude is the result of following what BMN were doing on site.

I am delighted that they have got Vametco back on track.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"I am pleased to report a solid quarter of production where we achieved our targets of stability and cost control at both our operations, on the back of the operational improvements we are implementing. At the same time, we were able to improve safety statistics, a very important achievement and one we will continue to focus on.

"We entered Q4 2021 on a strong footing as a result and therefore still on track to achieve our production guidance. We continue to invest in sustaining and growth capital to maintain stability and provide the platform for growth, to support the volume increase in 2022."

Hitting targets and also investing for the future. Very important that the new management at Vametco has a maintenance programme designed to prevent situations that we experienced in Q1.

I also like the attention to accident prevention. BMN appear to be a responsible employer.

Why?

They wanted stabilised production at Vametco. They delivered and exceeded production target.

They wanted lower production costs. They delivered.

No longer can critics say missing targets.

Well done BMN.

With V prices rising, production up, costs down, margins increasing and even Dollar Rand helping the future looking very positive.

Worth a look. Some inconsistencies and errors which should be obvious.

15 October
“Looks like the SP has hit some strong resistance at 9.8p.”

14 October
“SP appears in a 9.4p to 9.9p range.
Dont see a change until the Duferco dilution is resolved”

13 October
“We need to confirm 11p is broken and maintained before anyone can say the downtrend has stopped. “

12 October
“5p short term is likely....but next 5 years I can see a 15p exit “

12 October
“It won’t take much more for me to put 10m shares into the market” (edit: note 7 October post below)

12 October
“Pdub, $6.5 million in shares us bug (big?) dilution.” (Edit: er no it isn’t. At present sp it is 4% or less. Nothing in the grand scheme)

11 October
“Yes. If total share dilution of 8%, then SP heads to about 8.2p” (Edit: the Duferco CLNs represent about 4% or less, NOT 8%. Come on. Basic maths!)

10 October
“7.81 p is the long term support level.
I am buying more as the SP goes sub 9p
Exit price remains 15p”

7 October
“Current holding is 1.8 million shares”

Invest.well if you choose to respond to my posts at least try to understand them first. At no point have I suggested that the present share price is solely down to Covid, and frankly you are an idiot if you think that is what I posted.

BMN have faced a number of significant challenges that have contributed to the low share price, Covid undoubtedly being one of them. Since covid became an issue we have also had SA Govt delays, maintenance shutdown and shorting, together with a drop in V price. No wonder the sp has suffered.

More importantly things are looking much more positive now and I expect to see this reflected in the sp in the coming weeks and months.

I know some of my posts are quite long but please try to keep up.

I should point out that this phrase in my previous post was referring to the global VRFB market and not specifically BMN / BE

“… and VRFB installations and commissioning rising.“

MIKINAMAN under the circumstances your positivity is a lesson for everyone. Whilst most of my shares were bought at a very low price I did buy a few at 37p and 47p so yes things are happening slower than any of us expected.

I think it is fair to say the last 2 1/2 years have been challenging for BMN and its shareholders. There have been some very significant events that would be challenging for any company. The obvious ones being:

2019 China fails to implement its own rebar regs, contributing to a collapse in the Vanadium price.

COVID having a severe impact on the global economy.

South African Government delaying decisions that affect the local energy storage market.

Slower than expected uptake of VRFBs globally.

Unexpected shutdowns at both plants in 2020 due to Govt imposed COVID regs and at Vametco in 2021 due to technical problems. Both impacted on production and therefore costs.

COVID related global shipping and logistics issues.

Recent shorting of the share.

Yet here we are in Q4 with Vametco production stable, costs falling, Vanchem maintaining productivity and scheduled for expansion, the V price in China looking like a rising trend and VRFB installations and commissioning rising.

Some say the BoD are to blame. I couldn’t disagree more. They have steered the ship through some extraordinarily stormy waters and now that things are calming down they are back on course to deliver their target of a large low cost vertically integrated vanadium platform.

And as we have seen where BMN lead others follow.

Not all of us have the luxury of time on our side, but for those with patience I think this may turn out to be an outstanding investment.

Just my opinion.

Duferco were the previous owners of Vanchem. When BMN purchased Vanchem from them various stage payments were negotiated. The final payment of $11.5 million is due in November. The following details of the renegotiated terms were published in the RNS Full Year Results 30 June 2021 as follows:

“… Positive renegotiations with Duferco Participations Holding S.A ("Duferco") on the remaining balance US$11.5 million of convertible balance, to result in US$5 million being payable in November 2021 and the remaining US$6.5 million being converted into Bushveld shares … “

The price paid for Vanchem was a bargain and then was renegotiated lower as the V price fell. The plant has since been valued at a much higher price than the purchase price.

$6.5 million = £4.745 million at today’s exchange rate.
M/C = £118 million

Dilution is only approx 4% which in the grand scheme of things is peanuts.

Remember BMN acquired a fully operational vanadium plant with two further kilns that could be reopened. Kiln 3 is due to come on line in 2022 and by the end of 2022 Vanchem production should achieve a rate of 2600 mtV pa.

In my opinion, once Duferco CLNs are delivered we may miraculously see a decent rise in share price. Remember Duferco will want as much profit from those shares as possible ie a rising share price.

The original deal contained a clause whereby they cannot sell for 6 months and then only in an orderly fashion after that. I assume that is still the case. They may even decide to keep the shares if they see a future and don’t need the cash. We shall see.

In summery the Vanchem purchase was an excellent deal for BMN and its real shareholders. The very small dilution is a price well worth paying.

Just my opinion.

Taufour I think you need to include the whole paragraph in the Q1 update that relates to production target. As follows:

“2021 Group guidance expected towards the lower end of 4,100 mtV and 4,350 mtV, although risks to this guidance exist as a consequence of Vametco's challenges in achieving consistent plant performance, the slower-than expected ramp-up following the maintenance shutdown, the recent industrial action, as well as risks associated with the ramp-up of Vanchem's first phase refurbishment.”

In other words they retained the original target but recognised significant obstacles to achieving it.

Final Results 30 June 2021

“Group production guidance revised to between 3,400 mtV and 3,600 mtV.”

and

“As reported in the Q1 2021 operational update, Vametco's performance was impacted by slower than expected ramp up post the successful completion of the 35-day planned maintenance shutdown. There were more unforeseen mechanical breakdowns after start-up, followed by six-days of unprotected industrial action in April 2021 .
Due to this Vametco's 2021 guidance has been revised to between 2,300 mtV and 2,400 mtV, previously between 2,700 mtV and 2,850 mtV.”

and

“Due to delays in securing steel supplies for the Kiln 3 refurbishment schedule, Vanchem's 2021 guidance has been revised to 1,100 mtV and 1,200 mtV, previously 1,400 mtV and 1,500 mtV.”

So BMN anticipated problems with production, those issues turned out to be real and so they correctly informed the market of the new guidance figure. They had to revise guidance. You can’t kid the market that production will be so much when you already know that is not possible.

BMN acted responsibly and correctly. What is more important is that production at Vametco has gone well since the shutdown and it is almost certain that in the Q3 numbers we will see the monthly guidance of 240 mtV exceeded every month since April.

This is not something to criticise. This stability of production is exactly what they set out to achieve at Vametco and they did it. Celebrate it!!!

And as a side note Vanchem production has been equally consistent. Also very good news.

With rising V prices in China and in my opinion Europe and US likely to follow suit it is all starting to look very promising.

And 2022 now looking even better. Kiln 3 raising group production to about 5000 mtV, costs reduced and electrolyte plant online …

Just my opinion.