Member Info for Pdub

Squirty I am neither agreeing or disagreeing with your post as it seems to be largely speculation about what went on and I am not particularly interested in engaging with that. It is what it is.

However I am puzzled by this statement: “when 4q22 went badly”

On the operations side that doesn’t make sense:

Q4 2022

Vametco production

812 mtV @ $21.1kgV

Vanchem production

372 mtV @ $33.8 kgV Chemicals 55 mtV

Group production

1184 mtV @ $25.1 kgV

That Quarter resulted in strong production at Vametco, record Q production at Vanchem, record Group production, Vametco costs down 12% on previous Q, Vanchem costs same as previous Q but high value chemical production up more than double the previous Q and Group costs down 14% on previous Q.

Those results certainly don’t warrant the description Q4 went badly. True that some targets were not achieved but the results were good compared to previous numbers. Are you referring to other aspects of the business?

There is a headline I never imagined!! Even advising people to buy. Serious ramping.

But where does that leave team green? In turmoil?

Do they stick to their negative line and start abusive posts targeting him?

Do they see the light and follow him to the buy button.

Quite a dilemma. Good luck.

I almost feel sorry for them.

Certainly one to watch.

Quite likely that India will need to go shopping for a bit more Vanadium. Could take some from Russia of course but definitely a market for BMN to consider.

Agreed Troajan.

India is also investing heavily in solar. Can we expect a growth in VRFB sales in coming months and years?

I read on Telegram that Coffeecups is telling people to buy. Will this start a wave of conversions to BMN? Better late than never.

Have to smile.

Having said that I wish Coffeecups well with his investment.

Let’s hope then that the more likely sweet aroma of record production at Vanchem is what we get.

Will Craig stay with the policy of publication within the month after end of Quarter or is he going to keep the markets waiting?

At long last someone has noticed that my posts are generally quite positive!

Thank you ma5k. Very helpful lol

Thanks PMC2022. So my wish list for Q2 to include record Quarter of production at Vanchem looks quite likely.

Good to know.

Craig is here to take BMN forward following a period of upgrading of plant. That is why he is focussing on the mining side.

Hard work done now a period of consolidation and increased efficiency of operations.

Q2 Update should be interesting

Part 2

This issue was recognised and necessary funds raised. Painful but necessary in order to improve operational efficiency and increase output. The last few years have seen huge progress in delivering those improvements. Vametco has delivered a sustainable level of production for around two years.

Vanchem has been more of a challenge in upgrading from Kiln 1 to the larger Kiln 3 resulting in missed targets, lower output than expected and higher costs. To be fair load shedding did not help but there certainly were other issues. Progress in raising output and lowering costs simply has to be delivered if Group costs are to fall and help achieve profitability in a difficult Vanadium price environment.

The good news for those that have been watching closely is that load shedding impact has been possibly eliminated thanks to a new local agreement and better quality feedstock is being supplied by a third party at similar costs. We also know that in March and most of April the quarterly production rate at Vanchem was the equivalent of 420 mtV, a significant increase on previous quarters. Clearly operations are now running more efficiently. This should impact on production costs through economies of scale.

These improvements at both Vanchem and Vametco represent the critical operational progress needed if BMN is to be a profitable company. There is more that needs to be done at Vanchem to achieve its optimum output and that is why Craig has identified Vanchem as his operational focus. Hopefully his mining experience will help move operations forward at the plant.

There are those who think it is only the share price matters. Well maybe so for a shareholder but what is critical is improving efficiency at all levels within the company in order to increase output and reduce unit costs in order to achieve profitability and hopefully boost the share price.

The soon to be released Q2 Update will be critical to identifying any progress at Vanchem. I believe we will see that in the production numbers, not the end of the story but potentially a big step forward.

I believe record Q production at Vanchem is very likely and possible but by no means certain record group production. Would be good to see falling costs at Vanchem too.

A bonus would be greater high value chemical numbers too.

Just my opinion. DYOR

Part 1

Some may wonder why I focus so much on operational progress at BMNs plants. Putting aside any astonishment on my part that anyone needs that explaining let’s take a look at that.

Essentially any company mining and / or processing product ultimately needs to be profitable. Obvious statement I know. There needs to be a market for the product (and we are told there is buoyant demand for or of BMNs products) and the price achieved needs a margin above costs to generate profit.

What is equally obvious is that since the very high Vanadium prices of 2018 BMN have struggled to be profitable and that has not gone down with the markets. The volatile Vanadium price is beyond the control of BMN so they have to focus on what they can influence.

The company have made remarkable progress since early 2017 when they produced nothing to owning two of only four primary vanadium producing plants and one mine. That was achieved by purchasing two existing plants and a mine at far less cost and many years less time than new plants on green field sites. However both plants came with maintenance issues that needed resolution.

It would seem that when the dust settles Bushveld will still own somewhere between 20 and 23% of Enerox via VRFB-H. Not much changed in that respect.

MUST appears to have failed to meet its obligation and deadline. Hence the RNS. Some will try to blame BMN but that is utter nonsense.

If as described Garnet take control is that good or bad? We won’t know that for some time as it depends on how they perform. What is interesting is that we may end up with a share of a VRFB company listed in the US where there is a growing market for energy storage and where there is no significant source of Vanadium at present.

So how can BMN benefit? Well the obvious question is the value of Enerox (or whatever name the company is listed as). And this is where it may get interesting. US markets seem more receptive to tech companies so will the stock value grow more than had it been listed in London, thus increasing the value of BMNs investment? The company is also likely to initially be supplying electrolyte and later be able to bid for supply contracts. Either way they are likely to be the source of Vanadium.

It is way to early to draw definitive conclusions about this new deal but it may turn out to be a better result than the market response suggests.

Whether at some point BMN sell their stake I have no idea but it remains a possibility if cash is required.

Just my opinion. DYOR

I think as folks digest and begin to fully understand the implications of the RNS they might well come to the conclusion that having Garnet in control and US listing (?) may be better.

With control in Garnet’s hands pressure removed from BMN BoD. Bushveld will still have a significant stake in Enerox and have first option on electrolyte sales providing pricing is competitive.

I wouldnt be surprised if Craig prefers this option.

Just my opinion. DYOR

The answer is obvious. Ownership of EHL is Garnet and VRFB-H. They are the two parties. VRFB-H are not even a listed company. The dilution referred to can only mean dilution of their share of EHL Enerox.

So if one party does not contribute to any EHL fund raise their % holding in EHL would be reduced pro rata. Seems fair.

Superzero this is the relevant paragraph:

“ Any further funding required by EHL or Enerox, if not available from third parties, shall be made by Garnet and VRFB-H pro rata to their shareholdings, save that if one party is not able or willing to participate in such funding then it will be diluted accordingly.”

My interpretation of this is that if say VRFB-H was required to raise funds and couldn’t their holding in EHL would be reduced and Garnet’s increased. Can’t be certain.

Would mean a smaller share but probably of a more valuable EHL Enerox.

May not be such a bad thing.

This has not gone well under MUST. Maybe Garnet will do a better job and with access to US markets.

This may even be Craig’s / Fortune’s preferred option under these circumstances.

Just my opinion. DYOR

Well now the dust has settled and initial panic in some quarters subsiding I would like to say thank you for my shares at 2.45p. Didn’t expect that gift.

Grateful for some excellent posts this morning helping sanity to return.

Next step Q2 Update which I am hoping will provide good numbers from Vanchem considering resolution of load shedding, better quality feedstock and known good production figures in April. Not forgetting that new CEO is focuss8ng on Vanchem.

… if Craig sticks with existing company policy.

Numbers could be good particularly with Vanchem where I am hoping for record production at over 400 mtV and hopefully a reduction in costs.

Record group production? Let’s wait and see. Depends on Vametco hitting close to 800 mtV.

Also be good to see high value chemicals up.

And I am sure we are all keen to read Craig’s assessment.

Mind you if Q2 delivers as I hope and the new CEO lives up to expectation then I do wonder just what Q4 (no error this time!) will deliver. Only 6 months away. Minigrid data coming in, electrolyte contracts and production/sales numbers, Vametco production steady and Vanchem up, Vanchem costs down, MUST Enerox resolved and BE carve out complete. Yum yum!