RE: Lets change the Narrative20 Mar 2021 09:19
Corrected post:
Simplistic appraisal of a company’s performance using only its share price history makes a nice headline but unfortunately has to be classified as a half truth. Without giving a full account of context and relevant contributory factors it can be highly misleading, as is the case with McMuff’s summary.
The theory that the share price is where it is because of poor PR is simply nonsense. The BMN sp rose sharply in 2017 and 2018 through a combination of two events .... a very overheated Vanadium market leading to a massive rise in the price of Vanadium was critical but only relevant because of the second factor ... we became a producer through the acquisition of a stake in Vametco. Neither had anything to do with PR.
I don’t think anyone of sane mind would now pretend that the main influence on the share price post 2018 was anything but the huge retrace in V price that no one accurately predicted or expected. Again nothing to do with PR.
Other factors that have certainly held back the share price at various times have been big holders offloading. Nothing to do with PR. However the funds raised from those investors were necessary to pay for further acquisitions and developments which only now are we beginning to see come to fruition.
Then just as BMN was poised to rapidly push forward its expansion programme at Vanchem and Vametco, along with a number of other developments, along came COVID. The impact of the pandemic has been considerable across the globe, and although BMN have managed this incredibly well, they have not been immune to its effects.
And we can’t ignore the slow action by the SA Government on moving to renewables, which has been a further hinderance to BMN and its share price.
Despite all this and more BMN remains on course to deliver its stated aim of becoming a large low cost vertically integrated Vanadium platform and that should be celebrated.
It’s assets are world class, its BoD have done a great job in building the company and it is set to increase vanadium production and develop its Bushveld Energy division. It’s just that the factors above have meant things have been delayed .... but I have no doubt whatsoever that they will deliver even more in the coming months and years.
If you think good PR (and we all agree it is poor) is the reason the sp is where it is (50% higher than a few months ago by the way) then I can’t help you. However I do urge people to give the whole story when analysing the company’s performance and not just those parts that fit your emotional state at the time!
Just my opinion. I am sure some will disagree.
Regards. Pdub.
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