The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The death of the Largo employee is very sad news for the friends and family of that person. Can’t imagine how they must be feeling.
Some have in the past criticised BMN for prioritising safety record in their Updates. I have strongly supported the company for making the safety of its workers such an important issue. I did this on moral grounds. I don’t want to invest in a company that abuses its workforce. I believe worker safety was an important point for FM.
I didn’t even consider the headlines that such an incident as the one at Largo would generate for BMN, nor the legal ramifications. Hopefully this will serve as a timely reminder for BMN BoD to maintain the policy of care for the workforce and to continue proudly making that success public.
I believe this RNS took most of us by surprise. Certainly very little discussion about Primorus over last few months. Therefore a bit of a bonus sp rise from a topic not considered very important.
I wonder what potential impact the major news items may have on sp? The obvious one is the signing off of the refinancing package, for so long seen as a drag on the share price.
Other significant news may come in theQ2 Update which I hope will be published within two weeks if BMN maintain the past pattern. I hope this will contain higher production numbers for Vanchem and the resultant fall in production costs. This is an area that Craig has committed to focus on.
He has also indicated his thoughts on prospects and performance will be included.
Opening of the minigrid and the commencement electrolyte production may also be significant news items.
And then progress on MUST Enerox deal.
Plenty to come.
Just look at today’s headlines
No respite in sight for heat stricken Southern Europe
Thousands evacuated as Canary Islands wildfire burns
Dangerous US heatwave threatens new records
Surely global moves to renewable energy / battery storage is going to accelerate even more than we expect. This is not about share price. It is about our survival.
But companies like BMN / BE are building a position to benefit greatly from the expected growth in VRFBs.
Bold move Squirty to accuse the new CEO of misleading the market after only two weeks in post. Only he knows what was possible in those negotiations. You and I certainly don’t.
Hopefully you will come to express more positive opinions as he proves himself. As shareholders it is in our interests to support him.
Everyone needs to remember that neither BMN or Primorus intended the latter to become a BMN shareholder. Their connection was the MUST Enerox deal. Sadly Garnet put a spanner in the works there with a long drawn out and totally unnecessary court case which they lost
The long delay caused by that and other factors led Primorus to exercise the backstop arrangement which had been necessary to enable the original deal to proceed. Primorus were seeking to invest in a green energy storage business. BMN as a miner and processor of vanadium does not fit that and as I have said before it seems clear that Primorus need the cash.
The revised terms seem to suit both companies and are certainly better for BMN shareholders. The initial market response was very encouraging given the late posting of the RNS on Friday. Now that the RNS will have been seen by a wider audience over the weekend investors can decide for themselves whether they think that positive response will continue and if they like what they are already seeing from the new CEO.
Just my opinion. DYOR.
(Cont)
“ Craig Coltman commented: "We are pleased to have reached an amicable agreement for the repayment of these convertible loan notes. The revised arrangements mean that the Company will not suffer dilution at these low levels.”
His words not mine!
The positives for BMN and its shareholders are there for all to see.
No more CLNs
Cash being used to settle.
Prioritising avoidance of dilution
Concern to protect the share price
Very good coms to keep market informed
I am also pleased to see Craig flagging up more information on performance and prospects in the Q2 Update. Another example of improved communications. The critics have for so long said this is just what we need. Well here it is and initial market response was positive.
You raise some valid points Squirty, as did I.
Whichever way you look at it BMN are in a position to repay this in cash and are doing so. If by stretching out that repayment period it also protects BMNs cash position that would seem to be very sensible.
You say the talk of dilution is a bit misleading. Then you need to email the new CEO. I quote from the RNS:
“
I think it is worth reminding ourselves about Primorus’ involvement with BMN. This has come about because of their withdrawal from the MUST Enerox ongoing deal. They never intended to become a BMN shareholder.
Interesting to read these paragraphs from Primorus Final Results:
“In February 2022, the Company divested its convertible loan notes ("CLNs") issued by Mustang Energy PLC ("Mustang"), a special purpose acquisition company listed on the Standard list of the London Stock Exchange's main market "Standard List"). Due to Mustang not being in a position to complete its reverse takeover and readmission by the applicable maturity date, Primorus exercised its right to enact the backstop arrangement. Under this provision Primorus converted its CLN into a new CLN with Bushveld Minerals PLC ("BMN").
In 2022, two tranches of the CLN were exercised and the resulting holding of BMN shares were sold into the market. The remainder of the CLN will either be converted or the balance plus interest of 10% repaid in July 2023.”
So Primorus only received CLNs in BMN as a way out of MUST. Primorus clearly needed cash and both previous CLNs were quickly sold into the market. On this occasion it has suited both parties to settle for cash, Primorus because they need the cash as previously and to avoid fundraising and BMN because they can afford it and wish to avoid further dilution.
I note that Primorus have reportedly sold another holding recently (not BMN) to raise cash.
Despite what some may argue this was an ‘amicable’ revision that suits both parties but was only possible because BMN exercised their option to pay cash.
What also should please all BMN shareholders is the focus of the new CEO on the BMN share price and is taking action to support it.
Just my opinion. DYOR
Oh come on Beginerman play the ball not the player. You are better than that.
If the word ‘desperate’ caused you offence I am sorry about that and withdraw it.
It was important to point out the actual t and c that underscore this revised deal. Under those t and c it is BMN that had the power to change the deal, which they have exercised. Wisely the CEO recognised that dilution at this ridiculously low share price was not a good idea and given that he has experience as the CFO at DeBeers I think we can rely on his conclusion having access to the bank accounts that BMN can afford to pay in cash. Both points very good news for BMN and its shareholders. Something reflected in the initial market response.
Now of course that may suit Primorus too as I suspect that they need immediate cash for their other operations, hence ‘amicable’ revision. It is quite possible that Primorus are very grateful to BMN for helping with their short term cash flow.
One thing we can be certain of … the deal was revised because it suits BMN. Good to see the new CEO taking firm control of the situation. Bodes well for the future of the company and for us shareholders.
Just my opinion. DYOR
Wow Beginerman never seen you so desperate to find a negative.
As Craig says:
“ The revised arrangements mean that the Company will not suffer dilution at these low levels.”
Remember the cash / shares option was BMNs nor Primorus. Guess that took you by surprise. Clear from the RNS that Craig did not want dilution at this share price and that BMN can afford to pay cash. Both good news.
Twist it whatever way you like. Won’t change the facts
Beginerman I trust you read the terms and conditions in RNS of 19 Jan 2022? Might have saved yourself some minor embarrassment. Let me assist:
“… Bushveld Minerals has granted an option to Primorus to sell its residual CLNs (face value of US$1.5 million) to Bushveld Minerals ("Primorus Option"), to be exercised on or after 28 February 2022 in consideration for either cash or the issuance of new Bushveld Minerals convertible loan notes ("BMN CLNs") at the discretion of Bushveld Minerals.…”
Oops! The decision to pay Primorus in shares or cash is at the discretion of BMN NOT Primorus.
Situation is absolutely as described in the RNS.
CEO believes current share price too low
Doesn’t want additional dilution
Knows BMN can afford the cash
Opted to pay in cash not shares.
End of.
Beginerman I trust you read the terms and conditions in RNS of 19 Jan 2022? Might have saved yourself some minor embarrassment. Let me assist:
“… Bushveld Minerals has granted an option to Primorus to sell its residual CLNs (face value of US$1.5 million) to Bushveld Minerals ("Primorus Option"), to be exercised on or after 28 February 2022 in consideration for either cash or the issuance of new Bushveld Minerals convertible loan notes ("BMN CLNs") at the discretion of Bushveld Minerals.…”
Oops! The decision to pay Primorus in shares or cash is at the discretion of BMN NOT Primorus.
Situation is absolutely as described in the RNS.
CEO believes current share price too low
Doesn’t want additional dilution
Knows BMN can afford the cash
Opted to pay in cash not shares.
End of.
More green box rubbish I would imagine Codejunkie? What a pathetic life they lead trolling shares they aren’t even invested in.
They need to thoroughly read today’s RNS and learn from it. Lots of positive messages.
Expecting a positive start next Monday.
If that RNS represents an improved approach to coms I welcome it.
That news was a welcome surprise to me. Indicates more cash available than some would like to suggest and also a continuation of the policy of minimum dilution.