Member Info for Pdub

Don’t forget Q2 results !!!!!! Last year published on 31 July.

These should give some indication of how the company coped with the impact of the Covid19 shutdown and then restoration of production.

Take note in particular of sales figures. Could be quite good.

A long time ago now but it was Fire and Rain plus one or two beautiful Donovan tracks that inspired me to learn guitar.

Priceless encounter faramog !!!

Drifter, just gave myself a present and awaiting delivery .... a Gibson J-45 Standard. Always wanted one.

Started playing guitar 50 years ago this month so decided to add one more to the collection in celebration.

By coincidence it is also 50 years since my favourite singer songwriter James Taylor had his first success with Fire and Rain and the album Sweet Baby James. A remarkable man and still performing. Hoping the J-45 will help me achieve that unique tone. Fun trying anyway.

Sorry for o/t.

Daisydog sometimes when I read one of your posts I am forced to ask is it nature or nurture ....

Bushveld Minerals have an 8.71% stake in Invinity and a place on the BoD, as announced recently. So why does BMN, a very significant player in the vanadium industry, and its wholly owned subsidiary Bushveld Energy (BE) think the merger between Avalon and Red to form Invinity was such a good idea?

Well this is what BE CEO Mikhail Nikomarov said in an interview back in November 2019:

“To get scale you need to have orders, to have orders you need to get your costs down, you get costs down with economies of scale. One of the things that we liked in this specific transaction of Avalon Battery and RedT is a merger. It’s two companies looking at completely different markets having different skillsets, the ability to maybe have some synergies on the cost side on the R&D side, but you combine their pipelines and all of a sudden you’ve got a lot more scale, you get to that economy faster, and it’s not that you have to wait two years, you get there in one year, for example. Or instead of four years, you get there in two years. It means less capital to get there, and it’s a less risky investment. We think that is very good for the industry, and that is why we like that transaction."

So although one or two disgruntled posters here moan like mad, this large investor likes what they see.

Food for thought that a company is driving forward the global VRFB industry sees so much potential here that they have invested so heavily (8.71% of shares) and indeed helped to facilitate the merger.

Just my opinion.

All the evidence I see points to huge potential for this company. An exciting future.

Alfa I am not surprised and I agree. It's a classic. I use the transcript all the time to reference where BMN are going.

Needs to be watched several times to even begin to absorb the detail in it.

As there is a discussion about electrolyte manufacture I though I would post some relenant point from the very long but excellent interview with FM and MN.

From 11.11.19 interview

“We like the fact that we have two processing plants and we have a fairly good product mix which is broad which comprises Nitrovan and Ferrovanadium which is used in steel making, vanadium pentoxide and trioxide as well as vanadium chemicals and following the completion of our electrolyte manufacturing plant in East London will also include the vanadium electrolyte.”

And:

“In terms of what BE does itself, think of it as three verticals, one is around electrolyte that is a specific type of vanadium chemical, it’s the piece that stores energy within the batteries. We are building a facility in East London. We are doing it together with the IDC, we’ve got our environmental approvals clearance in September, we just went out to tender for the construction of the facility there."

And:

“The capital that we need to deploy to unlock this opportunity relative to what we would spend building a mine, building a processing plant, it's small. Our electrolyte plant will cost us $10 million. What will it produce? 200 MWh of electrolyte and if scaled up to 4 x that and if at 200 MWh it is using about 1100 mtV. If you wanted to build a mine and a processing plant that produces that amount of vanadium for the steel sector you are talking about more than 10 times that amount of money. So the capital intensity is low.”

I think that gives a clear picture of where electrolyte will be manufactured. I believe in the meantime BMN vanadium etc would be process by third party into electrolyte, but that is only my opinion.

As it is the weekend I though it might be an idea to repost a link to this 11.11.2019 CRUX Interview with Fortune and Mikhail. It is quite long but in my opinion is one of their best interviews in terms of BMNs strategic thinking. Even if you have heard it before, listen again ... it packed with detail.

https://m.youtube.com/watch?v=p3QUjIL1rJQ&feature=youtu.be#

I guess so MTJK.

Can’t remember if I or anyone else commented on this yet but a small milestone was mentioned in 2019 results:

“Other revenue was generated from Vanchem: US$89,000 (2018: nil) and Bushveld Energy: US$71,000 (2018: nil)....”

Now obviously the amount is not the point. BE is now revenue generating. Small steps and a long way to go .... but the journey has begun!

Drifter you and I have not always agreed on things here, so can I say that I really do appreciate the generosity of your post. Thank you.

Regards. Pdub.

Thanks Sanchez. I don’t want to miss this party.

Regards. Pdub

Good for you Enrico.

I will fight as long as I can to share that ride with you.

Regards. Pdub

Vantage1day from what you have just posted I would say that you are not just an ordinary share investor. No. You sound like a very wise ordinary share investor. Good luck with your investment.

Trevor may I respectfully suggest that if you can happily acknowledge the string of positives that I posted on the operations of BE yet the only take away I get from your post is frustration with the share price then why don’t you stop focussing on the share price and concentrate on company progress. That is my method and that is why I am so positive. Operational progress is frankly amazing.

I am quite astonished at how many pi’s here are happy to vent their frustration with the share price and seemingly completely oblivious to any damage they may be doing to sentiment and therefore the share price of their own investment!!!! Sorry... I can think of many words to describe that approach non of which I am prepared to post. Balance my a*se.

Yet those same people can’t find anything wrong on the operational side of the business. That is the message they should be putting out there. That is the message that I and others publicise because it is the important one.

We had the same whinges about sp back in 2015 / 2016 (in fact by some of the same moaners in recent months) and then when the time was right ... BOOM ... 1.5p to 48p in less than 2 years.

The company is in a far stronger position today so I expect a similar rerate when the market is ready. But investors need to be patient. Nothing will happen any quicker because poster a or b moaned on this bb.

All the above is of course just my opinion, based upon nearly 7 years as an investor in BMN. The BoD have my 100% support in what they are doing and based upon their track record I trust them to deliver.

Now I am going to enjoy some sunshine. Have a good day.

Thanks pb.

Trevor taken at face value I understand why you may be disappointed with BE but I believe you are not seeing the whole picture. Allow me to repost this:

Avalon and Red were already established players specifically in the VRFB markets. With a great deal of help and investment from BMN they merged to form Invinity, which operates in much more mature renewable energy markets. They are doing exactly what they were meant to do ... sell VRFBs. But that is it.

BE is a totally different animal. It is a subsidiary of the Bushveld group and is an important part of the BMNs strategic plan to form a large low cost vertically integrated vanadium platform. It’s remit goes far beyond just selling VFRBs and in that context is making significant progress. For example involvement in the establishing of electrolyte plant, running the project to test and prove the VRFB at Eskom in association with UET and the IDC (and through that attracting funding), designing and agreeing electrolyte rental contracts with Avalon (now Invinity), investing in existing VRFB companies and facilitating mergers in order to push the whole VRFB industry forward to help create a bigger market for the entire BMN group, and attracting other investors into deals eg Enerox. And of course BE are operating as a force to sell VRFBs only in Africa which is a much less mature energy storage market but which has huge potential for growth. Uniquely BE enjoys the financial protection of being part of the BMN group.

Some have failed to understand this much broader strategy and look only at VRFB sales. I have no doubt in my mind that they will be coming, and in significant numbers, but BMN / BE are focussing on creating the environment where this will be possible in Africa and placing BE in the centre of the action, but also where they are benefitting from companies like Invinity selling elsewhere but using Bushveld vanadium, electrolyte and rental agreements on a global scale.

BE is set to be a very significant beneficiary of the growth in the VRFB industry, but with multiple revenue streams. As MN said this is the purpose of vertical integration. This will not be a one trick pony. Every time Invinity sells a VRFB, BMN / BE make money! And of course may see capital growth in their investment. Brilliant.

I suspect lots going on at BE.

Hold on. Are they obliged to disclose every single contract as it is signed? Have Invinity disclosed details of all of their contracts in real time? Or at all.

Agreed. However there is no obligation to release news of contracts still being negotiated, and larger ones may be complex and possibly covered by non disclosure agreements due to commercial sensitivity.