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Good to see BMN on a rising trend since 23 June. Price up 46%.

Completely oversold after Results RNS and it appears that positive sentiment is returning.

About time too. Current valuation is ridiculously low in my opinion. Hence four top ups in last few weeks.

Furthermore there is total logic behind Fortune staying on to support the energy business. Craig is focussing on the mining. I suspect he knows not a lot about the energy side and certainly won’t have Fortune’s contacts in the industry.

To lose all that would not benefit BMN.

And Nobby if you read your own post it is full of “pure conjecture”. No facts at all.

Nobby I stated very clearly in my post that it is impossible to know the reason why Fortune stepped aside and I am not going to speculate.

Did you watch the video of the interview with Craig and Fortune? If not your post is out of date.

If you did you will understand from the quotes that Fortune has a role at BMN as described because that is what they told us in the interview. You should have picked that up.

I see further comments are being made about Fortune stepping aside as CEO. All we know for sure is this quote from the RNS. Anything else is pointless speculation (was he pushed, who pushed him, did he choose to step down, etc) and we probably will never know the answer:

“Fortune is a co-founder of Bushveld and has led the business as Chief Executive for more than 11 years. Having helped build the Company from an exploration company to a fully-fledged primary vanadium producer, Fortune and the Board agree it is an opportune time for a leadership transition to steer the Company to its further development.

Fortune will work closely with Craig during a transitional period in order to facilitate a smooth handover.”

There is no clue in that statement to anything other than mutual agreement.

However it does appear that there is no ill feeling between Fortune and Craig or the BoD. Indeed quite the opposite. From the MiningWeekly interview with Craig Coltman and Fortune Mojapelo the following quote from Craig:

“My focus is going to be on the mining side in the interim. Fortune is going to be supporting me on the other aspects.”

Clearly Fortune has a continuing role within BMN Group probably with energy storage. (Some have speculated that he may run BE. Whilst that is possible nothing has been released officially that confirms that.) These comments further support Fortune’s new role:

“In a joint online interview, outgoing CEO Fortune Mojapelo highlighted his commitment to supporting the company’s value-adding energy space”

And:

“Mojapelo pledged to continue to support the carve-out of Bushveld’s energy business strategy …”

What is interesting is the following comment from Fortune that seems to confirm that he will retain some authority within the company:

“We’re building the minigrid at the moment. We hope to complete it sometime next month. I look forward to inviting you, Martin, to come and look at it when we switch it on.”

Note the use of the word ‘We’! This also indicates when the minigrid should be completed.

As always just my opinion. DYOR

Nice rise. Small pull back at the end but traders had to dump a lot of shares to achieve that.

Silent during todays rise. Now selling and trying to unsettle people with the trader bull.

Remember who they are.

I see the green boxes are appearing no doubt with the known traders trying to dampen the rise.

However this rise is being driven by improving sentiment and about time too considering how oversold the share has become.

Coming up we have Q2 Update which if production numbers for March and April are sustained may well be another record production Quarter.

The soon to be announced AGM will see the refinancing package approved.

Electrolyte production is expected to begin within a month or two.

Belco solar minigrid should be switched on in a similar time frame and will be a useful showcase for VRFBs.

The above combined with positive dollar rand rate and rising vanadium prices should put significant upward pressure on the share price.

Another bonus would be resolution of the MUST listing and BE carve out.

I have said many times that 2023/24 looks like a very positive period for BMN and I hope that the new CEO delivers, particularly with respect to improving efficiency and production and reducing costs at Vanchem.

No guarantees. After all this is AIM …. high risk but also high rewards,

Just my opinion. DYOR.

Always nice to see.

Part 3

The debt incurred to achieve the very significant operational progress already made has been a drag on the share price but the refinancing package to be voted on at the AGM will remove this short term pressure and again the new CEO has made this his other priority. This debt is frustrating but it has been invested in upgrading the production facilities. The benefits will be long lasting.

So BMN moves forward from here in a strong position from the operations perspective and also will bring into full commission the minigrid and the Belco electrolyte production plant in the next month or so. We have a new and very experienced CEO that appears to been dynamic and determined to make BMN a more cost effective and profitable business.

My opinion is that the current share price in no way reflects the potential of BMN and if Craig Coltman delivers I expect to see continued share price growth.

Just my opinion. DYOR

Part 2

Vanchem is less straightforward. In many ways I believe Vanchem will be hugely important to BMN as the company expands its production base. With the potential to operate all three kilns (only the largest Kiln 3 operating at present) there is scope to significantly expand production at site and plans for staged growth are already in place to achieve this as and when affordable. The new CEO may of course review that.

What Vanchem already brings to the table is a much greater diversity of products including specialist products for aerospace and vanadium chemicals, both of which sell for premium prices as high as $100 kgV albeit in small quantities. Vanchem is 100% owned by BMN. Vanchem will be key to the longterm goal of 8000 mtV group production.

Expansion of Vanchem has not been without problems and initial commissioning of Kiln 3 in 2022 did not go as planned and required consultants to be brought in to resolve production problems. That has had a significant impact on production in 2022 and also meant higher costs. However the plant has made progress and by March April was running at a rate of 420 mtV per Q and hopefully we will see that confirmed in Q2 results around end of July. That should also be reflected in lower unit costs.

Unfortunately and unlike Vametco Vanchem was impacted by load shedding to the point where 200 mtV of production was lost in H2 2022. The lost production through load shedding and the commissioning issues above had a significant impact through lower output and higher costs and that alone will have contributed to BMN losses in 2022. The good news is that local agreements have dramatically reduced load shedding, perhaps to zero. I am pleased that the new CEO has prioritised raising efficiency at Vanchem and hopefully will get production close to target. Expect significant fall in costs.

Part 1

As I have said on numerous occasions BMN have invested a significant amount of money and time in upgrading the two vanadium processing plants. This was absolutely necessary if they were to grow the business across all vanadium sectors and transform the company into profit and shareholder value.

Those upgrades have achieved their target at Vametco with sustainable output and costs reduced. Much of the Nitrovan that plant produces is sold into the US market at a small premium to FeV and where Vanadium prices have remained significantly higher than in Europe and Asia.

Vametco is important to BMN as it represents their first step into production, achieved at far lower cost and in much less time than for example building from new at Mokopane (which at the time did not have a mining licence anyway). Vametco was purchased complete with the mine to supply the plant and BMN also have the Brits project which is the along strike extension to the mine, thus ensuring a supply of good quality ore to the Vametco plant for decades to come. If there is a down side under South African law because Vametco has its own mine BMN ownership is restricted to 74% which they have acquired in full.

And why would he do that Uksteveg? If anyone knows the potential it would be him.

And he is still involved with BMN

On AM vanadium prices rising in every category in China plus Europe V2O5

https://www.asianmetal.com/VanadiumPrice/Vanadium.html

More importantly the content of that article seemed reasonable to me. What is the issue?

And thanks for sourcing it pb940.

For anyone that missed the detail about the new CEO or perhaps considering investing in BMN here is some background on the new CEO Craig Coltman from the RNS:

“The Board of Bushveld Minerals is pleased to announce the appointment of Craig W. Coltman as Chief Executive. Craig has vast experience in the mining industry. He served a distinguished 32 years with De Beers Consolidated Mines in operational and commercial roles with his most recent role being that of Chief Financial Officer and as Executive Director. Craig is also the Chairman of De Beers Pension Fund.”

I will leave it to you to decide if bringing in a new CEO will be a significant positive for BMN over the coming months and years.

Typo.

“ Remainder of H2 2013 into 2014 looking positive in my opinion. DYOR

Apologies for typos. Having to use left hand due to surgery to repair damaged tendons in right hand.

Not a bad time to be taking over as CEO.

Investment in upgrading both processing plants completed.

Minigrid nearing completion.

Belco electrolyte manufacturing plant about to start production.

V demand forecast to rise with growth of VRFB industry.

Very favourable Dollar Rand.

Short term debt concerns eased as refinancing package moves closer to completion

Ex CEO focussing on energy business allowing Craig to concentrate on mining and processing.

Expectation that MUST Enerox deal moving towards completion

BE carve out to follow?

Remainder of H2 2013 into 2014 looking position in my opinion. DYOR

I am sure everyone is keen for the new CEO to make a great success of his new role.

He comes very well qualified for the role through his experience in mining and finance at DeBeers but is unlikely to have Fortune’s knowledge of and contacts within the vanadium industry. Wisely they have agreed that Fortune will retain a supporting dole at least during the transition phase as Craig establishes himself as head of the BMN group.

He has my full support as long as he delivers the refinancing package (I am confident that will happen) and gets costs under control at Vanchem and raises production at the plant to much closer to target.

Rising V prices are a nice little bonus for him today and the high Dollar Rand 18.80 won’t go unnoticed I am sure.

Vanadium price rises across the categories in China .

Also showing rises for FeV in Europe and US.

Good start to the week!

https://www.asianmetal.com/VanadiumPrice/Vanadium.html