RE: If Friday was the end....23 Jun 2019 10:09
Vaux I think your assessment is way too simplistic.
First of all let's consider some facts.
2 years ago sp 8.96p
1 year ago sp 18.23p
Today sp 25p
Despite the large seller, shorting and manipulation of sp that is two years of year on year growth!
With hindsight it was inevitable that such a large fall in V price would impact on the sp. It is true that the V price has reversed but still early days so not entirely surprising that the sp is lagging a bit. Strengthening of that V price rise should exert upward pressure on the sp.
Yes also true that great company news has not succeeded in reversing the sp trend but the large fall in V price was a difficult trend to overcome. However I think one has to consider the nature of that news. The Brit resource, BE rental provision, Vanchem .... none of these have produced immediate increases in revenue and profit so perhaps understandable that sp response has been quiet given the sp manipulation referred to above, but ..... they all provide incredibly important building blocks for the company's future development and expansion. LTHs will understand this and will likely be holding on to those shares with an even tighter grip, and some will be enjoying the opportunity of adding shares at a cheaper than expected price.
So why do I believe another phase of sp growth is coming soon?
First whoever is selling has a finite supply if shares that will eventually dry up.
Any outstanding shorts will one day have to be closed.
Vametco production figures for Q2 will hopefully show the March figure of 270 mtV was not a one off and that the plant has succeeded in raising production, and therefore revenue and profit. The market likes profit.
The Vanchem acquisition will soon be completed, instantly adding a little under 1000 mtV pa to BMN's production total and once again increasing revenue and profit. The market likes profit.
Hopefully BE news flow will increase, raising awareness of the potential of that side of the business.
The company seem positive that the Mokopane licence is coming. That provides the potential for feedstock to Vanchem.
The electrolyte plant will be completed and enter production, diversifying the range of BMN products and markets. New source of revenue and profit. The market likes profit.
And of course most analysts anticipate the vanadium market structural deficit to continue and the V price rising. That will increase further the profitability of both Vametco and Vanchem. The market likes profit.
I can't stop people posting negatively but, considering all the above, I simply can't understand it.
A very exciting 2019 / 2020 ahead for BMN and its shareholders.
Just my opinion.
Regards. Pdub.
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