JSE Listing14 Jan 2019 23:48
The last major fundraise by BMN was announced on Monday 26 March 2018 for $22 million. The closing sp on that day was 13.02p. By the end of April the sp was 23.54p, an INCREASE of 81%.
Why do I mention this? That fundraise did not drop the sp at all and supported a significant rise over the next month. No doubt this would confuse those that think in generalisations and don't understand BMN (poor research) but the reasons are not hard to find.
First, we have a BoD with a great strategic plan for this company and a track record of delivering. Second, in the RNS the purposes of the placing were clearly explained and linked to the planned development of the company. The market judged the placing to be essential to this growth and viewed it in a very positive light. The facts of the sp are there in the charts!
So if the planned JSE listing comes with a placing I am in no doubt that BMN will fully explain the purpose and it will be to deliver on the plan and add shareholder value. REMEMBER BMN are making very significant profits from Vametco so don't need the usual placing to keep the lights on! That purpose could be one of a number of requirements eg brownfield acquisition, develop Mokopane vanadium project, etc.
And remember that the JSE listing exposes BMN to South African investors. Given that the BMN vanadium activities are all located in South Africa that makes perfect sense. No doubt it will please the SA Government when BMN are JSE listed. That should be another positive.
An announcement outlining a dividend policy would surely make this company even more attractive to SA investors.
In my mind there is absolutely no doubt that the newest joint broker, a company with significant international activities and connections, is related to the JSE listing. And I say bring it on. Another very exciting chapter in this amazing Bushveld Minerals story.
Just my opinion.
Regards. Pdub.