Member Info for Pdub

Nice run in at the end. Everyone ready for another exciting week / chapter in the BMN story?

Have a good weekend.

Regards. Pdub.

Yes understood BeingPatient. I think my target audience was those who had not thought about this and having read your post might need some reassurance. Quite possible that there is no one in that category of course.

Hope that makes sense.

Regards. Pdub.

Thanks Nick. Exactly what I requested.

So if the entity that enabled us to acquire Vametco (!!!!!!) benefits from a deferred for 3 years significant payment I say great, they deserve it for being there when the company needed them. They took a risk just like we did, and just like us they are prepared to wait for what will be a significant reward if the future for BMN pans out as we expect. They will be entitled to 26.595 % of the Ebitda for Vametco in 2020, payable as I understand it in 2021. Of course that will be tax deductible for Vametco?

We need to remember that by then BMN expect to be producing electrolyte, possibly producing ore from Brits (and Mokopane?) and who knows what Bushveld Energy will be contributing to BMN in revenue /profit by 2021.

I don't think that anyone should concern themselves with this payment!

Maillotjaune what is the point of your post? I assume you are not suggesting that a CEO who has not had a pay rise in 4 years and who has delivered to me a return on my investment of 846 % is anything less than fully deserving of these shares as a reward? If you are I would suggest that you are completely out of touch with reality and on your own.

This company is very lucky to have such a talented CEO you actually delivers on his commitment to giving value to shareholders and in my opinion he is severely underpaid by AIM standards.

If the above is not what you are saying and that you fully recognise the value of Fortune Mojapelo then we'll done.

As for the tax status of those share, who cares!!! That is a matter for those beneficiaries, the company, the accountants and the tax authorities. It is of no concern to me whatsoever.

So let's move on ...

Apologies that should read "... in 2018 and 2019 at $600,000 each ..."

Even cheaper!

BeingPatient / Ludeck could you post the method for calculating the payment YD based upon the Ebitda for 2020? I can't find it and without it your posts are not making much sense to me. A link to the source would also be helpful.

Certainly the two fixed payments in 2018 and 2019 at £600,000 each are not at all significant.

Many thanks. Pdub.

Very true!

Nick where do you see BMN - just a cash cow or a cash elephant ?!?

Regards. Pdub.

To potential new investors who may be wondering why LTHs like myself are so confident about the future of the company and the sp.

26% interest in Vametco Vanadium producing plant acquired April 2017.
No controlling interest thus BMN could not show Vametco profits in 2017 accounts.
December 2017 BMN acquire YD shares in Vametco, raising stake to a controlling 59%.
Vametco profits will show in BMN 2018 accounts.
Vametco on target to produce 3680 mtV in 2018
Vanadium price in H1 average about $60,000 mtV ($60 kgV)
Vanadium price in H2 so far around $80,000 mtv ($80 kgV)
Vametco production cost 2017 $16,600 mtV ($16.6 kgV)
Vametco key product Nitrovan believed to attract 5% premium on Vanadium price.
CEO stated Vametco capable of generating Ebitda of $150 million in 2018 at average Vanadium price of $60 kgV. In my opinion could be greater if Vanadium price remains at the $80 kgV level.

The stunning rise in Vanadium price since BMN first acquired an interest in Vametco has prompted the description of Vametco as a cash cow (upgraded by some on this bb to cash elephant!)

A 3rd phase of production expansion at Vametco expects to achieve a rate of 5,000 or more mtV by 2019. It is possible that BMN is negotiating to acquire a further 15% of Vametco but this has yet to be confirmed.

BMN has a number of other potential very lucrative projects but this is the one that is currently generating large revenue, and from the figures above it can be assumed also large profits. Remember this does not show in 2017 accounts but will be recorded in the 2018 accounts for BMN. Seems to me to be a great time to invest.

Worth thinking about where you may think the sp is heading. My own target is 75p to £1.50.

Other than facts issued by the company the rest is purely my personal opinion and not to be regarded as investment advice. As always DYOR.

Regards. Pdub.

Well done knuttie. Good deal.

I note that SP Angel have reiterated their BUY rating for BMN. Good news.

I look forward to revised sp and vanadium price targets from both SP Angel and ARC following publication of production and financial data. I would expect that to be post Interims (September) rather than following Q2 update.

Regards. Pdub.

Maillotjaune I stand by my comment.

I have nothing more to add.

Maillotjaune I think you need to be better researched before posting. Q3 2017 Vametco update was published on 20 November 2017. The equivalent date for Q2 2018 update would be 20 August ! The results will be posted when they are ready. Just be patient.

And there most certainly was not a problem in the Q3 2017 update. Read the summary below from RNS:

""Vametco had a solid performance in the September 2017 quarter, supported by a rising vanadium price, which traded at an average of US$39.4/KgV1. This enabled revenue to increase by 29%, and EBITDA by 69%, compared to the June 2017 quarter. The first phase of the Vametco multi-phased expansion project was achieved in the quarter, during which Vametco reached an annual production run rate of 3,035 MTV. The completion of the expansion project will enhance Vametco's existing competitive position in a structurally deficit market."

Link to RNS for Q3 2017 Vametco update.

https://www.investegate.co.uk/bushveld-minerals-ld--bmn-/rns/vametco-3rd-quarter-operating-results/201711200700059378W/

I expect Q2 results to be excellent and one more step on the path to achieving proper value in the sp.

Regards. Pdub

On HL 26.75 / 27.1456

Alfa I suspect that many of us appreciate your scientific input to this bb. And I would say the same for Ophidian too.

Regards. Pdub.

Kevkan that is exactly the message I was trying to get across on this bb 4 years ago, 3 years ago, 2 years ago etc. Our CEO is exceptional, at least compared to others on AIM that I have met or who I have had the misfortune to lose money from their incompetence. Some here were very difficult to convince but I think now we are all singing the same tune in terms of respect for CEO Fortune Mojapelo. He is the key here in my opinion.

Ludeck you may well be correct. However something for you to chew on.

From RNS 09 August 2017:

"Under the oversight of Bushveld and Yellow Dragon, Vametco has commenced a multi-phased expansion project to increase annual production to more than 5,000 MTV over the next 3 years."

Clearly the expansion plans were already in place. The Vanadium price at that time was around $42 kgV. Let's call production costs $17, thus profit $25 before tax etc.
At $80 kgV profit is $63, a massive 152% increase in profit since August 2017. Not 10, 20 or 30%. Now that to me would be one hell of an incentive to speed up phase 3 production where practical !

That is all from me.

Regards Pdub

Thanks Paludina. Good to know. Perhaps H2 will be even better than I hoped then!

Fair point Paludina. I am as keen as everyone else to see Q2 figures. No choice but to be patient.

I also wonder if given the high price of vanadium they are advancing phase 3 more quickly. Not sure if there are significant engineering and construction constraints that would limit that. Others on the bb are far better qualified to comment than me. That aside, could the actual production for 2018 therefore exceed the published target.

I totally agree with you knuttie.

Regards Pdub.