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So with every Vanadium price rise BMN becomes even more profitable.

And the strong Dollar v Rand is also helping. The rate remains well above 18. Revenue in $US costs in Rand. All helps improve margins.

If there are investors looking for an increasingly profitable company that the market has not yet discovered so very low share price then some might think that BMN is on the list. With the potential for significant share price growth in my opinion I wouldn’t disagree.

As always do your own research

On 17 Feb I posted the following:

“… In both US and China (aka Asia) vanadium price already around $45 kgV and in Europe will soon be $40 kgV if as seems likely the rises continue.…”

Well today’s rise in FEV price in Europe will take the price over $40 kgV. Decent margins in Europe and very good margins in US and Asia. Looking very good for BMN in 2023

It is good to see that BMN have been flexible in their response to market conditions.

It appears from published numbers and their statements that when China imposed import duties they may have withdrawn from that market and at the same time the company increased sales of Nitrovan to the US which was the highest priced market.

In Q4 we see a leap in V2O5 production at Vanchem possibly in response to rising V205 prices.

Arguably developing rental contracts with a US partner was another example.

Very encouraging to witness the ability to adapt to changing markets.

Typo correction:

“… It would seem that BMN increasing significantly it’s output of V2O5 at Vanchem and soon to begin production of Electrolyte at BELCO could not have been better timed as the uptake of VRFBs accelerates… “

In fact don’t take my word for it … read this from 23 Feb:

“ BEIJING (Asian Metal) 23 Feb 23 – With the growing demand in vanadium battery industry, Chinese vanadium pentoxide powder 99.5%min market saw positive market mentality during the past week. Currently, the mainstream prices of Chinese vanadium pentoxide powder 99.5%min stand at RMB162,000-167,000/t (USD10.9-11.2/lb V2O5) EXW D/P, up by RMB1,000/t (USD0.1/lb V2O5) from middle last week. Considering that few producers have inventory pressure for the moment, insiders believe that the mainstream prices of Chinese vanadium pentoxide powder 99.5%min would stay firm in the coming week.”

So “mainstream” are VRFBs in China already that the large developments there are pushing up the price of V2O5.

It would seem that BMN increasing significantly it’s output of V2O5 at Vanchem and soon to begin production of Electrolyte at BELCO could not have been better timed as the uptake of V2O5 accelerates.

The global stationary energy storage market will be massive and there will be a number of technologies satisfying that demand. The rapid growth in contracts being announced for new VRFBs (and not just in China) is evidence that one of those technologies is VRFBs. FACT.

BMN will only need a small share of that market to generate significant revenue and profit and they are already discussing this with potential customers.

So what is your point TropicalApe and HMHG? Ignorance is nothing to be proud of

It would seem that the Chinese and now in many other areas of the world your comment is nonsense HMHG. You don’t even need to read between the lines. It is all there in black and white. I am very surprised at your ignorance. So I repeat … what is your point?

And what is your point HMHG?

TropicalApe what is your point?

Exactly right Tekanalyst. Now let’s all have a debate about the news of construction etc on target and discussion with potential future clients for this new revenue stream from a higher value vanadium product

Fascinating the minds of some pi’s. They are fixated with the process of news dissemination and completely ignore the excellent content of the RNS. Each to their own I suppose.

BMN are being conservative with their commentary about electrolyte production. However am I the only one that thinks this plant is going to be busy producing electrolyte given the rising number of VRFB projects being announced globally.

Won’t be many electrolyte plants outside China that have their own guaranteed supply of Vanadium. BMN leading the way on vertical integration and others following, just like electrolyte rental model

Excellent news that substantial progress being made with electrolyte plant and on track for H1 production.

Also very pleased to see BMN doing the right thing and RNS this info.

So the situation is that US and Asian markets are already very profitable at $45 kgV and European V2O5 prices having shown significant rises over last few months (Vanchem in last Q produced 211 mtV of V2O5)

Today there is confirmation that European FeV prices are around $40 kgV which means that market is also profitable.

Dollar Rand remains above 18 effectively increasing margins still further.

All this is happening just when BMN has recorded record production and has significant market ready stock. Furthermore it is possible that the electrolyte plant is being commissioned (to be confirmed) and will begin production in H1 adding another revenue stream from a high value product.

I have never seen BMN in such a strong position from the operational perspective. The professional analysts forecast significant share price growth with exchange rate and Vanadium price at these levels. I wouldn’t disagree. Some new investors may share that opinion.

Just my opinion.

Cindercone tell us something we don’t know about the workings of the financial system.

Your comments against the system are not particularly helpful. I have never expected anyone’s future share price or other predictions to be exactly as forecast. There are way to many variables as we have seen in global, regional and National disruptions that have affected BMN. That is true whether it be BMN, brokers or pi’s doing the forecast.

However that completely misses the point. Forecasts need to be based upon a set of assumptions and brokers do exactly that. Their reports are useful in that they contain a body of factual knowledge and some assumptions that are generally clearly stated. From that starting point they draw conclusions. The published reports are available for us to read, discuss, agree or disagree. To simply say “… the whole industry is one big scam …” is a nice headline but fails to add anything useful to this debate.

In any of these reports we know what the evidence is and what the assumptions are. In the changing world in which we live it is unlikely that all of the assumptions will be as predicted and this is likely to affect the outcome.

For instance in the recent ARC report they assume $ Rand at 17 and Vanadium price at $40 kgV to give an unrisked NAV of 12p. Now you can agree or disagree with their conclusions but at least you know how they were derived.

It will be clear to anyone following BMN that already the ARC assumptions appear to be too conservative as $ Rand is already over 18 with some analysts (though in fairness not all) suggesting over 19 by year end. Also we know that both US and Asia markets already at $45 kgV. If that is the direction of travel through 2023 the broker forecast will be well short of actual numbers for year, probably including share price. BUT in most of these reports they do acknowledge that reality may vary from the assumptions and often give various scenarios (I believe ARC suggest a risked NAV of 27.8p and un-risked of 19.45p in the above example.)

It is too simplistic to dismiss these reports just because they are paid for by the company (RBC certainly did BMN no favours in their report) or because outcomes were different to prediction. I think of these reports as hypothesis testing rather than rigid predictions. If outcomes are different then seek out the reasons why.

If you think ARC assumptions and / or conclusions are right / wrong and have alternative numbers and / or conclusions I would be interested to read them but not just some cliched comment about buying favours.

Just my opinion.

Sorry Cindercone but that post is not even worth commenting on.

Cindercone a remuneration package could be all cash of include shares. It really does not matter.

The Director paid in cash has a choice. They may buy shares or spend the money on house, holiday, etc. No guarantee.

The Director choosing to be paid in shares guarantees taking shares and that in itself is a vote of confidence in the company.

This is such a dead issue that has been discussed at length and in the end will make no difference to the share price.

How the company performs ultimately will. Watch BMN in 2023 and I believe you will see recent company operational performance translate into rising company valuation.

So do all the professional analysts that have published reports on BMN.

Directors are under no obligation to buy shares so there is no case to answer.

There is very little difference between ATM and BMN as both reward CEO with shares instead of cash and the one Director buy at ATM in 2022 was very small. V1per’s point which is what we are discussing was irrelevant.

I totally disagree DaisyDog

For V1per.

BMN
Shares in issue 1287 million
CEO owns 13.25 million = 1.03%

ATM
Shares in issue 1,517 million
CEO owns 15.3 million = 1.01%

I note that AV was issued 6000000 share options in 2022 as part of the remuneration policy, just like BMN rewards it’s CEO.

In last 12 months I can only find 1 relatively small Director Buy at ATM.

Your attempt to portray BMN in a negative light is meaningless and rather pathetic. The facts above tell the real story.

And you forgot to mention that from 2019 to 2021 the BMN CEO’s total remuneration package was more or less halved to reflect financial performance despite excellent progress in growing the business.

Just my opinion.

I think the clever traders / shorters will see the storm coming and get out or go long in good time. There will some less wise individuals that leave it too late and take the hit.