Member Info for Pdub

Part 2

These solutions, negotiated before or during H1, should already be producing higher sustained output from Vanchem based upon the July output total. Q3 Update will hopefully confirm this. The new measures implemented by Craig should contribute towards raising production still further and perhaps will result in 180 mtV per month being achieved by end Q4 or into Q1 2024 (Craig’s own target).

As always just my opinion. DYOR.

Part 1

I would like to pick up on a point raised by HarChris at 10.01 (which I agree with!) and continued in my post of 10.10.

For over a year BMN have been trying to raise production at Vanchem Kiln 3 as quite apart from the obvious benefit of increased revenue this will lead to lower production costs through economies of scale.

The initial commissioning issues seem to have been resolved with the help of an experienced consultant. However in Q3/4 last year it became evident that load shedding was causing unplanned shutdowns and the company estimated a production loss of 200 mtV in H2. It was also becoming evident that the feedstock being supplied from Vametco was causing production issues.

Despite these two major issues production in three of the last 4 Qs at Vanchem was 350 or more mtV, compared to pre Kiln 3 commissioning of around 290 mtV. So they had increased production but the target was missed by a significant amount. Clearly solutions were needed. Months ago negotiations were carried out on two fronts to tackle the problems.

A new contract was put in place with the power supplier to reduce or eliminate planned load shedding stoppages. This was similar to Vametco and the company indicated during H1 that this was successfully implemented.

The feedstock issue was resolved with a contract with a new supplier at the same price as Vametco feedstock. This would reduce the unplanned stoppages caused by feedstock issues.

So with these two issues apparently resolved and with production numbers from March and most of April indicating a production rate of more than 400 mtV per Q it was not unreasonable to expect record production at Vanchem in Q2. That did not happen so why not?

We are told that the new feedstock supplier failed to deliver as expected in Q2 so unsurprisingly more unplanned production stoppages occurred probably caused by the necessary continued use of the poorer feedstock. And then yet more bad news in that the electricity supply suffered interruptions, not through load shedding, but because of problems with the electricity supplier’s infrastructure. Nothing BMN could do about either of these problems.

One positive point to note in Q2 Update was the significant drop in Vanchem Rand production costs. This will be a number to watch in Q3 Update.

The news from Vanchem in July has been better. Finally the plant is being supplied with the better quality feedstock (July instead of the expected April) and we are told that production was 158 mtV, possibly a record for one month since BMN took over the plant. We know that the load shedding agreement is working so unless there are more unplanned interruptions to power supply or unexpected issues Q3 should finally deliver production in excess of 400 mtV.

I don’t expect significant cost reductions at Vametco until the issues outlined in Q2 Update are resolved.

July production was over 150 mtV at Vanchem. If that is maintained then expect further cost reduction through economies of scale.

If Craig achieves 180 mtV per month by year end then yet more cost reductions may be delivered.

Apologies typo in previous post. Corrected version:

Dollar rand 19.21 this morning.

Most BMN production costs in Rand (eg wages, power, etc)/Most revenue in US$ (eg from global sales)

The weak Rand helping those margins.

Dollar rand 19.21 this morning.

Most BMN production costs in Rand (eg wages, poor, etc)/Most revenue in US$ (eg from global sales)

The weak Rand helping those margins.

DBB that cracked me up. Fantastic imagery.

I gather from your comments DBB that Trevor and others didn’t find my posts helpful. Oh well can’t please everyone.

However each post attracted a few recommendations so presumably some found them interesting and/or helpful. That’s good enough for me.

Some background information taken from BMN website:

Mining

* Three large, high-grade, primary vanadium assets and JORC-compliant resource base 546 Mt (100% basis), including 75 Mt (100% basis) of JORC-compliant reserves

* Well-serviced, with logistics infrastructure

Processing

* Owns two of the world's four operating primary vanadium production processing facilities

* Flexible & Scalable

Vametco (74% BMN owned)

Mine & Processing Facility

* Life of Mine:  >30 Years of Ore Reserves

Vanchem (100% BMN owned)

Processing Facility

Brits (62.5% - 74% BMN owned)

Mine

* Outcropping Strike Extension of Vametco Mine

* Potential for Additional Ore Feed for Vametco & Vanchem

Mokopane (64% BMN owned)

Mine

* Mining Right:  30 Years, Executed in January 2020

* JORC-Compliant 298 Mt Resource, Including 28,5 Mt Reserves with Grades of 1,75% V2O5 In-Magnetite

BELCO (55% BMN owned)

Production Plant

* 8 Million Litres Electrolyte

* Currently Being Commissioned

This bb is about Bushveld Minerals (BMN).

Whilst the company is listed on AIM its mining and processing operations are focussed on the Bushveld in South Africa, from where it gets its name.

This may be of useful background information about The Bushveld to anyone researching BMN:

“The Bushveld is one of the most mineral-rich regions of the world. This is due to the Bushveld Igneous Complex, an extremely rich saucer-shaped geological formation that stretches over more than 50,000 square kilometers. This formation contains most of the world's reserves of minerals such as andalusite, chromium, fluorspar, platinum and vanadium. The complex includes the Merensky Reef which is the world's biggest source of platinum as well as platinum-group metals.

A reminder:

Interims due by end of month.

Update on MUST / Enerox / BE shouldn’t be too far off


Refinancing general meeting notice hopefully not too far away.


Minigrid switch on 
BELCO production commencement / contracts?

Q3 Update might be rather good for Vanchem if no more unexpected issues

Info on sale of Lemur coal project? 


Not bad for starters. 


Could do with better news on V price although I understand US prices still higher than Europe / China 

No guarantees before news of course but potential for plenty of positives in coming months. 


As always just my opinion. DYOR

Phimx yo have been trying to make the idea of holders accepting a 5p offer sound acceptable all day. I think we all know your opinion by now.

I disagree and have given my reasons. Believe what you like. I do not in any way share your idea of a 5 p take over.

There really is nothing more to say on this. Time will tell. If a take over at 5p (haha) happens I will apologise to you. When it does not I expect you to be a big enough person to apologise to me.

Nothing more to say on this

Phimx I have debated and disagreed with you and I have not abused you so if that comment was addressed at me then utter nonsense.

I totally disagree with the idea that a 5p offer would be attractive to many shareholders. Most have a higher average than that so your comment makes no sense to me.

And anyone familiar with BMN will know that the potential value here is way higher than 5p.

No guarantees of course but we all have to make value judgements.

so ****roach (sorry but i believe lse rules state english)

joined today and trolling several bbs. what a surprise

one more to be filtered.

la cucaracha meaning ******* roach in spanish in case of doubt.

la cucaracha meaning ****roach in spanish.

no need to say more

Now Phimx you really have left the road. I concentrate on The operational progress of the company. That remains my focus under the new CEO.

Don’t try to deflect from the fact that it is you banging on about a low ball take over at a price below the average buy price of many shareholders.

Ain’t happening and you know it.

It’s a pity Phimx that you don’t have access to the other BMN platforms. You may then have a better grasp of what is happening.

Keep fantasising over a low ball take over if it makes you happy. I will stay with reality.

Codejunkie every so often someone tries to start a take over rumour. This one at 5p seems to be more silly than most and I hope no one is taken in by this.

Just before the TR1 at 15.58 the sp was 1.975p

At close 32 minutes later it was 2.15p … a rise of nearly 9% after another 5 million plus shares were bought.

Monday could be exciting. I wonder if KS is still buying?