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It is disappointing that the company had to lower the group production target a little due to the slower than expected ramp up of Kiln 3 but they also reported significant improvement in production at kiln 3 since end of period and remain confident of reaching the target of a run rate of 5000 to 5400 mtV pa by year end. That will lead to a very significant improvement to revenue and a reduction in costs which hopefully will see operational profit continue to improve and a return to profitability for the company, if not achieved in H2 which it may well be anyway.

For me the most significant positive change was Operating Profit.

This is a company mining and producing vanadium and vanadium products largely to the steel market so Operating Profit is a key parameter. To turn a $19 million loss into a $6 million profit is a huge step forward. Particularly so as that was done despite the closure of Kiln1 at Vanchem and a slower than hoped for ramp up in production of the newly reopened Kiln 3.

Yes UKSteveg but in real world not accounting world take a look at stock. This for accounting purposes is valued at cost to company in this case $18 million.

I understand stock level to be 826 mtV at end of June so valued at $22 kgV in the accounts. At a sale price of $35 kgV that stock is worth on the market $28 million and in theory would wipe out the H1 loss plus some.

Interesting thought.

… necessary post as some may have forgotten the huge progress made compared to H1 2021. I suggest folks read it again to remind yourselves of the very significant progress made.

From Interims 2022 RNS:

Highlights

§ Revenue of US$76.2 million (H1 2021: US$47.0 million) and Adjusted EBITDA1 of US$15.6 million (H1 2021: Adjusted EBITDA loss of US$10.8 million) supported by higher vanadium prices and the weaker ZAR:USD exchange rate's positive impact on costs.
§ Operating profit of US$6.1 million (H1 2021: loss of US$19.7 million).
§ Cash balance of US$7.0 million at 30 June 2022 (US$15.4 million as at 31 December 2021), with ongoing positive cash generation since period end.
§ Free cash flow2 of US$7.1 million (H1 2021: negative US$19.8 million).
§ Total borrowings of US$76.73 million (31 December 2021 US$ 80.9 million).
§ Financial close achieved at Vametco's mini-grid project, enabling site clearance and progress with many project activities.

Cindercone could you tell me which year Fortune was paid $500k? I have checked and I can’t find it.

So rather than just highlighting higher prices in US (and why wouldn’t any genuine investor) the average realised price in H1 was US$46.4.

Good to see Chinese prices rising. Perhaps BMN will increase sales to that region as it did last time Chinese prices surged ahead.

However the company’s largest market is the US where prices remain higher than RoW. In the H1 interims those higher prices were confirmed in the following paragraph:

“ During the period, Bushveld benefited from the robust vanadium demand and higher prices in the United States relative to other regions, by selling a larger portion of its sales to the United States. Sales to the United States were higher than other regions due to increased demand from the North American steel and aerospace industries”

So no ifs or buts .. clearly confirmed “… Bushveld benefited from the robust vanadium demand and higher prices in the United States …”

Halespur under accounting rules Inventory is listed at cost to the company, not the sale price. The market value of that inventory should be quite a bit higher particularly with high US prices.

Lindon that is all true but has been known for some time. The important bit is that next year BMN will start producing electrolyte. Without IDC intervention who knows when and how that could have happened.

The IDC does not appear to wish to “screw” its partners so I suspect their part of the investment will simply be treated in effect as a loan and I don’t anticipate repayment to be on terms unfair to BMN.

I could argue that BMN starts with a 55% stake increasing to 100%. Same stats just far more positive viewpoint.

Just my opinion.

The IDC on their own website last time I looked don’t wish to be “owners” of facilities like BELCO. They are there to help start up these developments. If they stick to that philosophy I would expect them to have the investment paid back and BMN to become 100% owners. Of course I cannot guarantee that will happen but that is my interpretation of how the IDC says it operates.

This was just too good to miss. Small top up this morning to go past a milestone number for me.

HippyDays I don’t disagree with you. His salary viewed from my position does appear to be generous at first glance.

However a couple of points worth remembering:

1. His total remuneration package over the last two years has halved, reflecting the financial performance of the company. That is the Remuneration Policy working as it should.
2. I often look at the other junior mining explorers that I invested in or watched back in 2013 / 2014 when I invested heavily in BMN and compare what they have achieved in operational terms with the progress made by BMN. In virtually every case the answer is virtually nothing. BMN couldn’t be more different. Fortune first switched from an iron ore wannabe to Vanadium in 2013, and what a good decision that was. Then he laid out his aim to build a large low cost vertically integrated vanadium platform and has focussed on delivering that. Ok so he doesn’t play the PR game well but he has done a brilliant job delivering the foundations for a profitable mining and production company with two of the world’s primary production plants and huge in ground resources, plus real progress on the electrolyte manufacturing plant. The energy storage business has been slower to develop but progress there too. Don’t forget Fortune went I think three years without a pay rise before finally benefitting from the large profits in 2018, just like his shareholders. One can argue about what the correct salary should be for building this business but there is no doubt that Fortune has delivered on the business side when most of those CEOs have not.

I know there will be those that say look at the share price. To them I say look at the business and how it is growing.

Just my opinion.

https://www.asianmetal.com/VanadiumPrice/Vanadium.html

Oh dear. Did you not read my previous post? Surely it wasn’t too difficult to understand?

Stop cluttering the bb with useless drivel.

Filtered.

ARCM if you have something intelligent to say then say it. Otherwise don’t waste my and everyone else’s time.

Thank you.

Yes it does but nevertheless 826 mtV (costs paid for) is worth on the market what at $35 … $40… $45 kgV how much? A lot more than $18 million. Even at $30 kgV = $24 million

And don’t forget the higher achieved prices in the US, as confirmed in the RNS.

I can’t confirm this as I have not seen the source but faramog posted elsewhere that the inventory it end of June stood at 826 mtV. Depending on V price that represents US$30 to $40 million of stock for which production costs have already been paid. Nice thought.

“ During the period, Bushveld benefited from the robust vanadium demand and higher prices in the United States relative to other regions, by selling a larger portion of its sales to the United States. Sales to the United States were higher than other regions due to increased demand from the North American steel and aerospace industries.”

Note higher prices in US. Good to have confirmation of what most here understood to be the case.

And there has been debate about future ownership of BELCO. That is once again clarified in the RNS:

“ BELCO electrolyte plant will remain within Bushveld, both operationally and in ownership, post the Bushveld Energy carve out.”

Also confirmation that the plant “ is expected to enter into operation in H1 2023 with an eventual ramp-up to 8 million litres per annum”