Member Info for Pdub

ARCM your post at 08.52 may well be part of the problem. Nothing to do with BMN, just an attack on other posters.

Sadly such negativity dominates here so debate has moved elsewhere. Pity.

I found this part interesting with respect to those who have expressed concern about missed targets. It demonstrates that sometimes original targets turn out to be impractical and that a change of course is necessary, as happened in the quoted section below. What may appear to be missed targets mat actually be a strategically wise change of direction, as is the case here:

“ Background and context
Following its acquisition of Vametco in 2017 Bushveld began investigating the potential to increase that operation’s production capabilities from its then average annualised rate of around 2,800t V to a target of over 4,000t. However, it later concluded that the technical and capital risks associated with such an ambitious expansion were prohibitively high given that Vametco had never previously operated at such an elevated production level under its current single-kiln setup. Moreover, growth solely focussed on Vametco’s existing infrastructure would further concentrate Bushveld’s vanadium product range on that operation’s main output Nitrovan, limiting the group’s product diversification optionality.
The subsequent acquisition of Vanchem in 2019 greatly enhanced Bushveld’s operational capacity and flexibility, as well as its product diversity, thus providing more options for growth. From that point on Bushveld modified its conceptual growth plans with a view to optimising each of Vametco and Vanchem in a way that would maximise synergies between the two (e.g. through sharing intermediate products, be that ore, mineral concentrate and/or intermediate-processed vanadium products) while enhancing the consolidated group’s market penetration potential through product diversification.”

From ARC Report. Makes good reading from opening paragraph.

“ Completion of commissioning of Kiln 3 at Vanchem last month keeps Bushveld on track to end 2022 with a sustainable production run rate of 5,000-5,400t V pa, a solid platform from which to refocus on longer-term growth. Fully utilising the vast array of processing infrastructure at Vanchem to treat feed from an expanded mining and ore concentration operation at Vametco makes a lot of sense given the fixed component of costs at the former and the large mineral resource at the latter. Bushveld’s recently announced plan to grow group production in phases to an ultimate rate of c.8,000t pa is a capital efficient route to unlocking these synergies, allowing the extra cash flow delivered by each stage to be leveraged for the next. The initiative could lower C1 unit cash costs at each operation by over 20%. The US$151m estimated total capex is higher than previous expectations, but we believe it is significantly less than the expenditure that would be required to deliver the equivalent additional production capacity from a greenfield magnetite vanadium project. If achieved, we estimate the ultimate targeted rate could see group consolidated EBITDA rise to c.US$100m pa (assuming a US$40/kg FeV price). Bushveld will only proceed once it has demonstrated sustainable cash generation at its near-term target production rate of 5,000- 5,400t pa, and once it has sufficient balance sheet strength to do so. Our 18p valuation conservatively incorporates just 0.5x our estimate of the NPV accretion from the planned expansion, suggesting ample scope for share price upside as further growth is delivered.”

Lindon you may be interested to know that someone has posted elsewhere an email reply from Chika in which with regard to BELCo she clearly states that the transition to Bushveld Vanadium hasn’t been completed yet but will be before the carve out. Interesting?

Calamari I am sure everyone is getting bored with this so to give other readers a well deserved break from my nonsense I will make this my last post.

What I know is that I have on numerous occasions said that although Vanchem costs are higher the prices they receive for some of those products are also higher. I recognised that in my first post.

What was good news for me in the presentation was that the CEO told us that these products also got better margins. Some invested in BMN might see that as very good news. I am delighted to know that.

Yet strangely you are more interested in trying to trap me rather than share my pleasure at this fact. Not that I mind. In fact I don’t care one way or the other. On this matter the only thing I am interested in is that Vanchem can achieve good margins for its products and that as costs reduce those margins will only increase.

If that makes me a bad person then guilty as charged.

Just my opinion.

When Calamari?

Thanks Cindercone. I think we all do!!!

Cindercone it’s an AIM growth business. The path has been a long one. Perhaps longer than we expected but the story ain’t over.

Many had the chance to take profit in 2018. I get the feeling more chances will come as they grow the business.

If this share price never recovers then I will look stupid. There are worse things in life.

However when this company finally does have a share price that reflects a sensible valuation I shall enjoy the moment.

ARCM changed my mind on account of the tone and content of your post. I will respond.

First read what I wrote carefully. I did not say that I was puzzled why you responded to me. I said I am puzzled why you would want to distract me from such a positive point! That is a completely different point so do not misquote me.

Second if you think I am patronising that is up to you. My post to you addressed the points under discussion and I was polite and courteous. Yours targeted me. Says all I need to know.

You are entitled to be as surprised as you like by what I write. What is your point?

You are free to discuss whatever you like. Who is trying to stop you. Sounds a bit paranoid. It is interesting that you responded to such a positive piece of info from the AR with a negative that was unrelated to the point I made. Some might be forgiven for thinking you had an agenda.

Happy to engage you in sensible polite discussion but if you wish to dish it out expect to get it back. I would prefer not to have this kind of engagement but that is up to you.

ARMC I have said quite enough on that thread.

Cindercone that is just an opinion … yours. And I respect that.

However I strongly disagree about his remuneration.

First I need to correct you on a point of fact. Fortune promised to create a large low cost vertically integrated vanadium platform. They are working hard to create a sustainable business that is profitable but his promise was the above. And they are a long way down the path of delivering that.

The remuneration package is a little complex but you should read it. It does include sections on company finance etc and CEO package over the last three years reflects this.

But thankfully it doesn’t end there. It is structured to encourage good performance over a range of aspects of managing BMN. The BoD have done a good job at sorting out production problems and keeping the company on its growth path despite very challenging global conditions and at times low V prices, whilst keeping dilution to the minimum (just 13% in last 3 1/2 years).

Whilst rightly the CEO has not been rewarded to the extent that he was following the highly profitable 2018, it is absolutely right that the current successes of the company are recognised.

You see it differently. I can live with that. .

Cindercone Faramog posted figures (not sure if it was here) that showed his remuneration from 2019 to 2021 reduced from over $800,000 to something over $400,000. (Sorry don’t have actual figures in front of me). I think losing around $400,000 off your annual package would amount to a certain degree of suffering to any fair minded person.

Moving on.

Disgruntled you recently called me a broken record. Take a look in the mirror.

The world has moved on. Most of the criticisms the BoD have been sorting out.

Progress is being made on many fronts. Wake up. Smell the coffee.

The remuneration package is designed to encourage this. The very large fall in CEO remuneration over the last two years (more or less halved) reflects the balance sheet and share price. But they are rewarded for building the business. I am happy with that.

Even slow progress at BE has to be seen in the context of a brand new global industry that has developed at a pace that has certainly held back the players including BE.

ARCM I am sure you had noticed that my comment was about something VERY positive that I was not previously aware of.

We all knew that Vanchem has higher costs than Vametco so I am guessing that those who don’t scratch beneath the surface assumed that it’s products are less profitable than Vametco’s.

The more observant among us will have noticed that some Vanchem product prices are also higher. This has previously been in the public domain also.

So the VERY positive point from the presentation is that according to FM Vanchem’s products can also attract ‘better margins’. I would imagine many here were not previously aware of that.

I am puzzled why you would want to distract me from such a positive point!

However I will add that if anyone has been following my posting they would know that whilst BE has great potential I recognise that the sales of vanadium products to the steel industry remains the mainstay of BMN and that has been the focus of my attention. That may help you to see why this is such important news to me.

There are those who have been more excited about BE than I am and follow the energy storage part more closely. They are better qualified to answer your point. BE certainly offers massive potential for growth and shareholder value but whether I am still alive to benefit from that is a tricky question.

I will add that Eskom is certainly not the be all and end all of the energy storage industry in S.A. If BE either by choice or necessity needs to focus on smaller scale off grid scenarios I think that could turn out to be an excellent niche market for BE. That could greatly benefit LTHs in BMN/BE.

For now I am very satisfied with the progress made at the two production plants to first stabilise and then expand and diversify production and control costs. Everything seems to be in place for a profitable 2022 largely from sales to the steel industry and a larger market share in the next few years.

Just my opinion.

Good to hear Fortune reinforce the point that whilst costs are higher at Vanchem compared to Vametco so are the prices achieved for the specialised products made there.

What caught my attention was the he clearly stated ‘better margins’!

And those margins will only grow as Vanchem costs fall in line with the ramp up in production through this year.

I have said it before but it needs repeating. Despite the short term impact on the share price caused by Duferco selling the shares from CLNs isssued for purchase of Vanchem that plant may yet prove to be the Jewel in the BMN crown.

Just my opinion

ARCM I think my response to your post earlier was a little harsh and I apologise for that.

What you need to understand is that in 2018 the V price was very high and peaked at over $120 kgV. BMN was making huge profits and the changes to rebar regs in China made it look like that would continue. BMN under those circumstances did not look over valued. Anything but.

However for various reasons the V price reversed and so did the share price. After the event very easy to be critical but think on this. If today the V price was over $100 kgV and BMN was making huge profits do you think the company would be over valued at 50p?

It is not easy to sell when you believe the price will go higher.

At the time my average was very low single figures and my intention was as a long term holder. Others were trading, just as Coffeecups claims to have done. Well done them but horses for courses.

It is easy to be wise after the event but you wait until the next share price bull run. You may find out how difficult it is to know when to sell

You need to set up a Telegram account and then contact the administrator of the Bushveld Minerals group

I will try to get someone in the know to post a link re telegram.

Well done on that profit Coffeecups. If true you did well and making a profit is what we all hope for.

See if you can manage to keep the cheap personal attacks out of you posts. Makes you look like like a bully which I am sure is not your intention.

Oh do be quiet Coffeecups. I cannot take seriously anyone who cannot even spell a four letter name correctly. Bad mannered as always.

And thank you for the personal attack. You have vindicated perfectly my earlier comment.