Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Can someone please advise on where the other 50% of Bushveld shares are held.
The lists provided by Lindon (£307m), Macanman (£230m) and Drifter (£61m) total £598m.
Are there a lot of private investors out there holding their shares privately or included in other broker funds not listed here e.g. Halifax/Interactive/IG/Barclays
Thanks for your response.
As I am retired I regret I do not have access to additional funds to buy more shares at this ridiculous price. I sleep well in the knowledge that my 550k shares will, eventually, provide my family with a secure future.
Best wishes.
Good evening Alfacomp
A little late but I took up your challenge to read the merger document, which I found to be very interesting and informative. Having followed this BB now for 12 months, the detailed information supplied by the very knowledgeable, and generous, posters on this board has built up my knowledge of renewable energy/storage, from virtually zero, to a level that I was able to understand most of the content, and am now further convinced of the potential for Bushveld in this fast developing market.
I counted a total of 24 references to the word “Bushveld”
JR
I enjoy reading your posts as, like you, I am an optimist and believe that funding will be in place to ensure the mine is built and the TORP’s fulfilled. As a realist I accept that this may incur further dilution and may end up with 14b shares in issue.
However, once the 14mt of product is being delivered, the company is making £1.1b profit and £700m is allocated as distributable profits, providing a dividend of 5p per share based on 14b shares, there is no way the share price is going to be languishing at 20p as that would give a yield of 25%. More likely the equity income fund managers will pile into this share until it reaches a more sensible yield of 5%, resulting in a share price of £1. So long term shareholders will see a capital return on their investment and a reasonable dividend.
IMO
Hi all
I have only been invested here for 6 months but with 700k shares at an average cost of 15p, like many others I have taken quite a hit on this investment.
There have been numerous postings on this board by investors either giving up, and crystallising their losses, or sticking with the company in the expectation of “it’ll be alright on the night”, and I have been giving serious thought about whether to hold on or bail out.
Having just come back from a long walk by myself, giving me time and peace to think about this some more, I have decided to hold for the moment for the following reasons.
From what I have read the sale of 13mt, at a profit of £85 per ton, would equate to an annual profit of £1.1b and if £700m of this was allocated as distributive profits to shareholders, which currently stands at 7b, the dividend per share would be 10p. However, if there is a strategic partner involved who purchases 5b shares @ 5p (£250m), the total shares would be 12b and the dividend reduced to 6p per share, which is still a yield of 40% on my average cost.
With 700k shares my dividend income, at 6p, would be £42k and would repay 90% of my original capital outlay in 2 years irrespective of any increase in share price during that period.
So for me, the significant potential for dividend income out-ways the current paper capital losses and strongly suggests I should hold, even taking into account that this is still a risky share.
I fully accept that my average is lower than many on here and if your average is 20p, the 6p dividend is still a 30% yield and the dividend income would cover 90% of your capital cost in 3 years.
Also, once this company starts making a profit and paying a 6p dividend, surely the Equity Income fund managers will be buying into this share and taking the price to £1 with a yield of 6%
All the above are my thoughts and opinions and are not to be construed as advice.
Hi all
Below is the text of an email I sent to Investor Relations on Saturday. After reading in today's press about £1b of foreign aid being diverted to a clean energy fund, my idea doesn't sound too crazy.
Good morning
I have been invested in Sirius for 6 months and hold 700k shares at an average of 15p, so are currently heavily under water. Having given the current situation a lot of thought, I still believe in this company and everything the BOD is doing, and have decided to hold onto my shares for now, but would like to offer a thought on financing as below.
This is probably lateral thinking gone mad, but has any thought been given to approaching the government office for foreign aid to place an order, and pay up front, for £250m worth of POLY4.
It is well know that the government has a legally binding budget to spend 0.7% of GDP on foreign aid, which this tax year amounts to £14b, and they always struggle to find legitimate projects to spend this money on.
We could offer to help them out by selling them £250m of POLY4 which they could distribute to developing countries as part of any foreign aid package. At the agreed rate of £115 per ton, this would equate to 2.174mt however, to give them an incentive to buy and pay up front, we could offer them 2.6mt for £250m equating to £96 per ton and with a value of £3m giving them a benefit equivalent to a 10% interest over 2 years.
As the government would be purchasing goods to be distributed I would not expect this to fall foul of the EU state aid rules. Equally, as this money has already been allocated to the taxpayer funded foreign aid budget, there is no additional risk to the UK taxpayer.
From a shareholder point of view, this would provide the immediate funds required without involving a strategic partner and without any further dilution. There would be a one off hit to shareholders in the year that the 2.6mt was delivered as the annual profit for that year would be reduced by 2.6mt@ £19 per ton = £50m. The effect of this on the 7b shareholders would be to reduce the dividend payment, for that year only, by 0.7p per share.
I hope you find the above of interest.
Hi Bella - very much appreciate your post. I have been invested in BMN and reading this bulletin board since May, and have read the posts about Lithium batteries bursting into flame but not taking on board that this could impact on me personally. I was mowing the lawn this afternoon with my small Mountfield battery mower and suddenly woke up to the fact that I was storing 2 fully charged 96Wh Lithium batteries in a cupboard in the kitchen. These have now been moved to the shed at the bottom of the garden, so thanks again for highlighting this issue.
Many thanks for the feedback to my post, with follow up responses below
Verde
The missing factor in your calculations is that the rules relating to SIPP's can and do change over the years - at the moment you can take out what you want, but this has not always been the case
Totally agree with your comment but at some point, if you are going to invest, you need to make a decision based on the information to hand at that point - nobody can predict who will be in government in 10 yrs time and what their savings/pension policies would be.
Chrisatbirdies
Hi pickler
£15k o.a.p from the government in ten years time?.
Its £168.60 at the moment. Which is £8767 a year.
So I think you might be a bit short there.
Yes, I think you are correct that £15k pension in 10 yrs is a little ambitious. What I was trying to do was to simplify the calculations for the SIPP/ISA income and to assume the full tax free pay was taken up by other income, which could be state pension or part time working etc.
M20ASH
If you are a higher rate tax payer, £25K will be added to your SIPP and currently you can claim another £25K back from HMRC giving you the 40% relief. You can then add this additional £25K and get further tax relief and so on.
Agreed, this is what would happen if you are paying direct into a SIPP rather than through PAYE. The end result will be the same with the same total of tax relief paid into your SIPP by the government.
Appychap
The state pension is fixed now, and is not set to rise. The government pension fund is also set to run out of cash by 2032, unless changes are made or contributions to NI increase dramatically.
Also I’m below 30 and a sipp would lock my money in for over 30 years. I like to have money available for opportunities that come by me
Fully understand where you are coming from, it is hard to imagine tying up your funds without access for 30 yrs. However, just bear in mind if you are a 40% tax payer what the value of your SIPP would be in 30 yrs time compared to your ISA.
A £100k invested in an ISA achieving a 5% annual return would be worth £432k in 30 yrs.
A £168k invested in a SIPP, including the tax relief, would be worth £726k with tax due, at 20% on withdrawal, of £145k giving a net sum of £581k.
Hi All
This is my first post on this bb - I am currently a STH but expecting to become a LTH - started following this bb in May and have been very grateful to all the serious posters on here for sharing their knowledge, which has certainly gone a long way to helping me to decide to invest in this fabulous company. The reason for my post today is to respond to SpeadyMeadie regarding investing via a SIPP or ISA.
Assumptions
Invest £100k from own funds plus tax relief from government funds in a SIPP
Tax Relief 20% or 40% on investments in a SIPP
Fund value to double after 10 yrs
Tax Free Pay £15k
Standard Tax 20%
Higher Tax 40%
Higher Tax Threshhold £55k
State Pension £15k
Tax Free Pension Withdrawal 25%
Initial investment in both the SIPP or an ISA, from personal funds, will be £100k
Government contributions of £25k or £68k added to the SIPP fund
After 10 yrs the SIPP fund will have a value of £250k or £336k compared to the ISA having £200k
Tax free pay covers the state pension so all income from SIPP or ISA is taxable
First £40k pa of taxable income will be at 20% and the rest at 40% on income from a SIPP
There is no tax on income from an ISA
If your funds are in a SIPP, and you don't want to pay tax at 40%, you will need to take a maximum
of £40k per year from your fund and pay £8k per year in tax.
With a SIPP value of £250k you can take a tax free payment in the first year of £62.5k.
Your final SIPP fund of £187.5k will provide you with net income of £156k, plus £62.5k tax free, which is £118.5k more than your original investment.
With a SIPP value of £336k you can take a tax free payment in the first year of £84k.
Your final SIPP fund of £252k will provide you with net income of £210k, plus £84k tax free, which is £194k more than your original investment.
Your ISA fund shows a £100k increase on the original investment.
If you ensure you only pay 20% tax in retirement, then a SIPP is financially better than an ISA.
Another consideration is the flexibility of an ISA in that you can withdraw any amount, or all, in a lump sum without paying
any tax, which might be useful if you were investing for a large retirement purchase.
To take the whole value of your SIPP (£250k) in one payment would incur tax at 20% of £8k and tax at 40% of £59k.
This would reduce your total fund to £183k, including your tax free payment - compared to the £200k in an ISA.
To take the whole value of your SIPP (£336k) in one payment would incur tax at 20% of £8k and tax at 40% of £85k.
This would reduce your total fund to £243k, including your tax free payment - compared to the £200k in an ISA.
IMO - If you are personally investing the same amount of money into a SIPP or ISA, then the tax allowance
from the government, and the 25% tax free withdrawal, would suggest that a SIPP is better than an ISA.
I would welcome any constructive critisism of my assumptions and calculations, but hope you find this post useful.