Member Info for RichKen

In the Steel sector

• Circa 90% of vanadium demand is underwritten by the steel industry where it is used as an additive
• China is the largest market for vanadium
• The country’s vanadium consumption is anticipated to grow at a CAGR of 2.3% up to 2027 due to a revision of the tensile strength of steel rebar products, announced in 2017
• China’s new standard is designed to limit and eliminate the use of inferior steels in construction (Grade 2 rebar):
? Grade 3 (400MPa), Grade 4 (500MPa), and Grade 5 (600MPa), will require 0.03% V, 0.06% V, and more than 0.1% V respectively

Energy Storage
Vanadium’s unique characteristics positions it well for large scale, long duration energy storage using VRFBs
• VRFB technology is already in commercial production with large (MW) scale deployments globally
• China’s new National Development Plan’s (Document #1701) focus “includes 100MW-grade, vanadium redox flow battery energy storage stations”
• Impact on vanadium demand significant as vanadium comprises 30-60% of cost of VRFB systems
• Commercialisation of Energy in Europe, EC report: there will be economic potential for very large amounts (about 400 GW) of storage in the EU
• The amount of vanadium used for energy storage has doubled in the past 12 to 18 months, according to Vanitec

So the market is 100% growing but the supply is not keeping up.

Electrolyte Manufacturing
• Building and operating an chemicals plant to convert vanadium feedstock into a liquid electrolyte
• Selling electrolyte to VRFB companies or direct users / buyers of energy storage systems

Sell and install VRFB
• Re-selling VRFBs as a local, value-adding partner in African markets to VRFB manufacturers
• Developing a local logistics chain

Developement of new projects
• Identifies sites and defines the economic business case for VRFB installations
• Designs the technical and commercial structure of projects that use VRFBs
• Makes direct investments into such projects

Rent Vanadium Electrolyte
• Offers a new product that retains ownership of electrolyte and rents out vanadium to the VRFB end user
• Provides a product essential to cover vanadium price peaks and produces a pricing strategy to compete with lithium ion cost reductions

Vanadium Redox Flow Battery Assembly
• Invests in the construction of an assembly plant for a VRFB product (that will be operated by another party)
• This longer term opportunity could involve direct investment into a VRFB company that would own the facility

Bushveld Minerals Company Structure
• Outline a capital allocation framework and dividend policy in Q1 2019
• List on the Johannesburg Stock Exchange in the near term
• Develop organisational capacity to align with the Company’s
growth

Bushveld Vametco
• Enhance Vametco’s operational performance
• Targeting a production platform of 10,000 mtV in the medium term
• Mokopane Vanadium Project - Secure a New Order Mining Right
• Completed second phase of exploration programme at Brits, results will be provided by Q1 2019

Bushveld Energy
• Delivered the first VRFB project with Eskom in CY18
• Grow the VRFB project pipeline across Africa
• Supply electrolytes to downstream stakeholders in the vanadium battery supply chain
• Develop an electrolyte manufacturing plant, with minimum capital expenditure
• Design and implement a vanadium electrolyte rental product

Organic growth
• Leverage high quality vanadium resources
• Existing global vanadium market share of c. 3%, expected to
increase in the near term

Targeted brownfield opportunities
• Continued focus on enhancing value through targeting brownfield opportunities
• Diversify product portfolio
Targeting a production platform of 10,000 mtV in the medium term

Bushveld Minerals have a very clear strategy to grow.

Excellent summary Pdub.

You have hit every marker on the head which makes this a compelling investment.

The upside potential is huge. This company has every key piece of the jig saw in place.

It is and will be a perfect stock in 2029 and 300 to 400% growth is highly likely this year.

Cheers RK

Simple.
- This company is making a huge profit every week - over £1 million (2018 accounts due in March)
- They have resolved the Vametco mine throughput issues and control by ramification in structural management and maintenance
- They have an initial production target in 2019 of 3200 to 3400 mtV
- Vanadium pricing is holding well in Q1 and is likely to rise after the Chinese New Year
- BMN have two key products being shipped (60% to the US where FeV prices are strongest) Nitovan 12 and Nitrovan 16 (both superior products to standard 80% FeV as they only need 600 grams per tonne rather than 1000 grams per tonne)
- Bushveld Energy is running final settlement tests days with there VRFB at Eskom. Ready to start the full 90-day evaluation of the 120kW/450kwh VRFB at Eskom. It is working well as witnessed by investors last week.
- Bushveld Energy are bullish that the successful completion will bring significant contracts to Bushveld Energy
- Bushveld Energy is proceeding with the pilot plant for Electrolyte at Vametco
- New Electrolyte plant estimated with $10 million is funded already in partnership with the IDC and this will have the facility for electrolyte and VRFB manufacturing on its site in East London SA ready for the end of Q1 2020
- The switch to Vanadium Redox Flow Batteries has won much praise from the SA Government who are promoting the needs for mining and other industries to switch to renewables and energy storage
- When you have the President of your country pointing the finger at your technology what larger endorsement do you need!

- The company have a full expansion capacity vision to grow to over 10,000 mtV over the medium term

- Bushveld Minerals will be listing the company on the JSE - WITHOUT resulting in any dilution of the company and the need for any more shares on to the market which is very good for current and new shareholders.

- New projects will be debt financed if required through leverage of high cash generation from existing assets.

- The icing on the cake will be the confirmation of shareholder dividends from the strong profit generation!

- The whole management team and workforce are highly motivated to succeed and grow this business!

The company is in the strongest position with a growing market and will be in the strongest position to be a major player in the huge energy storage market worth $50 Billion by 2027 and which will need around 80,000 mtV just for the VRFB market by 2027 based on extensive market research.

This is one compelling investment! It is a VERY STRONG BUY!

Those selling will have tears in the eyes when they see what this company will have achieved in the months and years ahead. Many may not see the light and be a little impatient. But if you are patient you will be well rewarded!

Cheers RK

Our shorter was definitely not happy with my 4 part "why you should invest in Bushveld Minerals?" set of posts. The focus was on research and finding a company that is undervalued!

The opposite of shorting is choosing a company because it is so undervalued and has so much potential that it is likely to ballistic! This might just be it!

Great Post Dagnamit! You are on the money there!

That is what our business is worth today. Let alone what it will be worth when the market understands it fully and we have a tech PE.

Thanks, Knuttie. You are a rock and full of wisdom and it is much appreciated!!

The day is planned with a few distractions and a friend to drive me to and from the hospital just in case I am feeling a bit wobbly!

Multiple LTH's will be significantly down from the high of 49.4p. However, until they sell they are hugely up from there starting point and in many cases multiple million pounds up!

They are unlikely to be selling any time soon. There will be some who trade a part of there holdings on the way up and the way down. This is not for the faint-hearted. Many just invest and wait and play the long game and for most this is the safest and it is where the fundamentals come into play. Once the next news comes along which will not be long you can be sure you will disappear because this will be returning and exceeding previous highs.

I am clear and confident in the future here. Your opinion changes nothing to me or other long term holders and our confidence is backed by knowledge and trust.

Alfa is not spinning any data he works off the facts of the day. He is much closer to this company than you are and his knowledge with may other here including me makes us sure as sure where we are heading. You are looking in the wrong direction I am sorry to say. You may look very wrong very soon.

Off to spend some quality time with my good lady! Good night.

Thanks. RK

Thanks Alfa. She is in good shape. Ready for the big operation on Tuesday. We are both very nervous but she has a great team who are going to complete the 9-hour operation!

Not quite sure where my mind will be on Tuesday. But I know all your thoughts and prayers will be with us!

Knuttie has been through it all and his support has been much appreciated! our thoughts are with Pdub too!

Alfa your support and information is the backbone of this investment for many, as you provide such a resource for all investors! The Bushveld Perspective and your recent visits to Bushveld Vametco and the Eskom battery test site have been very much appreciated by every reader here!

Thanks So much! Cheers, RK

The most significant points of the week?

1. Alfa and Ninja visited the Vametco Mine and the Eskom VRFB Battery Test Site and gave a full report on the Bushveld Perspective website. The visit confirmed many points and gave us the great news that the VRFB at Eskom is operational and is ready for the 60-day test programme to prove its capabilities. They meet new Bushveld Energy Team members and they have all the expertise needed to make it succeed.

2. Indaba Mining Conference - Bushveld Minerals presented at multiple events at the Indaba and the positivity of the delegates and the new Bushveld Presentions were well received. There is a lot of excitement in the air about the future and Fortune and Mikhail are brimming with it!

3. The Political situation has received a major tick up following the Presidents State of Union address. He is focused on creating new employment opportunities for South Africans and new mining opportunities and production facilities are very much in his vision. The particular focus continues to be on locally produced renewable energy projects and that stands Bushveld in an exceptional position.

4. Eskom South Africa's energy supplier is to be broken up into smaller business units to allow an opening of new opportunities and again a focus on renewables will have benefits to Bushveld Energy's future potential.

5. We have learned this week that the floating on the JSE will take place at the end of Q2 or the begining of Q3 and that it remains if at all possible to dual list the company but raise any funds from the listing which means that current shareholders positions will not be diluted. This is very good news for existing holders and new investors between now and then. More details need to be made clear on this in the months ahead.

6. The AIM market for Bushveld Minerals as remained turbulent despite all this good news, but one thing is clear the tide is going to turn and when it does the share price will reward all patient holders. We will see a blue wave of buying and share price appreciation and we will exceed the highs of December very soon.

7. Our accounts are due in March and they will show a significant uptick in profits and these are going to become normal not some fluke. This company is succeeding and it has the will of South Africa behind it.

So it will be one of the stories of great success in 2019 you be sure.

Cheers, RK

Ophidian - I would suggest in 6 months time SoulDoubt will not be back here because if he does come back he will have missed one of the biggest rises and he will look like a complete idiot.

Makes you wonder what a company needs to have and what potential they will deliver on to make people see the light!

I hope he buys some shares in Flybe. That should suit his long term goal. Going to a penny. Please note, I feel hugely sorry for any investor in Flybe!

Cheers, RK

SoulDoubt - Your arguments have no proof or substance to back them up. My investing strategy has proven to be life-changing and made a huge difference to many I have helped and do help!

In life, if you empower people you make a difference in their lives. If you actually follow my points into why this company is in such a good place you could really make a life-changing sum in less than 2 years.

You won't though because you are a bear and you live in a dark hole and you can't see the wood for the trees. It is highly likely that this company will not reside in AIM for much longer and it will flourish based on every critical asset it has at its disposal.

You will continue no doubt to cast doom and gloom on others success and potential success on this and many other shares. But in the end, those that research properly will succeed and this company Bushveld Minerals is one such share. If you don't like it and you don't agree. Why don't you go and find one you do like rather than hanging around at the weekend here because you just like to blow cold water on something you haven't found and can't be bothered to learn about.

Many people do not share your life experience or your negativity and they are much richer for it.

I wish you success. But take you verbal negativity off somewhere else. Many Thanks!

RK

State of the Nation Address by the South African President. He seems to be creating a country which is incredibly investable:

Watch it here: https://www.youtube.com/watch?v=jBnYxe0Ip4E

Might just help you well-researched investment succeed?

Want to learn so more about where we are:

These articles were published on TBP in the last week:-

https://www.thebushveldperspective.com/blog/public-articles-1/post/vametco-mine-visit-407

https://www.thebushveldperspective.com/blog/public-articles-1/post/vametco-processing-plant-visit-408

https://www.thebushveldperspective.com/blog/public-articles-1/post/eskom-battery-site-visit-410

Part 4 of 4
Then we have the Vanadium Redox Flow Battery market. The plant they are building will have capacity up to 1000 MWh. This will need 5000 mtV per year for the project production in 2021/2. Now with the electrolyte, Bushveld will lease the vanadium to the client, so they keep ownership and make an annual income for every kilo of vanadium they have installed in their batteries. This will make a huge income going forward, year in year out. When the batteries reach end of life. The vanadium can be reprocessed and used either for steel or make new electrolyte. This is genius idea and will reward investors with steady dividends.

Now you may have started to click here, but this company has huge potential not only to make money but be part of a new global industry, which has potential grow well beyond what anyone really understands right now! This potentially makes the business extremely undervalued and gives it huge upside. Exactly how large no one can answer, but within 3 to 5 years it will be a significant company and its value will be multiples of what it is today.

Now I hope, I have helped you work through what you need to look for in a company. Is it currently undervalued? BMN – Yes. Does the company have a bankable future? BMN – Yes. Does the company have a technology which the world needs now? BMN – Yes. Has the company worked out ways to continue to bring revenue and profit going forward? BMN – Yes.

So for your 34.5p per share you will be buying into a company with potential to be worth well in excess of £2 billion over the next year and be worth many times that in years ahead. You have now just started your research if you have got to this point!

Learn more by reading Bushveld Minerals website or for investor focused research please read the Bushveld Perspective website. The potential for investors to make money here and be part of something very exciting is too good to miss.

I hope this has been an interesting read!

Cheers, RK

Sorry, it became 4 parts!

Part 3 of 4
But Bushveld Minerals, have seen that the potential to produce more vanadium and also to be part of the new potential energy storage market will help them not only feed a current market, but be part of the very new market they want to supply! So, they are building a Vanadium Electrolyte plant and a Vanadium Redox Flow Battery assembly plant over the next year with potential to supply their very own plant. Now that adds another reason to make this a great investment. Vertically integrated. Building a product from their own product!
But where will the market be for these new batteries? Well as it happens in their own country South Africa and the continent of Africa is one of the largest potentials. Why because the African continent does not have a national grid like Europe and the US. It also has limited resources to build large power stations. But it does have a lot of sunshine and wind through the local climate. So Solar and Wind Energy is a real resource. Add in energy storage and you have a perfect solution to a major development issue in Africa over the years gone by.
Now in South Africa the political will is changing, and they want to encourage new industries using local resources and creating new employment as well as benefiting the economy. It just adds up to the perfect potential.

So what does this mean? In 2019 it looks like Bushveld Minerals will produce around 3400 mtV at a potential average price of let us say $80,000 per tonne and they have a cost price of around $35000 per tonne. So that is a very good profit. But Bushveld have stated over the medium term, they want to increase production to 10,000 mtV. The market demand is there we have seen that. That increase gives huge upside potential. They have the resource to do this.

Part 2 of 3
Many different minerals have been tried to make the electrolyte, but it has been found that vanadium gives all the best properties to achieve the life and repeatability required to build such storage batteries. This is a new industry and it has already been considered that the market could be worth over $50 billion by 2027.

The current steel rebar market has also been influenced by the changes in laws in China, where in the past rebar was hardened using a quenching technique but this only hardens the outside of the steel bar. So, the Chinese have had new laws imposed meaning that they must use vanadium at given addition rates to meet new standards. This was introduced last November. So, if the steel market needs more vanadium and this may be as much as an additional 7,000 tonnes per year increase on top of current demand. So to add this to the demand of 80,000 mtV used today. Then you consider the market potential for Vanadium Redox Flow Batteries for the mass energy storage market. It makes you think that it might just be the perfect time to invest in a vanadium miner.
What has happened to the price of vanadium? Well it has risen significantly over the last year. It peaked in November at around $135 per kilo, then has dropped back todays price which is around $70 per kilo. But this is the quiet time, as it is Chinese new year. Once China awakens and the steel industry picks up, prices will rise again. This time when this happens the prices are likely to peak higher than last year. Why? Because the demand will out strip supply by around 30%.

Now this brings us back to Bushveld Minerals. They have built up a reserve of vanadium in South Africa in the worlds highest grade vanadium belt. Then they have purchased a mine a at a greatly reduced capital value, when the price of vanadium was much lower two years ago before the potential uptake was seen by many. Now, when you build a company up over 5 years it takes time to build up a good set of accounts and actually be making a profit. Bushveld Minerals have timed everything perfectly. So today we have a share price of around 34.5 pence. Way up from the beginning of 2017, when the share price was only 3 pence. It has done well? Yes, it has but currently the accounts from last year don’t reflect this as it takes time for the market to catch up. Also the amount of vanadium being mined is increasing as well as the price of vanadium is increasing. So the potential to make more profit is certain. Going forward. This on its own would be a huge flag to say I am undervalued! But, we have already realised that there is another market just taking off which will double the global need for vanadium. So how much vanadium does Bushveld have potentially in the ground? Well it turns out quite a lot! They have over 440 million tonnes of high grade ore at their figure tips. That is good news I would say!

Part 1 of 3

I often get asked the question about investing, what made me chose a company to invest in? Usually it is because I can see upside potential. I like to find companies myself and then research them properly. I see on these chat boards people write something and then install the tag line “DYOR”. It gives them that superior confidence feeling that they have done their research, but have they really?

What does it mean to do you own research? What you should be doing is deciding firstly if you like the company, what it stands for, what it is trying to achieve? Then you need to see if the management team really has the passion to deliver of the companies goals?

There are many speculative investors who read a few posts on a share chat board and jump in. Not enough research in my book! Everyone wants to find the next Apple at 50 p which will rise to £100. But what does it take to find such a company with potential?

Let’s work with Bushveld Minerals, you are here, and you are reading this!

Firstly, what is there to like? They primarily mine a mineral called vanadium which is used for strengthening steel. The mineral itself is quite abundant on the planet but there are very few active mines in the world for this mineral. In the past most of the vanadium has come as a by-product from the steel making process or from stone coal. These processes are dirty and not good for the planet. Global demand from the construction industry is demanding to build taller and larger structures and they need to have inherent strength. The construction industry uses steel bars in the concrete called rebar. This needs additives within in the steel to give it strength. The most common mineral used for the purpose is vanadium.

Vanadium over the last few years, however has been used in new technologies. The world has a massive problem with global warming. We have a huge issue with a lack of power which is normally produced from coal, gas or nuclear fusion to create the heat and dive turbines to make electricity. But these have nasty side effects, carbon emissions or radiation. The world has discovered renewable energy from wind and solar. But these have limitations. What happens when the wind doesn’t blow or the sun goes in or it gets dark. This power needs storing. Elon Musk another innovator has enabled the mass production of Lithium Ion Batteries and these are dominating the rechargeable power market. Electric vehicles, hand tools, phones, computers etc. But the charge in these batteries although powerful doesn’t last too long and the batteries life is reduced over time. The world needs something to store power in a huge way, but where the amount of charge is not affected over time. So, it has a deep depth of charge and is repeatable over 20 years or more. Now this technology would change the world! So, 20 years ago a flow battery was developed and this technology proved to be capable of such feats. Many different minerals have been tried to make

Lastly from me tonight!

It should be remembered that Bushveld Minerals are building their business from the mine upwards.

The mine has a run rate currently expected to produce around 3400 mtV. Of this there total costs including tax is just under $35 per kilo. This means any price over this number is profit. Currently selling mainly to the US steel market where they demand our highest grade Nitrovan 16 grade Vanadium which strengthens steel by doubling its tensile strength by adding just 600 grams per 1000 kilos.

Now the company has expansion plans to increase its annual production to over 10,000 mtV. Of this increase, much of it will be transferred into the electrolyte plant which in itself will need 5000 mtV when it is up to capacity.

Now the South African president in his State of the Country address has made it very clear he is supporting not only the mining industry in SA and is pledging to support the growth of jobs in SA but he repeatedly stated the country needs to change and put its future in renewable energy which can be supported from local manufacturing companies. He is well aware of Bushveld Minerals and there pledges to invest in 170 million rand in growing their business.

South Africa is going to be a new powerhouse in Africa and foreign investment is going to set this up nicely. Bushveld Minerals will be central to this massive growth story. Education in SA is improving, corruption is being eliminated, they are changing the focus of national security and policing to make the country safe again. The moral has never been more positive since Mr Mandela came to power 25 years ago. Everything is set up beautifully for the future.

Those who miss this opportunity to buy into this story will be very upset in 2 to 3 years time.

You really should research this company and fully understand what it has in place, an in its reserves!

Vanadium and Vanadium Redox Flow Batteries are going to be very big news indeed!

As Mr Forrest Gump once said - "that's all I got to say on that!"