Member Info for RichKen

Bushveld Minerals* (BMN LN) 37.3p, Mkt Cap £416.8m –Investor site visit to Eskom highlights potential for new growth

Bushveld took a group of investors to see the Eskom test site for new battery storage installations yesterday
Eskom are looking to install some 800MWh of new battery capacity in an initial phase to support renewable energy projects across South Africa and have been testing battery facilities for some years.
The new battery facilities are likely to come from a mixture of lithium-ion and vanadium redox depending on Eskom site requirements, needs of the South African power system and the results of current trials with each type of battery suitable for differing applications, among other factors.
Vanadium Redox batteries are seen as better for larger-scale operation with longer duration and deeper energy discharge.
There is some $200,000 worth of vanadium in the UET battery, the size of a 20 ft shipping container, installed jointly with the Industrial Development Corporation, highlighting the cost component and importance of the vanadium in the battery. Fortunately the proposed ability to lease finance the vanadium should enable the low cost effective rental of vanadium for rolling out new battery facilities.
Eskom plan to run various protocols (trials) for 18-24 months and while they may start to order larger scale vanadium batteries for grid use in the meantime they may also discover further ‘grid’ applications for this type of battery which may increase the amount of vanadium storage they choose to order.
If Eskom sees that it works and starts using it, other utilities and large customers will follow suit, opening up the market for energy storage and vanadium.
Conclusion: Bushveld Energy should have a good future depending on the completion of the trials which have had a good start and have run for 10 days so far.

Hello all,
Not my best time has I have some virus and a temperature of 39C! Hence being a little quiet.

However, I am compelled to remind everyone that if invested here the time will come when the incredible resource we have going forward and the huge income coming in every week is setting us up to be one of the largest vanadium mining companies in the world and the successful VRFB work with Eskom will secure our future as a pioneer for green energy in Africa.
The sp drops of the last few days have been great opportunities to buy more or come on board. The vanadium prices we have today are already so much higher than this time last year and they will climb steadily through the year and may well exceed last years highs. Why because the global production is way below the annual demand.
The news from Bushveld Energy with successful commissioning of the VRFB, the construction of the electrolyte plant will take us to the next level. The broker targets make this as clear as clear. I agree with Gambitxjs and Ophidian that the likely rise to new highs over the next few weeks will take us quickly to our broker target price. Anyone not understanding this clearly has no understanding on what is going on here at all.
This company as it stands making the profit it is and the growth potential is grossly undervalued. I will stand by my words that this investment in the future will be over £10 a share and potentially higher. The doom and gloom merchants you have be advised. Any one selling over the last two days may we’ll have had a tax bill to pay. 1st payment is 31st January. Could we have another RNS tomorrow, well we might do, but the next one will be here soon.
Cheers RK

Pdub, pleased to hear the positive news. Great if you don’t need chemotherapy. We wish you every success for a successful operation and a very speedy recovery.
Cheers
RK

Surely a change to SETS would stop all the nonsense. The Sp would have to follow the specific trade patterns without any manipulation.

Clearly, until we do we will nor sure for sure. But if our SP increases and we go into the AIM50 then we have to?

Faramog, I have to say, at the moment I am going to hold predictions on SP and output until we see the other Q4 updates and any news next week from Fortune.

The key to the figures is increased production and an average of $85 per kilo average. Of course is throughput does not come on stream and global demand increases there is one consequence and that is increased prices.

I am still not concerned about increased prices as the lease model will sort this out. I have sent Chika a question as she kindly emailed me this morning. However, gently this was asked, I very much doubt she will be able to answer as this info will need to be released via Fortune, Chika in the press or an RNS. But the point was to raise the thoughts we have around the change in information on the 5000 mtV per year program.

Let's see what happens.

Cheers,
RK

Sanchez, the last communication on JSE listing from Chika:

"As for the JSE listing we are progressing the work and it remains a priority for the Group" but no confirmed in stone update on actual start for this.

Ophidian, it was Chika who said this in her interview and it was $100m. I have also heard John Meyer from SP Angel say the same, that to upgrade to 10,000 they need a "new furnace" was his words but I am sure he meant Kiln as they don't have a furnace.

But is we go back to a whole new plant which is there long term goal at Mokopane the cost is pretty large. However, the latest technology brings the economy of scale and energy efficiency. This could ensure they remain the lowest cost producer. But timing then puts them in line with other potential global suppliers for example in Australia. One of the key points for Bushy is to get the output up before anyone else can get anywhere near. The one continued excellent advantage is we have the income to fund this and the worlds best resource.

Cheers, RK

Just tweeted:

Strong EBITDA generation in 2018 up 349% YoY to US$107.5m, supported by a high vanadium price.

https://bit.ly/2BaMliZ #BushveldMinerals #Vanadium #Mining #SouthAfrica

Updated:
Just a summary to see the picture.

Q4 - 2017 - All together 22nd January - Vametco - 631 mtV

Q1 - Lemur Holdings - 5th April
Q1 - Bushveld Energy - 11th April
Q1 - Bushveld Vametco - 27th April - 731 mtV

Q2 - Lemur Holdings - 4th July
Q2 - Bushveld Energy - 11th July
Q2 - Bushveld Vametco - 22nd August - 629 mtV

Q3 - Lemur Holdings - 17th October
Q3 - Bushveld Energy - 29th November
Q3 - Bushveld Vametco - 9th November - 537 mtV

Q4 - Bushveld Vametco - 30th January - 657 mtV
Q4 - Lemur - Soon
Q4 - Bushveld Energy - soon

Total production for 2018 - 2554 mtV

Strong EBITA up 349% year on year to $107.5 million.

Sp Angel quoted this morning:

China Ferro Vanadium 80% FOB US$70.8/kg vs US$70.8/kg so holding steady.

Just on the SP Angel Table -
2019 at 3400 mtV at $75 per kg (I wonder if this average FeV price is pessimistic past experience is it was?)
2020 at 4370 mtV at $75 per kg
2021 at 5000 mtV at $55 per kg
2022 at 7500 mtV at $45 per kg
2023 at 10,000 mtV at $45 per kg

With respect to the brownfield site if this has the potential to accelerate output the condition of the plant will be critical to the asset value and the potential to bring it online. It would be interesting to know what state it was left in and how secure the site is to allow simple startup.

One interesting point is at the very end of the update today relates to Mokopane. I wonder what if they know something is coming to drop this in again:

"The Mokopane Vanadium Project is a key part of Bushveld's vanadium strategy and the intention remains to secure the mining right and develop the greenfield project into a vanadium mine and processing plant. The Company continues to explore means to supply ore from the project to plants in China and / or elsewhere in the world." So this is still a serious option as an intention is remaining.

Cheers,
RK

Good morning all,

I have had a very busy morning which has taken me away on what I see has been very news filled morning.

It is firstly great to see the final figures for the quarter, although they are lower than we had clearly been hoping to see. However, it is good to be able to finally see the correlation of the foundations created by Fortune and the team to ensure this company was in the full control of Bushveld Minerals and that they have achieved this in the year when the prices lifted to the levels they did. Which to be frank have resulted in exceptional numbers for a mining company in its full year of ownership.
For a company with its current market capital value, it is still astonishing to produce such figures and we should not be disappointed. SP Angel has reiterated this today and not lowered their target price which is a clear indication that we are very much undervalued. It would appear we need to continue more patience till the coming days to see how the year target will pan out but if we look at a conservative target in the range of 3400 mtV this may be prudent as indicated as a primary focus. But we will have to wait and see. The year on year growth has been very good so we should be very happy.

The drill hole results for Brits and Vametco remain very good going forward and the fact that the company is working hard to complete the works. The bringing the workforce into a share participation scheme will be good going forward so they will reap the rewards of their hard work.

There is still plenty to consider here and going forward this is a very good company indeed and I have every confidence we will see the rewards coming forward.

Cheers, RK

?? Emoji fail!

Congratulations on your 1000 posts. Your contributions here are welcomed by all. Here’s to the next 1000. I wonder where we will be for your 2000th post.
Wish you every success.
Cheers ??
RK

Thanks Alfa. Always appreciated.
We might just be at that tipping point.

Pdub,

I just want you to know that both myself and Claire wish you every strength tomorrow. You can be sure you will get the best possible help. Our experience on of every aspect of oncology is incredible. The Mcmillan nurses are worth there weight in gold and they will support you in every way. We have just managed to raise over £3000 for the unit in Northampton this month and any who go through that special ward will have some additional comforts.

We hope you experience the best support in your local hospital.

You can be sure that all here will continue to follow in every foundation you have laid here in the weeks and months ahead and you have all our support behind you. Keep strong and believe in your inner strength and you will be good! Positivity rules!

Now back to BMN - are we £1.50 yet! Our story is not half told, but it will be moving to the next chapter soon.

Good night all.

Cheers,
RK

Hey Pdub,

Hope you are doing ok buddy. I am sure everyone on the board has you in mind at the moment. I know it is off subject but keep us updated on how you are getting on. Thoughts are prayers are with you.

Cheers,
RK

Headancer our GOLD is GREY and it is a very nice grey. One of the most in vogue colours right now.

Also worth around $225 million per year in profits to BMN once the 5000 mtV is reached!

Copper would be a nice find too, that would complete the circuit, pardon the electrical pun!

We are all charged up and ready to be the real Store-Ve... Come in number 23...

I'll get my coat....

Gud moaning - I shall say this only fonce...

Originated from our good friend Mr. Nickderby!
- Experienced mining entrepreneurs in our BOD.
- No outstanding warrants or debt.
- Dividend policy to be announced in the next few weeks.
- Bushveld own 74% of Vametco.
- Vametco 2018 profits are looking huge even at the current FeV prices and production levels.
- Our share of Vametco profits after tax is around £2m per week at current max production and FeV prices of $100/kg.
- The current world vanadium supply deficit will remain for at least the next 3 to4 years.
- The new Chinese rebar standards, which started in November, will increase vanadium demand by a further 30%.
- The Chinese are banning imports of vanadium s l a g.
- The environmental crackdown in China is fuelling the vanadium price rally further
- Global vanadium prices are looking excellent for 2019 and will no doubt pass the multi-year highs reached in November 18.
- China, one of the largest vanadium producers in the world, is expected to become a net importer of ferro-vanadium in the near future accelerating demand in steel and VRFB uses
- Vametco annual production capacity has increased to 3,750 mtV and we are implementing production levels to 5,000 mtV pa during 2019.
- All current production increases will be paid for through operating cash flows.
- Guidance for 2018 production was 2,600-2,650 tonnes of vanadium.
- The potential for 2019 will be circa 4000 mtV
- An additional brownfield vanadium production facilities to be secured with capacity up to 10,000 tonnes to be announced soon
- Our Mokopane mining licence is due any time - World largest vanadium resource
- Mokopane early revenue generation is coming based on off-take agreements
- With current V2O5 price this makes our Mokopane vanadium project potential hugely profitable.
- Brits vanadium - very high grades confirmed, thereby reducing Vametco production costs even further.
- Further drilling is taking place at Vametco.
- Bushveld Energy is opening up the exciting VRFB sector.
- BE has agreements with UET and IDC.
- Commissioning of the demonstration VRFB with Eskom, the SA national power utility, is taking place. Potentially a huge contract is coming our way for supply!
- Electrolyte production plant is moving forward with production in 2019.
- Electrolyte leasing partner news to come.
- Imaloto coal has an MOU with Sinohydro.
- Imaloto coal BFS will be published shortly.
- Lemur has signed a binding 30-year power purchasing agreement with the Madagascar state-owned utility JIRAMA
- Potential Imaloto coal sale or spin-off - funding multiple projects ($200m)
- Our 10% Investment in Afritin Mining - first production starting.
- Other resources we have iron ore, titanium & phosphate.
- JSE listing coming soon
South Africa politics have improved significantly.
Ramaphosa’s South Africa is becoming investor friendly and foreign investment is encouraged.
Bushveld Minerals "The investment" - To infinity and beyond!