CC is being pedantic! I am sure Pdub meant to type 0.900p which was the price at the close of business last Friday, not 9p. Easy typo to make!
The rest of Pdub's post stands and is clearly endorsed by the community here. Pdub is a much-respected contributor to this board. If there was an award for a Lifetime outstanding contributor to the Bushveld community he would get such an award. It is also why he is the most respected contributor on LSE!
Thanks, Pdub. I think both of us have over the years given balance in our thoughts on the future in terms of the risks multiple times. There is no such investment that gives a one-way upward trend. Not gold or even diamonds, prices vary. But a successful business will grow if it has a management with motivation, astute business acremen, good products, a material in demand and can see a way forward in a market which is opening up and can educate people in that market place with reasoned and justifiable arguments. Bushveld Minerals has all these in place. We may not progress in terms of 'achieved value' as quickly as we may want, but we are doing so and will continue to do so and it is important to share how this can be bourne out. So people can understand what this company is doing and the market is performing in. That is after all the purpose of a share chat forum for investors. I think this board does it better than any other I have ever read.
Onwards and upwards! Have a great day all!
When I started this thread earlier, it was clearly to highlight that as a business Bushveld Minerals are doing exceptionally well and there profit and lack of debt, makes this right now one of the most investable companies around, not only just established but with a clear plan to maket growth which is very strong compared to most businesses which can see steady growth year on year. Bushveld have made huge progress since March 2017, in terms of acquisitions and mine optimisation as well as a clear plan to open open up their market potential as well as make clear a way to grow the vertical integration which has the potential to multiply the growth and income multiple times of the next 3 to 5 years, which likely good dividends as well. I have to say I really cannot see this company staying listed on AIM for too much longer. I have no idea if they will move, but they need to change the mechanism if and when they list on JSE and that it would not surprise me would be the time to move onto the FTSE. With a strong marketing campaign amongst the investment world backed up by solid growth the story will get out and then many new large investors are likely to come on board. We are not an SXX with massive debt, we are a profitable business with a growing market and this will wake people up.
There is no doubt that the last 8 months has been disappointing for many investors and I am sure no one could have foreseen the drop in SP, but with the solid foundation and our income we should recover at some point in the not too distant future very quickly, and any losses investors are sitting one will not only be crystallised, but seen as a thing in the past and we will be back to the massively happy board we had last October and November when people were coming in here new on a daily basis. We should remember that nothing has changed in terms of the business, in fact, it has improved dramatically! So we are solid investment.
Hopefully a new chancellor and a new team focused on climate change and UK energy, will see the need to change the VAT on renewable energy projects and increase tax on coal, and then increase tax on replacement gas and oil boilers to incentivise and bring the focus on replacing home heating to either using renewable electricity suppliers, air sourced heat pumps and new builds encourage the use of ground source heating systems mixed with solar roofs and home energy storage. There is a lot to do here and if people really want change to reduce carbon emissions then the incentives have to be strong backed up with 5 or 10 years finance packages to make it affordable for every home.
Well, this Alfa will make a very strong case in the US for VRFB systems as the only real alternative and with UET and Avalon in full swing, this will hopefully build US opinion that VRFB systems should be the ideal option to complement renewables and grid balancing.
With this information on Lithium-Ion batteries, it is easy to see why installation inside buildings is not to be advised!
Today’s RNS’s change nothing, the company is making incredible profit which is increasing as the FeV price continues to increase. Currently $40 per kilo, our costs are are around $17 per kilo.
Reasons to invest, we are massively under valued, production is expanding and we have new revenue streams coming in 2020 which will more than double our profits.
In days of global uncertainty this is a solid investment.
YTSS - There is no doubt in my mind that the next 10 years will see a huge change from ICE (Internal Combustion Engine) to Electric Vehicles and that range and battery life will improve. The move away from Petrol and Diesel will massively impact the oil and gas industry. We will also see a move towards higher electricity use in our homes, due to vehicle charging as well as other products. Then when we look at air source heat pumps which will mean less need for gas and oil will all need more electricity. If we are to move to renewables including solar, wind and even wave power generators as well as other potential forms we will reduce emissions, but only with a balanced distribution grid. This means energy storage at strategic locations around the grind to reduce transmission distance, to allow power distribution at low energy usage times of the day so we have the power we need locally to the point of use. This will mean lots of energy storage across every country of the world to build balance grids. In countries where there is no power distribution, then multiple mini-grids to give communities power where there is currently hardly anything. This is why stationary energy storage is critical to the future of the planet and reducing global carbon emissions.
We talk about VRFB as this is our focus using vanadium, but the reason is not only because the technology is our client, but because it is the best technology for stationary storage. Up to 30-year life span, (the limit is not the electrolyte but the power stack, which is likely to be easy to replace, so the VRFB can be easily updated and renewed, without the need for new tanks and electrolyte. This means their life is potentially huge. Also compared to the Lithium-Ion systems which will have to be replaced every 10 years and the depth of charge will reduce over time. This will make them exceptionally expensive, and they could kill the market. So for the energy distribution network, they need to choose the right technology. VRFB have no risk of fire or thermal runaway so they need no cooling either, which is a massive factor. The more you gain an understanding in this technology the easier is to see why this investment in Bushveld Minerals makes so much sense. Vanadium will play a huge part in the steel strengthening market, the developing world will use more steel no less, and a massive part in stationary energy storage.
So remember that Bushveld Minerals has the largest high-quality vanadium reserve on the planet and huge potential for massive upscaling the business when it is required. Vanchem with 4 Kilns (4 times the potential of the current Vametco plant) is key to low-cost expansion. This businesses growth potential here is off the scale if you start to look at this carefully. they have no debt and making already over $1 million per week and this is increasing.
I hope this helps all looking in this evening.
Thanks for the transcription Pdub. Much appreciated as always.
I think the last point on the JSE listing recently has been played down as BMN have looked at the timing, but I still believe this will be a catalyst as SA investors are not currently able to invest in one of there greatest success stories of the moment and they will want to be able invest in their future. The business as outline by Fortune is going through multiple changes and growth over the months ahead. The JSE listing also has implications on the UK market due to the transaction infrastructure between the two markets, so this may mean how the company is listed may have to change. My personal hope is that might be the time to move off AIM. This may not of course happen, but if it did I think a lot more investors would be willing to invest in this incredible company. The options are open, but with Vanchem completing in the next 3 months and Bushveld Energy heading to the next level. The timing after the completion of these projects and time there after to unlock the upside potential will be very investable.
Looking forward to see what Fortune does next.
Ferro Vanadium 80% FOB (China) US$40.0/kg vs US$40.0/kg
UK risks losing out to Europe in home battery boom
“Unfavourable” policy frameworks and a VAT increase for solar-battery packs this October risks leaving the UK behind Europe in booming home battery capacity (Guardian).
Wood Mackenzie predict that Europe’s home battery capacity could increase fivefold in five years, forecasting annual home battery installations in Europe in 2024 totalling more than 500MW.
The UK government has vowed to improve UK clean energy storage, including a £246m pledge to develop battery technology.
However VAT increases on solar batteries installed from October risks limiting access to low-cost renewable energy.
Link - https://www.uploadlibrary.com/SPAngel_JohnMeyer/SP_Angel_-_Morning_View_-_Wednesday_07.08.19.pdf
Well, I have come in and seen and read some great posts today. Yet again some excellent posts from Ophidian and BBN, bringing key pointers to everyone's attention and putting fair estimates and positive but calculated contributions about the short term future which are all entirely plausible! Some great contributions and questions too!
Thanks to all. Also good to see the 'Oracle' come back to form and have a blue day on what appears to be a low volume which is a good sign again. The global outlook for energy storage seems to bring new stories every day and the small but positive steps away from Cobalt / Lithium-Ion systems due to the risks which will only be good for VRFB. I can't wait for the news that our Vanadium Electrolyte plant is ready for production and the income stream on that product turns our income to a truly beautiful liquid which will raise our profits to the next level (even though our current profit from income is already incredible). Today has seen more UK investors punished through focusing on companies laden with debt and mines which will take years to pay back (so glad I made a decision not to buy SXX, but feel for those who have). Again it will be seen that companies making a profit and not a risk through the UK leaving the EU will be where sensible money is focused over the coming months. This is one company that fits the bill, it may be based in SA and can easily be seen as high risk, but and this is a big BUT, it has the right product, the right resource and will be supplying a product that the energy storage world will need in abundance. That makes this not only undervalued but it makes it stand out from the crowd as an investment. This is no playground investment it is a serious company with strong motivation and a BOD which ambition to help contribute to the climate crisis, help create jobs in South Africa and a jewel in SA business world. Quietly going about do so without too much attention.
I am looking forward to the growth over the next 18 months and seeing many more blue days to come. I would love to see us being able to focus on this, with one player less making trouble, but I guess that might be too much to ask for. The strength of this board is in the research and the tenacity to see their investment succeed and enjoy the ride of their lives!
Have a great evening all. Looking forward to meeting up with another yet another Bushy investor tomorrow. Exciting times are coming.
Ferro Vanadium 80% FOB (China) US$40.0/kg vs US$40.0/kg
China dominating lithium-ion battery production
China is ‘dominating’ global lithium-ion battery production, according to a recent article in Forbes magazine.
Exponential growth in lithium-ion battery production and sales is enabling significant cost-reductions, supporting expansion across a number of markets including consumer electronics, electric vehicles and heavy industry.
That growth is expected to continue, driven by growth in electric vehicle manufacturing where sales have risen by >10 x over the past five years.
China manufactures ~73% of lithium cell manufacturing capacity vs 12% in the US (BloombergNEF).
China’s dominant market share is boosted by cheaper labour costs and greater lithium carbonate and hydroxide processing capacity.
Chinese lithium production was 8,000t in 2018 driven by imports of lithium in spodumene concentrate which was ~10x US production.
China is looking to continue to dominate the Lithium-ion battery manufacturing as it has done with solar panels where it has driven manufacturing prices down to unexpectedly low levels largely driven by local subsidies which overseas producers have little chance to compete with.
Link - https://www.uploadlibrary.com/SPAngel_JohnMeyer/SP_Angel_-_Morning_View_-_Tuesday_06.08.19.pdf
Knutsfordnotary - I think this is where Vanitec comes in. They are strong on sharing on Twitter, Facebook, and LinkedIn all the information on Vanadium and Rebar. Key areas will be bridges and high rise buildings especially in areas vulnerable to earthquakes and typhoons. This is where high-grade rebar is essential.
It is interesting we have all focused on China, of course, being the largest county in the world by population and the fastest growing economy, but the largest country in the world will soon be India and its population will need more buildings, infrastructure and power generation, so the combination of China and India as the two largest superpowers in the years ahead will have a large impact on the growth of the steel market as well as energy storage. Renewable energy is already making the news in India and the use of solar, wind and energy storage will be massive, so I would fully expect to see the worlds demand for vanadium increase further, and we should be watching the India situation carefully.
So watch out for Bushveld Energy supplying the Indian market!
Uksteveg - This article by Alfa will help answer your question: https://www.thebushveldperspective.com/blog/public-articles-1/post/vametco-processing-plant-visit-408
You will be able to see the packaged article from the Vametco plant which Vametco call Nitrovan.
The combination of these amazing deliveries and rising income to the business, will not only accelerate our expansion plans, due to increased income but will increase the chance of a dividend in 2020 for the complete 2019 year-end. Yet another reason for investors here to be encouraged and to truly believe that their investment is not only strong but has the potential to grow quickly.
Thanks Pal! Pdub and PB940 are spot on with their comments and appreciation!
In the end the growth of Bushveld Minerals will be driven by the global requirements for Vanadium in construction and Energy Storage systems. If SA doesn’t make best use of the resources you can be sure the rest of the world will. The market for energy storage is off the scale and global demand is going to be the same. Low cost production at Bushveld Minerals due to easy access to the ore, brownfield infrastructure will ensure faster profits and these points underline the inevitable growth.
That is it in a nutshell.