RE: Is anyone else interested in...6 Apr 2020 16:59
Evidently, the whole company stratergy is to build a vertically integrated business and go back to 2017 when we didnt even own Vametco. Look at progress and what the business is doing.
Started with the business from Iron Ore mining from Mokopane acquisition. This then quickly changed direction towards vanadium, they acquired Lumur which allowed them to acquire a right to the Brits mine which was next to Vametco, them the took a share in Vametco, and over a very short time took over complete ownership. Having completed thie aquisistion they set about impriving the mine and its efficiency with some strong investments just at the time when the vanadium price started to rocket upwards. This resulted in a huge cash reserve in 2018 which they used to set up the next stage to plan to build the electrolyte plant in East London, but at the same time, they had an opportunity to buy a second brownfield site Vanchem. This has the capacity to take ore from Mokopane when the mine opens. It can also take ore from Vametco. The total capacity of the two sites will reach 8400 mtV by 2023/24.
Now Bushveld Energy is the kingpin to next-level growth. The business is the fundamental foundation is supplying the steel indiusty but the massive upside growth in energy storage has been the known sleeping giant. Bushveld know to aid this market they could use influence to make this opportunity succeed. The way is to build partnerships and even acquisitions in this field, like Enerox and Invinity (RedT/ Avalon merger) to grow the market in the US and Europe as well as the growing customer base.
Add to this the potential huge African market for renewable energy and storage, with electrolyte produced in SA and the completion on the vertical model by assembling VRFB in SA in the years ahead. This means mine to the product under one business umbrella. Does that help explain in as simple terms as possible that this is vertically integrated?
Revenue streams are:
V203, V205, FeV, Nitrovan, Vanadium Chemicals, Vanadium Electrolyte, Vanadium Leasing, VRFB partnerships with part ownership, Energy Project management, Mini-grid partnerships, part ownership of Afritin Mining and 100% Ownership of a power company in Madagascar - Lumur.
The current market cap and share price for this business have no reflection of what it is truly doing and the income it has been generating and will generate.
Later this month we will hear the Q1 2020 news from Bushveld and this is likely to have pushed record production before the current maintence period whilst the plant is on CV shut-down
Evidently, I hope this helps.
Cheers, RK
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