There is no reason to think that today's update is anything other very positive. They have answered every question in one RNS. I like that we have all the points covered. With V prices rising our profits are very healthy and our operational costs are down.
The sleeper in the RNS is the Mokopane part, this is looking stronger and stronger every day. 2020 is looking very good indeed.
Busy day, so that's it from me till later. Have a great day and I am sure we will have another blue one!
There is no doubt that the rises in V price and confidence that demand is not only there for the steel market, but for the VRFB market (there are 29 VRFB manufactures after all not just one and not just one electrolyte supplier. Projects are moving and demand is there. So all primary vanadium miners and processors should see SP increases. The increased thought process that Largo may be able to go it alone in future without having to supply one large mining operator and trader, Glencore may increase peoples desire to invest as well as the plants further growth plans.
As for our situation we are sitting very well placed. We know Vametco is producing and shipping and is making a solid profit in return. We know that the company has news coming on Vanchem and you can be sure if Fortune had thought for one moment he could not complete the deal he would not have made the approach. So we can be sure that it is a process, not a question of will it happen? It will. The market has not taken this into consideration, but we know we have an instant circa 900 mtV upside. With easy options to increase with multiple investments in the plant, to be honest, they would be very sensible to use some kind of financial tool to assist with the upgrades required and hold an amount of cash for specific needs. Borrowing right now is a low cost if required and it would be low risk. They could pull a further rabbit out of the hat and sell Lemur to finance the project. The last update on Lemur was back on 10th April 2019, given the current climate, this could be a very positive outcome unless they shifted the project to renewables and install multiple large VRFB's? (I am sounding off this point, not likely).
For me a strong RNS on Bushveld Energy could be a real injection of confidence for all investors, with Vanchem in the bag and even Mokopane news as a combination, I think everyone in the Vanadium world would celebrate this news. It clearly is a big family, I see this with interviews and Vanadium marketing through Vanitec. The CEO's all get on wanting each other's projects to succeed. There are many mutual investors too, who like many of us see the potential across the board. Largo, Bushveld Minerals and Australian Vanadium and other small players who are wanting to come in. They can all see the huge potential of #VRFB.
Lots of news and even more potential. The coming 12 months could not be more exciting, and the best thing is the following 12 months after that could be even more exciting! Most AIM investments can look good based on one result. Bushveld Minerals looks to have multiple and I am running out of 'characters" to write about them but we have more than enough to keep every investor happy.
Cheers all! ..RK
Thank's Pdub, I truly hope you are feeling a little stronger after all your chemo. I have seen first hand the ongoing side effects and how it saps your energy. You are a legend, sir! The way you continue to support this board in the way you do. It is great to have something to put your energy into I know as a distraction and the sense of purpose is a great help. But well done and thanks for all your support and research!
This is another good picture and information on the Dalian VRFB. This one is 800MWh. There are two more projects planned for 2020 each of 1000MWh (one for a renewables project and one for a Nuclear project) and other projects adding a further 1200MWh. Total 3.3GWh excluding Dalian!
Of course it worth repeating but in SA, they are looking at total projects of 1440MWh in 2020/21. Again substantial projects. If you then consider the market in India, the US, UAE, Australia, and even the potential in Europe the numbers are just enormous.
It makes you understand why the Mokopane project is so significant to the worlds vanadium supply as part of a global requirement for VRFB, whilst Vametco (and Brits) focuses on the steel market. That is the reality.
That is why I have said that Bushveld Energy are building a Giga Factory! 1000MWh is 1 GWh = 5500 mtV! It's in the RNS and it is clear on both the Bushveld Minerals and Bushveld Energy websites. This is no pipe dream it is happening.
This is why so many LTH are exactly that, long term holders - the future is immense. As Greta would say is my microphone switched on? Can you hear me? Oh and the world is screaming Climate Crisis and governments need to find solutions? If you want to reduce carbon emissions you need carbon-free power generation and you need safe energy storage to store and complete grid balancing. I think you get it :-))
Sorry, but it is the solution, and investors here might just have found a rather large golden egg, and it's about to hatch.
Exciting times folks!
Just to put things into context, if anyone is just looking in and seeing our rise today and from Friday, we have a target price of 90p. We are making substantial profits, we have no debt and we are supplying into a market which is very progressive and is about to explode due to the climate crisis. Energy storage is going to be a massive market and VRFB technology is going to be huge in the stationary storage market, there is no doubt about that because all the lithium is needed for the EV and portable storage market.
There are multiple news items imminent which could increase the rate of the SP dramatically.
I have to say in English that could be a very interesting story. Clearly painting the picture of the potential of VRFB for renewables and grid storage and the essential key advantages of V batteries over traditional know lead acid and lithium. The advancement of this technology in China is huge Dalian is back in construction and there are a further number of large projects underway (we know of 3.3GWh of projects over the next year).
There is clearly going to be some increased demand for V203 / V205.
Sounds very likely Ninjamagic! I think we are due to get some news either in the form of updates or with respect to Bushveld Energy. I think we will also see further increases in the price of FeV in China. Although I hope we don't see to larger jump! Need to stay below $45 per kilo in my opinion.
Q2 for Bushveld Vametco should be very encouraging in my view and news from East London would be perfect. The golden nugget would be a mining license for Mokopane! I think there are going to be a lot of people wanting our vanadium and our electrolyte so this would be very useful indeed!
I would like to see 30p by the end of this week, this would build confidence again and be a good stepping stone to a strong uplift in the SP which is needed. Looking forward to a blue week!
I’m trying to understand the 150,000 tones of V205. That would be a massive plant and need a huge source! It could be of course the input of ore which would give 2400 mtV. Unless they are talking about taking ore from Mokopane? That would be some off take agreement, if any of it ever happens.
Good evening Berserker,
A nice name so guess you are Viking Warrior going into battle with AIM and trying to win! I hope you have nice pictures on your belt too ;-)
With respect to your question, BMN are becoming a disrupter in the vanadium world. Given that 3 years ago they had opportunities dependant on mining licenses and know they have managed to purchase Vametco (74% ownership with BEE holding as is legal the other 26%). Mining 2650 mtV made them a very tidy profit last year on the back of significantly rising vanadium prices.
With the profits, they are investing in growing the business through the acquisition of Vanchem which will significantly de-risk the business (having 3 kilns) and the potential to increase production to 4200 mtV at Vanchem. BMN will also further upgrade Vametco to around 4200 mtV. Giving a significant upside. They have the looming mining license which may come at any time which opens up Mokopane which will be capable of a minimum of 5000 mtV per annum.
BMN has already pledged $10 million for the building of the Vanadium Electrolyte plant - the income from this will easily outperform the mining business and this could be by a factor of 10.
With respect to VRFB, there is no doubt that they are starting to take up the largest of the energy storage projects and this information was made clear at the recent IFBC in Lyon. Our own plant will need around 5500 mtV per annum for 1000MWh. There are projects being spoken about all over the world of large size for grid applications. The technology is moving fast.
With respect to the leasing plan, this will create a more stable price for the electrolyte to VRFB. Bushveld Minerals will be paid the market price and the electrolyte will be paid for by the financing company. This how it works, the details we do not know as this has not been made public. But the residual values should be strong as the V content in the electrolyte is large and the V can be reused. But as we now know the VRFB can last 30 years with the new membrane technology this by far surpasses the life of a Lithium-Ion system which is finished after 10 years. So right now the technology looks world-changing.
One last point is that in Fortune Mojopelo and Mikhail Nikomarov you will not find to more motivated people who not only want their business to succeed, the motivation is to help the planet and the people and leave the world a better place than they came into it. Now if VRFB plays a major part in renewables energy storage and reduces the climate crisis they will have made a significant impression. With no risk of fire and the recyclability, this is much safer and kinder to the environment and its people than the alternatives.
I firmly believe they will succeed and there timing could not be more appropriate. I am not sure I have answered your question but I hope I have helped give you more insight. The investment potential is there as I have said before. It is your choice and your decision.
Well Ladies and Gents, I am all for welcoming new investors and posters to this board. I think genuine questions are welcome. There is a plethora of information held within the minds and research papers of many long term holders, who post on this board. There is also a wealth of information available to read and watch on the 'Bushveld Minerals website', the 'Bushveld Energy website' and of course 'The Bushveld Perspective website'.
The current situation is actually very interesting for new investors and investors wondering about buying back in. Why?
The company has made incredible progress this year adding many pieces to underline and set up this business for very strong growth into a developing market (VRFB), with an underlined strength of supply and profit in the existing steel market with its Nitrovan Vanadium product. Read the RNS updates for 2019.
The reason is this is a turning point, is that we are all well aware after falls in vanadium pricing in the first 6 months of 2019, that the pressure is coming back, driven from the Chinese market, increasing vanadium in steel rebar to meet standards as supplies become low (annual need around 70,000 mtV), increase in new VRFB projects in China requiring an additional 18,150 mtV for the 3.3 GWh of vanadium in 2020 alone.
Add these points, to our own expansion of Bushveld Minerals output with the acquisition of Vanchem, upgrades at Vamecto, the coming license for mining at Mokopane, the new Vanadium Electrolyte plant in East London (SA), the multiple interests the company have received to supply electrolyte into VRFB's as well as the opportunities in Africa for VRFB means that the company can be sure as it expands its capacities it can do so with the assurance it can sell all it produces. Climate change and the climate crisis is hitting the media globally and energy suppliers know they need to act and VRFB is one energy storage solution which will become a bigger and bigger part of the solution. The vertical integration will maximize profits beyond being just a vanadium miner and processor, we will have an even more valuable saleable product too, with market expertise and even VRFB assembly for the local market.
Put all these points together and you can see that our current SP is incredibly low, our broker target is 90p, and the upside above this still has strong potential. Add to this potential dividends from profits and the long term picture looks good indeed. This share is a keeper in my portfolio, there are risks but the rewards are likely to outweigh those.
So if you are new or a watcher, come on the board ask a question if you need to, and if you find a good piece of information which can add to the information post it! May discussions come from new news. But if you come on with a list of unexplained negatives in your first posts be prepared to be challenged!
Have a great weekend!
Canute, my guys he is referring to the new JLR upgrade at Castle Bromwich to produce the new Jaguar XJ all electric. Using batteries! Not quite the same thing but near enough for a politician! He probably has never heard of stationary storage.
Ophidian you post last night was spot in my friend thanks for that key contribution. Excellent summary.
Alfa, thanks for that battery update. If there are readers of this board those two posts give massive understanding of our position and the global battery market. Stationary storage is going to be leaning heavily on the VRFB technology and mobile storage is going to be ingrained into Lithium Ion. The energy storage market will see this and the trends and it will become much clearer in the next two to three years. The automotive, portable tools, mobile electronic devices are and are going to be huge for Lithium and stationary will need the Flow Batteries and Vanadium is the magic mineral due to the long lifetimes and recyclable advantage.
The UK of course can still be a huge client of VRFB and there is nothing to stop someone entering this market and building VRFB here and buying key components for our domestic market.
Exciting times. Let’s home renewable energy gets the right tax advantages compared to oil and gas. I also hope business and industry gets the tax advantages it needs to prosper as we need string manufacturing here in the UK to grow the economy and maintain low unemployment. That is good for all. Let’s hope the youth start to realise that engineering is exciting and that is technology. Not siting in front of a PC!
Anyway I am positive Bushveld are siting in a phenomenal situation right now!
Cheers all! RK.
Hi Furnaceb, It would be interesting as you are investor here for you to post your questions. There is no way to help if you don't ask. Many of the LTH here are postitive as they understand the workings of the company and industry and the world situation and the enviromental situation needs solutions. Just beacuse the world is currently focused on Lithium, Cobalt and Graphene. But you can be sure Vanadium is about to become much more well known. Did you know for example that in China they are installing a 1GWh VRFB on a nuclear installation? That project will use 5000 to 5500 mtV? That is not the only 1GWh install about to happen. Let alone the huge number of projects being worked around the planet involving Vanadium.
So ask away, there is a huge amount of knowledge here. The only thing we cant tell you is when Fortune will announce the next details we only have ideas from the milestones set out in company presentations and previous RNS's.
Fire away. But please let's be fair and kind. There is a lot of time, effort and in many cases cost goes into research to help all.
Absolutely spot on BobbyAxe!
This company has it all. If there was a company that seems to have everything lined up perfectly this is it, yet even though many piled in on the rise people have forgotten why this company is so incredible. Even more important the price of vanadium last year rising was massively helpful and the vanadium price falling in 2019 is massively helpful now just as the market is waking up to VRFB and the global climate change lobby is driving every country to take renewables seriously. VRFB is the perfect solution and we have everything ready to proceed at full speed ahead.
If you printed licence to print money for investors as the companies mission statement people would still be doubtful. But potentially that is the situation.
I am extremely comfortable about my investment and the future. Any recommendations me buying in know will be as happy in two years time as many of those who bought in in late 2016 early 2017. The upside potential is unbelievable.
Anyway I might sound a bit rampy! But having lived and breathed this share and the technology for two years and learned the business plan and the technology I feel qualified to state these points. Most AIM investors are flitters, jumping from one to another hoping the herd is right. Here is one in a million investment.
Do your own research. Time for bed!