2020 the Year of Bushveld Minerals1 Jan 2020 11:05
We start 2020 with a share price of 20 pence and business valuation of £235.59 million and a PE ratio of 9.14. This is the platform and base point for 2020.
We sit on the largest low-cost reserve of Vanadium on the planet, from Vametco, Brits (next door to Vamatco) and the mamouth mine which is Mokopane.
We have two processing plants Vametco which is running at its current capacity of around 3400 mtV per annum with one kiln and then we have Vanchem running at 960 mtV but easy to grow, with potential from 4 kilns of 4200 mtV after the investment program is completed.
The customers in the steel industry are growing as the population of the planet continues to grow a pace. The Vanadium supplied in the FeV form called Nitrovan and V205 is used to double the strength of the steel and prevents it from corroding. We supply around 4% of the world's supply here.
We have Bushveld Energy who are building a stationary energy storage business based on Vanadium Redox Flow Batteries. The global market in this area has a potential of over $50 billion per annum. But, the business wants to focus initially in South Africa and the African Continent, by supplying Vanadium Electrolyte, initially 200MWh (1000 mtV) and soon upgraded to 1000 MWh (5000 mtV) and supplying VRFB systems into a market with an open potential in a continent with so little resource using partnerships with solar and wind energy generation.
But Bushveld Energy, have already created partnerships through their VIP program which will ensure supply of vanadium electrolyte and promotion around the planet as the Energy Storage market grows.
Geographically Bushveld has the advantage as South Africa as a country suffers from huge unemployment so it can make the most of helping their country by creating employment and infrastructure for the local community through partnership schemes. The key is relative to the rest of the world, labour is at a much lower cost, which means that production through high-quality resource and the efficient plant can produce all its product at the lowest cost meaning its potential to invest and grow quickly is high as well as the companies to produce strong profit revenue.
A driven high-quality management team make this a great investment potential and we are likely to see this company share multiple significant news items which will drive the value of the business upwards very quickly.
The opportunity for shareholders to make strong gains through this year and the next 10 years is huge.
Do your research and watch the growth of this business, it could be one of the companies and investments of the decade!
Where will we be in 1, 2, 5 or even 10 years time, we don't know, but the potential is beyond what any here may imagine! There will be dividend income too in the years ahead!
Happy New Year to you and we wish the Bushveld Minerals management and employees a very successful, safe and strong year ahead!
Cheers, RK
Sign In
Follow the stocks
