Posted this a year ago!1 Dec 2019 16:39
List of important stuff from NickDerby
Incredible figures!
The electrolyte is a difficult one, so I'm leaving that profitability until we get some guidance from the company regarding costs/revenues.
However, FeV production of 10,000 tonnes would generate around £369m post tax profits, probably more as the costs should reduce due to the increased production. A PE of 15 gives us £4.95 as you say.
Mokopane would be producing V2O5 which has a lower selling price so would generate less profits.
10,000 tonnes would generate around £190m post tax (PE 15 is worth £2.55).
25,000 tonnes would generate around £495m post tax (PE 15 is worth £6.64).
That is assuming vanadium prices remain unchanged and there is no dilution.
However, I think even with the current huge cash generation there would still have to be some dilution to bring on 25,000 tonnes pa of production at Mokopane!
Incredible figures though and they don't even include any contribution from Bushveld Energy.
I love the dividend forecast! :)
For anyone who is willing to be patient and stay the distance here, there is the opportunity to obtain riches beyond their wildest dreams.
Vanadium production from 3,750 tonnes, to 5,000 tonnes, to 10,000 tonnes pa and beyond.
Vametco, Brits, Mokopane vanadium. Further brownfield production facilities to come.
FeV prices increasing rapidly, already through $125 per kg, next target $150 per kg and then beyond.
At least another 3-4 years with very limited supply and increasing demand.
Maybe even $200 per kg is possible?
Who knows how far vanadium can go, we are in new territory and a still have a large structural deficit.
VRFBs - initially through Eskom in South Africa , then securing large scale energy storage projects throughout Africa and the rest of the world. This is a huge opportunity and BMN is in the best place to take advantage of it.
As we are ‘most significant, lowest cost, vertically integrated vanadium company in the world’, we can subsidise our VRFBs without compromising the profitability of the group as a whole. This was confirmed by Fortune in one of his recent interviews.
This gives us a massive advantage over our competitors.
Electrolyte production - sale/leasing.
Lemur powering Madagascar.
Dividends being discussed in H2 and then increasing sharply every year due to the incredible growth expected over the next few years.
Interesting about what has and hasn't been achieved!
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