Member Info for RichKen

With respect to those wondering what will happen, when the SP gets much higher and thinking about selling at that point which we think some will and some will see the continued growth potential and actually add more.
It is worth considering when the SP reaches the £1 mark, that the company will have multiple revenue streams and likely be paying a dividend. At this point the company will appeal to a different kind of investor who I am sure if they see strong fundamentals, delivering strong revenue and profit will be more than happy to replace the early long term investors and many of the small PI's who have taken the early risks and will have made a very nice return. But the really smart money PI's will not sell much as they will continue to see the growth and are likely to see dividends per annum in the same range as there current holding value. This is of course, if the vanadium demand grows with the expected massive global stationary storage demand and that VRFB takes a fair percentage of this market. They could very easily become the domineer in that market over the next 5 years. We don't know, but they certainly have more positives right now compared to any other technology I have seen! So it looks likely that they will succeed!
There are always somewhere, each day, companies for which the share price jumps by huge percentages and if we all bought and sold on the right day we would be in the same situation as 'Biff' in Back to the Future - luckily we are not!
Still over the next few months, if Bushveld Minerals are able to secure a part of the BESS supply chain it will be very good for Bushveld Minerals and huge news for South Africa. We have to all hope that the positioning and timing all come together in the right way. From an ethical point, from an environmental point, from an economic point, and from an employment point it would make very good sense indeed.
Let's wait and see...
Cheers RK

Now is the time for the Vanadium Redox Flow Battery to really maximise its place in the energy storage market. There really is a change in momentum right now in the world. I think the next 5 years we will see a huge migration to eV's as they become more affordable and the large manufacturers move development fully away from ICE development and full time to eV's. This means that the energy storage market needs to find an alternative to Lithium-Ion, for many reasons. Not least of all because of the fire risk, but the key is when you buy a high capital asset like a large capacity energy storage system it needs to last longer than 10 years. The key advantage of VRFB is the assets will last a minimum of 20 and new technology will be 30 years. This means that you can not only finance the asset over longer, but you can depreciate the asset over longer which for large energy companies is a massive advantage. The even stronger advantage is the electrolyte can be transferred into a new system in 30 years time and reused in a new system as the technology advances. Of course, the leasing of the vanadium electrolyte can be removed from the capital expenditure (at purchase) and be spread through operation cost.
No other system can say that the depth of charge does not reduce over life, even going from 100% to 0.
The key to success though is for the whole VRFB industry to make a huge noise with every energy provider on the planet and every power distribution company. Right now the knowledge is low, but it will increase. We need them all to demonstrate and shout about the technology. When we look at the work that Mikhail is doing in Africa, and around the world with Vanitec is a huge step forward and there need to be many more champions like him demonstrating the advantages. But this will take time and in that time the global Vanadium mining and processing businesses will be ready to supply to this huge market. In the meantime, Bushveld Minerals are doing everything they can to be ready. When this market takes off the days of this low SP will be long gone! Make sure you are still invested here because the clock is ticking and we will succeed!
Cheers, RK

Jonny, You are quite right the work required to get the VRFB story out there is huge. All we can do is share on Facebook - Follow "Vanitec", LinkedIn - the same plus, follow every VRFB manufacturer, Twitter use the "#VRFB" and comment on every wind, solar and energy post you feel it will be appropriate and add the @bushveldMin_Ltd
Then bore your friends and young 'Greta enthusiasts' they love the story! The more the story is shared the more people will hear about it. Eventually, it will work its way up to those key decision-makers!

Setcentric, we here have discussed the potential purchase of Ironveld and to be honest at this time it does not seem to be required by Bushveld Minerals. They need to complete on Vanchem and the money they have allocated would be best spent on the upgrades required and once the Mokopane Licence is issued developing the worlds largest high-grade vanadium asset in the world.
Bearing in mind that Bushveld Minerals have around over 3.5 million tonnes of Vanadium in the ground at a current value of at $140 Billion and a life capacity at 10,000 tonnes per annum of 350 years. So one could say Ironveld does not really constitute great value to Bushveld Minerals?
What do you think?

My priorities are:
1. Complete Vanchem aquisition
2. Build East London Electrolyte Plant
3. Start improvements at Vanchem
4. Improve Plant Effciencies at Vanchem employ additional people to run the plant
5. Start mining at Mokopane with ore off-take (already in place)
6. Use income to develop the mine and start ore deliveries to Vanchem which will supply high purity Vanadium to Bushveld Energy
7. Develop the Bushveld Energy Business
8. Continue upgrades as required at Vametco
9. Build and expand on the current portfolio and have the largest vertically integrated Vanadium Business on the planet with a company value in excess of £3 Billion with annual dividends of around 2 to 3% relating to the share price subject to sufficient profits.

Hope that helps!
Cheers RK

Continuation and for interest only:

Ironveld (IRON LN) 0.68p, Mkt Cap £4.4m – NED director resignation

Ironveld PLC report the resignation of Rupert Fraser, an NED of the company with immediate effect.
The company announced on 12 August it had entered into confidentiality agreements with several parties interested in potentially making an offer to purchase all or part of the Company's assets.
This was following a strategic review of the company’s mining assets announced on 2nd July at which time Giles Clarke, Chairman of Ironveld, said: "We believe that we have one of the premier in situ HPI, vanadium and titanium deposits in the world and we believe that the potential of the Project is best recognised by third parties.”
The company raised £1.1m on 19th February at 1.75p. The share price is 0.68p today.
Ironveld reported a cash balance of £322,000 at end December 2018 following the raising of £400,000 in November 2018.
A Definitive Feasibility Study published in April 2014 was reported to confirm “Ironveld’s project viability to deliver an exceptionally high-grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. Vanadium and Titanium **** containing commercial grades of vanadium and titanium will also be produced and sold.”

Ferro Vanadium 80% FOB (China) US$38.4/kg vs US$38.5/kg

* Bushveld Minerals presented at the RMB / Morgan Stanley Big Five Investor Conference in South Africa yesterday.
* The presentation highlighted the future forecast growth for vanadium in vanadium electrolyte in Vanadium Redox Flow Batteries ‘VRFBs’.
* Management see a ‘sustained structural deficit’ in ferrovanadium driven by constrained supply, limited new supply prospects and robust demand from the steel sector with significant upside from energy storage, ie VRFBs..
* The team reckon vanadium demand should rise by 10-15% once China’s new high-strength rebar standards take full effect.
* This demand driver should drive the market into deficit on its own in our view though any pullback in economic growth may offset some increase in demand.
* Further Chinese stimulus in the form of new infrastructure projects such as Belt & Road type initiatives should be good for vanadium demand as these types of projects should normally require a greater proportion of high-strength rebar for longer-term longevity.
* ‘Greater enforcement of rebar standards is expected to drive up specific vanadium consumption rates in China, bringing it closer to the levels of developed economies
* China Rebar Standard requirements: Grade 3 (400MPa), Grade 4 (500MPa), and Grade 5 (600MPa), require 0.03% V, 0.06% V, and more than 0.1% V respectively.
* Steel production in China was 928mt in 2018 indicating that if China improves its vanadium consumption from 0,048 to 0,077 => 0,03kgV/t that this should lead to additional vanadium demand of 27,840 mtV representing around 30% of total 2018 vanadium supply.
* VRFB energy storage: According to Navigant, the two largest market segments in utility energy storage for the next 10 years will require long-duration energy storage.
* Stationary energy storage demand is growing at a rate of around 58%pa and should exceed 100GWh by 2027
* Flow batteries expected to capture around 18% of the market, according to Navigant equating to some 20GWh of demand and nearly US$10bn in revenue by 2027 with similar growth rates to solar as seen over the past 10 years.
* Supply: is not as elastic in vanadium as it is in some other metals with three out of the world’s four primary vanadium processing facilities based in South Africa.
* Conclusion: Bushveld owns two out of three of these facilities and therefore may potentially control much of the future market for primary vanadium supply. The company is well placed to command and to benefit from ongoing strong demand for vanadium and from higher prices to come from what looks like a developing deficit in the vanadium market.

Bushveld Minerals* (BMN LN) SP 21.3p, Mkt Cap £238m – Conference presentation in South Africa highlights forecast growth of vanadium electrolyte demand

(Bushveld Minerals owns 74% of Vametco, 84% of Bushveld Energy in South Africa, 100% of Lemur Holdings, 9.5% of Afritin)

"EXCEPTIONALLY STRONG" BUY – Valuatio

Great summary Ninja - and great to meet you on Tuesday!

Today, I was able to attend this large industry show which was focusing on the opportunities for the solar and energy storage markets here in the UK and Ireland.

The show was dominated by exhibitors supplying solar panels, fixing methods, and component suppliers for the integration of battery systems and several Lition Ion component suppliers. However, there were some very good seminars and it is very interesting in the Energy Storage Seminars that there is significant investment from new banks engaging with power data researchers determining that there is a massive opportunity in Energy storage both at the small and large grid-level installations. At this level the talk was not about Lithium Ion it was mentioning Flow Battery Technology. There were seminars showing similar technologies but the advantages we all know and understand here about Vanadium Redox Flow Batteries makes me think yet again that we have found the right technology. All that needs to happen is the VRFB manufacturers need to make a stronger presence globally at these shows. Our systems are large and have amazing properties. The Lithium-Ion systems are like bits you can buy from multiple suppliers bolt them together in a box and like lego and you can build your own system and paint your box and make 'John Smith Energy Storage Systems'.
There is no doubt, having seen and heard some of the presentations today that Bushveld Minerals are working into one of the largest new global markets on the planet and the energy storage market is truly massive. Bushveld Energy looks like they are the right time and the right place to exploit the opportunity.
I am more optimistic than ever!
Cheers, RK

Ferro Vanadium 80% FOB (China) US$38.5/kg vs US$38.5/kg

South Africa - US$11bn renewable energy initiative.

South Africa is working on a plan for an $11bn renewable energy initiative using development finance institutions and private funders.
The idea is for the initiative to support the construction of renewable power to enable the closure of South Africa’s worst coal fired power stations
South Africa is one of the world’s worst polluters ranking 14th in terms of greenhouse gas emissions
Eskom which supplies around 95% of South African power is carrying some $30bn in debt following years of mismanagement and corruption.
While the board of Eskom has been changed by the South African president the state utility is still struggling to meet demand for power due to years of underinvestment
South Africa is also committed to reduce emissions by 42% by 2025.

Razor I wrote back to The Fool again this evening pointing out further in accuracies and giving so rather concerning problems which are far more relevant about large scale Lithium batteries which they should consider. I also sent the The Fool the article on The Saudis massive investment in VRFB announced today. Just to give so me scale to the market. Hopefully they will do further research and there may be some more reasons soon highlighted why this technology will disrupt the energy storage market and Vanadium Redox Flow Batteries are the future of stationary storage. Watch this space.
Cheers RK
PS - Oh definitely a BUY!

Sorry, two articles! Sorry for the typo!! Fat fingers...

It is interesting that The Motley Fool have actually written tow articles about Bushveld Minerals in the last 48 hours
On Saturday:
https://www.fool.co.uk/investing/2019/09/14/thinking-about-buying-the-bmn-share-price-read-this-first/

The above one was not very accurate and poorly written! I spent some time and wrote to them correcting the errors and pointing out some important factors which have influenced and will influence the future. You can see how I rewrote this further back on this thread!

On Sunday:
https://www.fool.co.uk/investing/2019/09/15/for-sunday-why-i-think-the-bmn-share-price-could-be-set-for-a-rebound/

Certainly a better read and a better-constructed article. We should be pleased to see these articles as they will open new investors via the Apple Share App as well as Yahoo Finance who use these articles in there investor news feeds.

The simple fact that VRFB technology is going to be more and more in the news in future will mean people will want to know how to invest in this technology and its supply chain and we are at the pinnacle of both in what we offer.

Other news!

Bushveld Minerals are closer to having there first Minigrid using a solar array with energy storage installed at Vametco from a recent tender document for this project :

"South Africa is currently facing power supply shortages, this is evident through the power cut or load shedding that has been occurring nationally. South Africa has, in the past, depended on non- renewable energy, mainly the burning of fossil fuel (coal) as a means of energy supply. Due to these power supply challenges; South Africa has shifted its focus on the need to explore other means of power supply such as the Independent Power Producer (IPP). The IPP projects makes use of renewable energy as a means of energy production and supply. This proposed study project is a pilot project for combining PV solar with battery storage (Vanadium Redox Flow in this case), a new technology that has been successfully implemented in the United States of America at the Maharishi University. This pilot project at Vametco will assess the economic and technological feasibility of such a project within the South African context."

Bushveld will demonstrate the importance and capability to SA through this key project and it will benefit the plant!

Cheers, RK

Faramog, did you sell off all your ATM shares then? You sound very miffed at the moment about the ATM situation. I think the opposite, It was a good thing to do as the capital required to expand the Tin mine would be large and BMN needs to focus on the vanadium market. This is the reason why we need to lose Lemur at the time which is right so we become a pure vanadium business and keep our green credentials. You have to look at the complete strategy and think about how the market assesses businesses, in my opinion.
Chin up sir, we have lots of news coming which will all be good.
Cheers, RK

That means a lot of beautiful islands will disappear and communities will be lost forever!

If you want to go to the worlds most beautiful islands you best go soon! 10M no more Maldive Islands! All the biodiversity of the coral reefs are gone! It has got to stop!

Part 2:
Risks ahead
BMN share price should grow over the next few years if the company can meet its growth targets and its expansion plans. However, as with any commodity producer there are risks, but the vanadium market is growing quickly and new energy storage technology called Vanadium Redox Flow Batteries and these have multiple advantages over Lithium Ion for stationary systems. There is always potential that can go wrong as Sirius Minerals shareholders have discovered (but that company has huge debt). However, unlike Sirius Minerals Bushveld are not building a mine and have no debt. They have grown the business through brownfield acquisitions bought at below market value and have repaid any financial support off within months on each acquisition.

Mining projects are usually delayed and come in above budget. But Bushveld growth strategy has bucked this trend. Meanwhile, Vanadium prices are volatile and difficult to predict. Rising prices typically lead to increased sector output, which drives down prices and profits. That’s just how the free market works.
To try and offset some of these risks, management has diversified the business into new areas such and they are building a vanadium electrolyte facility to produce electrolyte for these new Vanadium Redox Flow Batteries. They also own a 10% share in a tin mining company also listed called Afritin. These projects are still in their early stages, but they are progressing. According to the firm’s second-quarter trading update, Bushveld has produced its first batch of electrolyte. This has now been sent for testing at various battery producers. The group has also “delivered our first vanadium battery rental product.” Leasing the vanadium will ensure that the price of the vanadium which is a key part of the cost of a Vanadium Redox Flow Battery (VRFB) can be spread as an operation expenditure rather than an upfront capital expenditure. This will generate long term income for the business in this massively growing market of energy storage.

Self-sustaining
Bushveld certainly looks to be an exciting business operating with plenty of potential for growth over the next few years. Most importantly, the company is also self-sustaining.
Its second-quarter trading update reports that the business’s mining arm, Vametco, is cash flow positive providing vital cash to support the rest of the business. On top of this, the company had $44m of net cash on the balance sheet at the end of 2018 and no debt, giving the group plenty of financial flexibility.
The bottom line
So overall, if you are thinking about buying the BMN share price, it is worth taking into consideration the risks that face the business as well as its growth prospects. In my opinion, the firm’s cash generation and strong balance sheet mitigate the threats to the business model here. With its growth into one of the fastest-growing global markets energy storage, it looks a very strong opportunity for investors.

Cheers RK

This is what they could have written:

Part 1 :
Bushveld Minerals (LSE: BMN) saw its share price rise nearly 500% in 2018, but the company hasn’t been able to repeat this performance in 2019. At the time of writing, the stock has fallen 45% year-to-date as it followed the fall in the vanadium price.
However, following this decline, the BMN share price now looks cheap. However, before you buy in, there are several things you should know about this business and its potential.
Growth market
Bushveld is a dedicated miner and producer of vanadium, a rare-earth metal that is used in the construction, aerospace and automotive industries. By adding 0.5 kilo of vanadium to 1000 kilos of steel, its strength is doubled. Last year, the price of the metal hit a 13-year high, which ignited a surge of interest in companies with exposure to the commodity. Bushveld is one of the few publicly traded vanadium producers in the world, so naturally, investors flocked to the shares.
Thanks to this price spike, and production growth, Bushveld reported a net profit of $30m or three cents per share for 2018.
The small-cap miner is currently supplying approximately 3,000 metric tonnes per annum (mtV), 3% of the global vanadium market. It plans to increase production to more than 8,400 mtV within the next five years taking its share of the market to around 8.4%. If the company can meet this output target, sales should expand substantially from current levels.
City analysts are also expecting the company to profit from the rising vanadium price. Reports suggest that raw vanadium prices should reach a level of around $45 per kilo by 2020, up from the current price of $37 per kilo.

Finally a write up in the Fool. I have been over the years sending them requests for a report. The publicity that there reports receive is strong. What is always disappointing though is the inaccuracies within in it.
Like 3000 million tonnes of Vanadium per year! That would be nice.
Still that report may open new investors to research and that could be good for all existing and knowledgable investors here.
Cheers RK

Alfa, you are right 1000GWh would be a lot!!
But I think you mean 1000MWh which is 1 GWh. First phase is 200MWh using approximately 1000 mtV per annum. This will ramp up as required to 1000MWh.
I look forward to the day Whalen Bushveld do produce 1TWh of Electrolyte, we will be doing amazing then. Our valuation at at that point producing 50,0000 mtV per annum would be very high indeed!!
By the way I know this was a typo and Alfa knows more about this than any of us! So I am not actually correcting him!
But for every one if you join up the info presented in the RNS’s and on the Bushveld Energy website you can check the facts.
Cheers RK

"Ferro Vanadium 80% FOB (China) US$38.7/kg vs US$38.7/kg"

Something sounds Familiar - Just like Vametco!

"Australian Vanadium (AVL AU) A$0.014, A$28m – MOU for VSUN grant and installation of a new Solar and VRFB battery solution in Pilbara

Australian Vanadium report that their subsidiary VSUN is applying for a grant for the installation of a new photovoltaic and Vanadium Redox Flow Battery installation for a school in East Pilbara in Australia.
The installation could prove to be a new model for solar / battery installations across Australia in remote areas where the combination of solar with reliable and long-life battery backup can make a real difference to local communities.

Other News:

World’s first ocean-powered data center:



The power-hungry data centre will be supplied via a private network from tidal turbines at the MeyGen project off Scotland’s northern coast, the largest planned tidal stream project in the world and is the only commercial multi-turbine array to have commenced construction.
It is expected that the data centre would be connected to multiple international subsea fibre optic cables, offering a fast and reliable connection to Europe and the US.
The MeyGen project has a seabed lease and consents secured for a further 80MW of tidal capacity, in addition to the 6MW operational array which has now generated more than 20,000MWh of electricity for export to the grid (elektrek).
The target operation date for the centre is 2024, which falls in line with the scheduled completion of the MeyGen expansion plan.
Tim Cornelius, CEO of Simec Atlantis Energy, who is building the project, said “Data is being touted as the new oil. It is arguably becoming the world’s most valuable resource, and the amount of data requiring storage is increasing at a staggering pace. However, data centres are undeniably power-hungry, and the clients of data centre operators are rightly demanding power be sourced from renewable and sustainable sources.”

ConMan94, The Bushveld Minerals story is known over the world and you can be sure that both Fortune Mojepelo and Mikhail Nikomarov our two CEO's have been sharing the story over the world. There is much interest globally in the developments and the growth of the business and many companies want to be able to take Vanadium products from Bushveld as the business grows. many of the new vanadium companies setting up are highly envious of the business that BMN has set up.