Member Info for RichKen

If I had a Viva I would sell it and buy BMN shares ;-))

Thanks Sanchez, not had time to read the board today as I have just got in after a long business day. Clearly lots to catch up on. Just to be clear I have not sold or bought any shares today at all. I started out at 7pm this morning and have just finished now.

My support for Bushy is not changing and I think from every post I have made over that last weeks it is very clear my position. Look forward to catching up!

Cheers, RK

The bit investors don't get??

The dominant narrative today, when people are talking batteries, is still very much centered around EVs which is largely a lithium-ion space (mobile and energy-dense). Stationary energy storage is only beginning to catch on and as it does we think that the market will then cotton on to that. In an EV the use of a battery is typically a single application which is taking the car as far as you can from point A to point B. In a utility in a stationary application, a simple battery is doing multiple things from deferring transmission Capex investments to load shifting to integrating renewable energy and frequency regulation etc etc.

1. "Deferring transmission Capex investments" - this is something unless you work for the National Grid may not be very obvious. As a countries electrical loads increases, then you need to do two things, increase the amount of power generated to meet peak loads and you need to transfer that power to the large users like cities and industrial areas. With the uptake in EV's, Heat Source pumps for heating, the electrical power required around the country will increase. If Batteries are installed at strategic points on the grid, they are able to gradually charge up, to deliver power later needing lower power and use existing cables. If you don't do this you need larger cables to transmit the power! Lots of copper and huge capital cost!

2. Load shifting (Grid Balancing) - This is generally balancing the grid by storing power in times when there is low demand and discharging the power back on to the Grid when there is peak demand. Again large Energy Storage Systems reduce the need to switch on large power stations to make up the shortfall and multiple batteries can be used to balance the grid and shift the load.

3. Integrating renewable energy - the easy one! The sun does not shine 24 hours a day and the wind does not always blow so you can extend the use of renewable by storing it in the batteries and discharging when it is needed, rather than waisting this low-cost energy. If we think solar - the peak generation is 11 am till 4 pm, but peak supply-demand is not till 5 pm till 10 pm.

4. Frequency Regulation - Maintaining the frequency throughout the system at something very close to 50 Hertz is critically important. Every single generator in a big power grid must be spinning at this same speed or the system itself may become unstable.
If the system frequency deviates a little bit from 50 Hertz, then the spinning generators will naturally exert more force on one. The VRFB Battery contains inverters which control frequency so they can be used correct variances.

There are much longer answers to these questions, and some may people add to these points, but I guess a few PI Investors will not understand these additional points highlighted by Mikhail, which the VRFB is well suited to help with!

Our vanadium and VRFB can help with all these issues!

Hope this helps,

Cheers,

Pdub, on behalf of us all - many thanks for this transcript - a huge job!!

Superb and a must-read for every investor!
Cheers, RK

Bassguy, I think there are a number of VRFB currently under construction and the available Vanadium Electrolytes available are sufficient to meet the needs, and now the pricing is favorable. The VRFB world and market are growing organically and it will continue to do so.

From Bushveld Minerals perspective, we need our increased capacity which is coming on stream and next year will see production coming on stream of Electrolyte from both Vanchem and the New Electrolyte plant under construction in East London (SA). There is no doubt that the world is becoming more aware that Lithium-Ion is not the best solution to Stationary storage and there are multiple reports of fires involving installations and this is not a risk with VRFB. The long life span and repeatability of performance over multiple daily cycles with long duration 2, 4, 6 or even 8 hours! Large Lithium-Ion is 1-hour duration and only 1 cycle per day. The balanced cost over a lifetime makes VRFB much lower cost and as Mikhail has made clear the cost is further reduced as the initial cap-ex cost is lower and the lease of electrolyte will come out of the operating expenses (op-ex). These points will ensure the success going forward, the increase in projects will grow exponentially over the years ahead and this will work very well for Bushveld Minerals. No one understands this as well as the Bushveld Energy team under the expert guidance of Mikhail.

I cannot underline enough the opportunity that is going to be realised here for patient investors, both in terms of stock price growth and dividends and this is not relying on just the South African market. There will be a huge market over the whole continent of Africa and look at India, the need for huge energy infrastructure and renewables power generation which will well suit India will be larger than China's. Everyone is looking at China, but the population in India is growing much faster and the need will be huge!

The need for Vanadium for steel, Vanadium Chemicals, and VRFB will grow and grow and any investor fortunate enough to have found this investment at this low SP will be very pleased.

Cheers, RK

gkb47 - have you had a chance to read this document - http://www.bushveldminerals.com/wp-content/uploads/2017/08/201602040458050.pdf - It is one of the most comprehensive documents about Mokopane and you can fully see all the resource details.

It is also worth considering that this resource will not only be able to:
1 - Provide ore directly to a Chinese client - an agreement for this was highlighted around 18 months ago
2 - Provide Ore to Vanchem for processing - the clear point highlighted in the Vanchem RNS 1st May.
3. Provide ore to a Greenfield site which may be constructed in the future - which I think is highly likely as world demand increases.

RNS 23rd May 2019
Mokopane
Mokopane, one of the premier greenfield primary vanadium projects in the world, is a key element of Bushveld's vanadium strategy. Mokopane has been identified as a primary source of feedstock for Vanchem as a result of its large mineral reserve. The Mokopane-Vanchem model will create a fully-integrated business in a shorter timeline and at lower cost than developing Mokopane as a stand-alone operation. The conditional acquisition of Vanchem also provides product optionality, as Mokopane V2O5 can be toll treated into ferrovanadium at Vanchem. Other options include supplying ore to other primary or secondary producers worldwide. The long-term plan remains to develop Mokopane into a stand-alone, integrated mine and processing plant, producing 5,300 mtVp.a. of >99 percent purity V2O5 product.

From the Bushveld Minerals Website:

Mokopane is one of the world’s largest primary vanadium resources, with a 298 Mt JORC compliant resource and a weighted average V2O5 grade of 1.41% in-situ and 1.75% in magnetite.

Mokopane is intended to become a primary source of feedstock for Vanchem, creating a fully integrated vanadium production business in a shorter time frame and at a lower cost as opposed to a standalone operation. Bushveld Minerals retains the options of supplying ore to other primary or secondary producers worldwide and/or to develop Mokopane into an integrated mine and processing plant.

Bushveld Minerals currently owns an effective interest of 64% in the project.

For those who would like to know if BMN should by Ironveld, it would be more preferential for BMN to buy the additional 10% ownership of Mokopane. The balance, of course, would be owned by BEE. This would be a higher priority and this is exactly what Fortune did with Vametco.

Hope this is helpful.

Cheers, RK

The great thing with Vanchem having 3 Kilns, it gives options to Bushveld in the next 3 to 5 years, to run the ore at the most effective location and options to keep output up when one plant is on maintenance.

The greenfield will be funded out of a mix of income and debt (you are always best to use someone else's money to fund large capital projects), and keep the cash strong unless borrowing becomes expensive! I don't think we will see the Greenfield site being operative till 2024. So we need to be patient for that one, plus they have off-take options for ore (from Mokopane) directly to China to add another income stream if required!

Ophidian, your point about a greenfield site being built at Mokopane is included in the original scoping document -http://www.bushveldminerals.com/wp-content/uploads/2017/08/201602040458050.pdf a report you will have read from cover to cover at some point I am sure. Both you and BBN. I found it months ago a fascinating document.

Right now we have the target of 10,000 mtV as nameplate capacity for Vametco and Vanchem, which in todays market will give us around 10% of the worlds Vanadium. However, as we well aware the market demand from VRFB will increase this. So we can be sure by the end of 2022, we will need to be expanding and this is where the new "Greenfield Mokopane" site will be ideal. I would expect this to be initially targeting 5,000 mtV (I guess completion in 2023/4) but with the capacity to increase further to 10,000 mtV. This would give us somewhere between 16,800 mtV and 20,000 mtV per annum being mined and processed with potential for Vanadium electrolyte for 2 to 2.5GWh - this is likely to be bringing in a huge revenue, being mixed between Nitovan for the steel mills, V205 for steel and electrolyte as well as vanadium chemicals for other growing industries. We will have Bushveld Energy selling electrolyte, assembling VRFB, Bushveld Energy Projects enabling Renewable projects across African and India and a strong income from the Vanadium Electrolyte industry as well as a share of income from acquired VRFB manufacturers?

This should give us a very strong income, good profits leading to a very good annual dividend. The SP could easily be in the range of £3 to £5 with a dividend of around 4 to 5% - the equivalent of 15 to 25p per share. These figures may look odd and exaggerated to some, but seeing the progress and the global need for stationary energy storage, there is still no reason in my mind these achievements are not all possible. Of course, there may be many aspects that we are unaware of today which may accelerate these forecasts further.

These points again underline the reason why this investment is truly a standout. A 3 to 5 years plan is highlighted by Fortune in the interview today, but Mikhail is clearly looking to 2027 and beyond - so why not have a 10-year plan or even a 15-year plan?

These are ideas and I am not saying we will see a huge rise in SP straight away, but we will soon see I am sure the real value of the business today being realised.

Cheers, RK

Looking forward to the transcript Pdub. I think it could be a kid for SIRI! You will take up a days lot of posting! 25 minutes of fast talking will translate into a lot of text!

Thanks Alfa, that is still a huge amount of V!

1210 - Thank you for posting the link! Every BMN investor must listen to this interview, it should be compulsory!! Post at 11:25. Fast forward to 26 minutes and listen to the end!

I doubt it, myself. When you have 550 million tonnes of ore at 1.6% over the next 100 years do you need to buy more?

The last 5 minutes have some mega openings especially BMN taking positions in VRFB manufacturers! The enabling projects and leading project leadership. Mikhail expects the need for Vanadium in VRFB to be 55,000 tonnes per year by 2027.

YTSS, you are right but that imminent sound very imminent to me. FM sound very very excited, and the link to Vanchem is underlined very clearly. There is no doubt it is going to be confirmed very soon. I would not be surprised to see this coming out at the same time as Vanchem purchase being completed!
People keep asking what are SP drivers, well those two together have phenomenal upside potential!

Fortune also mentions towards the end that the revenue on the Bushveld Energy business will be 5 to 10 times that of the mining business. He also made clear that in future dividends will be paid from free cash as they are generation good income from the mine.

Hi Bassguy, what did you little man have? Just hope you both sleep well and are soon able to be home again. Take care! I imagine he is well looked after!
Cheers RK

Larry, we have a dividend policy. It was including in the annual report sir.
So we may get a dividend in 2020 if the 2019 year is completed and accounted if we have funds to support it.

Wul, the RNS you are looking for was on the 31st July:
Bushveld Energy
Electrolyte Plant
· The Environmental Impact Assessment ("EIA") for the proposed plant in East London, South Africa has passed the public participation stage and is on track to be completed this year.
· The first batch of electrolyte was successfully produced using Vametco's feedstock, with the samples being sent to vanadium battery companies for testing.
Vanadium electrolyte rental model
· Implementation of the first rental contract was announced with Avalon Battery Corporation and its customer, Sandbar, in the United States.
Eskom VRFB project
· The Vanadium Redox Flow Battery ("VRFB") installed with Eskom was commissioned and continues to operate.
Vametco based Solar Mini-Grid Project
· Commenced a number of activities including an Environmental Assessment, a grid connection and geotechnical studies. Procurement for the project will commence in the third quarter of 2019.

All points very positive and will lead to huge upside for BE.

I absolutely would add the increased production at Vametco Pdub.

I do think though that the opportunities at Vanchem to get 3 kilns running is a massive job to be completed. If Vametco can run effectively at the 3400 mtV level with optimised efficiencies which they are getting closure too as level it is very positive too.

Roosters - I would prefer they use that 6 million to complete works on Vametco and Vanchem so they are ready to supply the VRFB world as it expands.

If people want to see the SP move upwards the only way is to share the Bushveld story and encourage people who can see where this could go to buy in to it. Nothing is a sure thing, but this company over the last 3 years has beat the market and set itself apart from many businesses in SA too.
For my the key drivers as asked by F100:
- completion of Vanchem
- Mokopane licence
- completion of Electrolyte plant at BE
- JSE listing and change to the UK listing to the main market if possible.
- multiple BE supply contracts
- joint venture with a renewables energy company in Africa for solar or wind to accelerate implication of mini-grid projects

All potentially SP drivers.

But the key is bringing in investors who share the vision of the BOD and investors like you and me!

Cheers RK