Member Info for RichKen

In the end the growth of Bushveld Minerals will be driven by the global requirements for Vanadium in construction and Energy Storage systems. If SA doesn’t make best use of the resources you can be sure the rest of the world will. The market for energy storage is off the scale and global demand is going to be the same. Low cost production at Bushveld Minerals due to easy access to the ore, brownfield infrastructure will ensure faster profits and these points underline the inevitable growth.
That is it in a nutshell.
Goodnight all.

I just want to add to the discussion by being realistic. There is a lot of pointing fingers based on peoples strategies to their investments (don't forget if you point a finger there are 3 fingers pointing back at you!). Everyone has there own ways and levels of risks. For me, it is always about investing and building future security and BMN have given me and many here a huge lift. I have been honest before, about my pathway to my position here. For example, I followed a certain UK oil and gas company after one-morning hearing news that Surry was floating on billions of barrels of oil. It made headline news I pilled in £10K at 8am that morning by 10am I had £47. I sold out at 10:30 with around £37K. Not a bad mornings work. I watched it drift back and bought another 10K at around 1.3p sold at 1.7p (SP) and then waited and did the same it was bouncing up and down. Then they announced another potential resource and bought in again with a larger amount at 3p, sold at 9p after it hit nearly 10p. I have done this with other stocks with smaller amounts. But then found BMN and increased my holding to what was for me a significant amount but kept back around £5K to play with and kept making small gains and reinvested into BMN. Now it is clear that the price is moving up and down and it. There are patterns but not so obvious and I am not a chart man in terms of EW like some are. There are of course after strong rises opportunities to consider selling a small percentage of 0.5% to 2% and then holding the cash and then on the drops reinvesting. Overtime on a company that is growing, this is a way of increasing and accelerating your holding, it also helps stop the drops going too far. These concepts are not for everyone and easier when you have a larger holding. One point though, it is essential to find solid companies to build a portfolio for the long term. My confidence here is very strong and I truly believe in the company and the market is growing into as it has a positive outlook for the world as well as its investors. So small trades which help grow our investments can work out well. But you have to be careful and not every risk too much. As you could miss a large retrace up which is going to happen sooner or later.
Some will buy and hold and add more, some buy and just hold, some will trade buy-in and out and some will just buy in hope to make a profit and go to pastures new. But one thing is for sure if you find a stock which has great fundamentals like this one it is very good to build a good core holding because when it pays dividends you will be doing very well indeed.
These are my thoughts and ramblings. I can tell you one thing though, if someone gave me a million pounds tomorrow, I would be buying a huge amount more shares in BMN! I hope this helps explain the basic principles of growing your holdings.
Cheers, RK

Halespur, I can tell you from recent contact with Bushveld Energy there is much happening in the background and my contact was extremely positive although they were unable to share details for obvious reasons. But the key message was investors patience will bring many rewards because the level of interest to BE is very positive indeed.
Cheers, RK

The link - https://www.uploadlibrary.com/SPAngel_JohnMeyer/SP_Angel_-_Morning_View_-_Monday_05.08.19.pdf

Ninjamagic - Sorry I had not seen you had posted the SP Angel update! I should read back! Busy morning for me!

I think there are two points really with the pricing of Vanadium. Clearly, there is a price for the steel market where Vanadium becomes too expensive and you have to compare with Niobium, currently, the FeV price is lower. There are multiple advantages for the mills to use vanadium so it could have a premium, but it's worth taking this into consideration. Of course we have many times here discussed the advantages of the Nitovan Vametco product where the whole back is thrown in with the steel and this makes the process easier and it really should have a market premium, but in the end, it gives BMN a unique selling point and makes our product very desirable.
The second point is V205 or even V203 which is used for Vanadium Electrolyte. Clearly, this price needs to be lower to suit the VRFB world, but as it will always follow the market the leasing route will be the long term leveler. As long as there is enough in the market to meet the growing demand the price will be on track, however, if demand takes off the price could lift if we are not able to respond to the market needs with supply. This means multiple vanadium players meeting global demand for the different global markets. But as it stands we are in the best position right now!

Cheers, RK

"Ferro-vanadium prices rise on Chinese buying

Vanadium prices are rising in China and Western Europe with strong gains in China seen as driving a turnaround in European pricing.

Ferro-vanadium prices recovered 10.8% to US$40-42/kgVin China last week (prices are from FastmarketsMB).
Prices for ferro-vanadium also recovered by 3.6% to US$31-32.95/kgV in Western Europe

Vanadium pentoxide prices in Rotterdam also recovered US$10.1% to 6.7-7.5/lb.

The weaker renminbi combined with strengthening demand in China may cause traders to move vanadium stocks into China and away from weaker demand growth in Europe.

Expectations for greater stimulus in China to support the economy during US-China trade war negotiations may have some impact. China’s green shied and other environmental policies are keeping steel makers busy through the summer with maintenance shutdowns now scheduled in the winter months.

Greater enforcement of China’s new construction steel and rebar standards is also expected to drive vanadium demand in the short term. Chinese regulators appear to have allowed smaller steelmakers to continue to get away with producing lesser quality Quench & Temper steel which is tough but brittle and does not perform so well in earthquake or stress situations.
We suspect that steel mills supplying into major government infrastructure projects should use the higher standard vanadium rebar.
Vanadium demand should also rise for Vanadium Redox Flow Batteries ‘VRFBs’ as power storage to match solar and wind power gains increasing acceptance.

While Lithium-ion battery storage has delivered much of short-term power storage demand for new installations a developing shortage of lithium-ion batteries combined with their cost and shorter lifespan should cause power utilities and industrial consumers to favour VRFBs going forward.

Bushveld Mineral’s recent innovation in vanadium rental finance should make VRFBs very much more affordable for utilities with vanadium prices becoming less of an issue.

Ferro Vanadium 80% FOB (China) US$40.0/kg vs US$39.5/kg"

So this brings much very positive news to us and SP Angel are backing up all our thoughts that VRFB are the future for stationary storage.

Paladina, thanks for reminding us of the remarkable RNS from the 31st July (last week). Great progress and incredible figures re-enforcing the sterling work Fortune and Mikhail are achieving with the workforce. 2019 is looking like the perfect set up year for the future.
We have backed a very good business and Thor motives are honourable for the workers, the investors and the future of SA and our planet.
Looking forward to the week ahead,
Cheers RK.

I think you are likely to be right Ninjamagic! Target price this week 29p.

There is no doubt in my mind that the increase in the need for Vanadium around the world is going to drive all vanadium-based business from strength to strength. Demand in China is growing week by week and the steel market has a great need and the VRFB market is starting to go from a potential market to a developing market place.

We have seen over the last week a real change in the FeV price in Chian which is now impacting global vanadium markets. This will have a major impact on Bushveld Minerals profits. Our production costs have fallen, and our production figures and rising. When we add this to the upcoming plant upgrades, the transfer of ownership to Bushveld of Vanchem by late October we will really start to make our presence felt in the Vanadium Supply change with almost a 25% increase in output. Over the next 3 years, we can expect to see our output increase a further 300%.

It is also clear that the opportunities in Energy Storage that Vanadium can bring will change the dynamics of the stationary storage market. Lithium-Ion will always be a player here, but VRFB systems will make a growing year on year impact taking more and more of the larger projects as well as strategic projects which will bring a much higher market awareness and eventually the VRFB systems will be used to replace old Lithium-Ion systems. The length of life of VRFB systems is dependant on the membranes and as the development of the membranes improves we may see life spans exceeding the 30 years expected life that can be achieved today. This kind of life for a system is just what the power industry needs and will make the VRFB even lower-cost alternative to Lithium systems with all the safety advantages.
There is no doubt that Bushveld Minerals reserves are huge and our high-grade assets are going to be hugely valuable. If we consider potential further acquisitions either of additional reserves or ways to expand the vertical integration through potential VRFB manufacturers and even other renewable energy producers it could be easy see Fortune and Mikhail taking the lead of a new Energy Market position in Africa and suppliers to the world as the business expands. Excellent market stratergy and management have already set the foundations in place and time will allow us to develop in a country where success is hard to achieve, but if anyone can they can.

So with a hot market, we can expect to see strong growth in income, strong expansion in terms of operational output and efficiencies and with a world-class resource in a developing market, there is no better place to be.

Exciting times are ahead.

Cheers, RK

Coffeecups, I don’t think Glencore would by it. I think BMN with Vanchem in place would be better placed to take the off take from the Ironveld mine.
I am fully aware about the legend that was Mr Corbine. Are you still a holder here as you don’t post like you used too?
I noted you mentioned about Glencore’s supply agreement on other posts. You meant Largo not Rhovan? You will find Rhovan is owned by Glencore.

There seems after the last RNS at IRON, much speculation that the vanadium asset is for sale. The current MCAP is very low. The question in my mind would this be another astute purchase for BMN with Vanchem coming into our assets, another high grade resource with local processing capacity could be interesting? I think as I suggested earlier in the week that further acquisitions by our BOD could be possible. It is a question and a possibility?

YTSS, if you look at my list at the 11:46 post these are the key contributors. The other point is time. To be fair most companies grow, stabilize, then grow again, stabilize then grow again. The sizes of the jumps as the business become more profitable and more widely known also increases.
I would very much like to see the Bushveld Energy market really pushing and opening up. Then Lemur project being removed from the companies portfolio by floating it off or selling it.
Patience is key here and the real market value will be reached in 24 to 26 months time.
But take over is not going to happen. I think Fortune and Mikhail would block it too, they are building their life and the future of the business, and it is their baby and they want to see this project to completion.

Cheers, RK

Stringer - Tesla and Elon Musk have done a lot to bring Electric cars to the forefront and also the whole energy storage market. He has been visionary and we cannot dispute this and of course, he has a global following and much support, but you are right the VRFB for stationary energy storage has every benefit that a power generation producer would want in an energy storage system. You can be sure that the VRFB industry are doing everything they can to get the message out there and it is happening because more projects are coming than ever before. But Elon Musk is a name that the world knows when they think of EV's and battery storage, so they use his brand. It is a bit like people always used to call a vacuum cleaner a Hoover. Now that might call it a Dyson. It is about marketing.

You can be sure the message is getting out there even if you don't see it in the media.

Cheers, RK

Larky - I think it is more likely in the future that Bushveld Minerals will take someone else over, as they grow the business and expand. If BMN had no cash and were making a loss at the position they are at today, you would be quite correct. But they are debt-free and cash-rich and making as you say good profit. Any offer would have to truly substantial and that is why it is very very unlikely to happen. Their true value is near £1 billion.

Just added another 7857 shares to our portfolio at 25.3 still seems very cheap to be for £2 coins.

PS - sorry for the double post!

Lindon - I refer you to the RNS released on 31st July 2019:
"Mokopane Vanadium Project
A definitive feasibility study has commenced for the development of the Mokopane mine. Mokopane is intended to become a primary source of feedstock for Vanchem and its development will be accelerated as a result of the Transaction. The capital expenditure requirements associated with developing Mokopane are significantly reduced to approximately US$20 million (based on current estimates). The Mokopane-Vanchem business model will create a fully integrated business in a shorter time and at a lower cost than developing Mokopane as a standalone operation."

I don't think that statement is kicking the project into the grass. I think that is getting the pitch mowed ready for play!

Cheers, RK

Lindon - I refer you to the RNS released on 31st July 2019:
"Mokopane Vanadium Project
A definitive feasibility study has commenced for the development of the Mokopane mine. Mokopane is intended to become a primary source of feedstock for Vanchem and its development will be accelerated as a result of the Transaction. The capital expenditure requirements associated with developing Mokopane are significantly reduced to approximately US$20 million (based on current estimates). The Mokopane-Vanchem business model will create a fully integrated business in a shorter time and at a lower cost than developing Mokopane as a standalone operation."

I don't think that statement is kicking the project into the grass. I think that is getting the pitch mowed ready for play!

Cheers, RK

The SP here will improve as the market sees the direction change and the operation expansion becoming real.

We know the foundations are laid, the fundamentals are clear. The deliverables are:
- Vanchem Purchase Confirmed and Ownership transferred
- Bushveld Energy Electrolyte Plant Construction confirmed and dates for the first production
- Mokopane Licences and completion of new Definitive Feasibility Study
- Announcement of new VRFB supply project contracts of which a number are very likely
- Further, the increase in production outputs at Vametco beyond the 3400 mtV to 4200 mtV
- Increase production capacities at Vanchem from current levels as the plant upgrades are implemented
- Increase of market awareness of the potential to bring in multiple new investors due to clear long term growth, investor confidence and long term dividends making this business an essential holding for institutional investors in the UK and Africa
- Sale of Lemur
- Climate Change Investors coming on board

All these items are the surefire market drivers which will lift the SP in my opinion. There are many others along the way.

Day to day changes are almost irrelevant, the key is what will happen over the next 4, 8, 12, 18, 24 and 36 months as I expect to see the business turn into a multi-billion pound business.

I hope this helps.

Cheers, RK

Vanadium Price rise confirmed again:

Ferro Vanadium 80% FOB (China) US$39.5/kg vs US$39.3/kg