RE: SP Angel BMN21 Jun 2019 14:35
What will be really interesting regarding commentary on the Vanchem deal is what view our brokers take regarding production and refurbishment. ie - whether we get a short term outlook from SPA regarding the initial circa 960MTV added to the production pot and then a procedural upgrade as refurbishment costs are pinned down more accurately and the rate of production increases ahead become more well known. I imagine this may be the case initially.
Furthermore, we also have to consider the fact we are half way through a year where it has been mentioned by Fortune that Mokopane may well be online in 11 months or so (albeit using mobile equipment initially) - the license will need to appear fairly soon for this to happen given the lead time of the required equipment, ($20m assigned)and where we have been informed that supply agreements for electrolyte from Bushveld Energy should be forthcoming.
These are some fairly big ticket items, and given SPA have an outlook nearing £1 at present, it may well be that in combination with Vanchem, this is the year they finally put a £1+ valuation on Bushveld. However you view their commentary, that will be a big deal.