The best kind of silence19 Mar 2019 13:17
It's been a few months now since 48-50p and a rather epic consolidation since. I am sure many others, like I have, are using the recent quieter time to work on other things or take holidays, their excitement for what is to come, as mine is, undiminished!
Although it has felt long in BB terms, in reality this period of consolidation mentioned and wait for news is exactly when Bushveld will be at their most busy.
When you take time to reflect upon the enormity of the strategy at play, combining political positioning, rapid expansion through both brownfield acquisition / expansion of Vametco through Brits, potentially with greenfield of the most epic type (Mokopane) finally coming home to roost, new products and services (electrolyte and VRFB related), new premises (ELIDZ), and a project submission for a project of the size and sensitivity of the Eskom BESS project, let alone spinning off Lemur, and managing a JSE listing, it is really no surprise that the business isn't saying much at present.
The interdependency of each element is complex and also governed by critical time constraints. Shooting from the hip with news is not what this year is about. Being tactical and keeping cards close to the chest to achieve success across all these strands is. For me the less BMN say the more confident I am that the wider strategy is being fulfilled in the way it should be.
As BBN says, we need to be aware of the Vanadium prices, however we also know that lower prices unlock VRFB in a more straightforward manner, despite the perceived impact there may be on the bottom line of Vametco if they softened too much. In a structural deficit as we are in, I would be very surprised to see them go much lower. A bit of chicken and egg between buyers and sellers perhaps atm! We should also remember prices are generally at least 20% higher than this time last year and that ended up being quite a year I think most would agree.
I personally believe that the dovetailing of all these elements as the year progresses is going to be spectacular and that's what my investment is looking for and why I have all of my shares still. I want to see a maturing business drawing these constituent parts together successfully and not reacting to any short term fluctuations in investor sentiment due to lack of patience - and to me that is exactly what BMN are doing and why I am very relaxed about my investment.
Hope all are well.