I don't see why anyone would be encouraging a dividend right now when V prices are low (albeit great for VRFB) and CAPEX requirements are so heavy. It will just mean more debt or even equity funding down the line. We have the electrolyte plant, Vanchem refurb and $20m (minimum) for Mokopane ahead, as well as phase 3 at Vametco. Everyone wants ROI, but now is not the time for a dividend.
RE: Interesting read about the ANC NECS energy statement04 Oct 2019 13:50
BBN, with respect clearly it isn't the only part of the narrative picked up on. I am simply discussing one aspect of the posts. I would hope having shared so many, discussing aspects of them in a positive manner would be acceptable!?
RE: Interesting read about the ANC NECS energy statement04 Oct 2019 13:35
Fortunately the foundations of this skyscraper are reinforced with Vanadium! I agree that the subjective element here is really down to what gets acknowledged and when.
For me, and again, its only my opinion, even if our value is currently pegged simply to vanadium pricing and processing capacity, the clear and present reality for this business is that yes it has suffered because of the aforementioned falling vanadium prices, but it has also been subject to immense amounts of transactional forces that have exacerbated moves downwards, in a market where those who set the prices are more than happy to exaggerate those same movements.
This has all happened with little recognition of the opportunity and timing this fall has for the future of the energy storage vehicle and the very real positive news and progress that has been coming from Bushveld during the year, much of it focused around the maturing of the business, progress towards Vanchem and general project development. Obviously that creates an opportunity for future value, and I agree with the skyscraper analogy, but I would just add that I think its important the current valuation is considered in the context of all that we have seen take place in the last 12 months, not just the vanadium price. Personally think given the pedigree of horses currently in Bushveld's stable, a value of below £250m just does not cut it, regardless, because VRFB aside, the progress and clear roadmap and milestones already achieved for the Vanadium business alone, demands much more from this ailing market regardless. It is almost bizarre how ostrich-like AIM is being to this company when compared to other businesses with similar financials.
RE: Interesting read about the ANC NECS energy statement04 Oct 2019 12:58
This narrative being presented also suggests the market has no capacity to be forward looking, no ability to recognise growth potential (current PE ratio anyone?) And won't even consider what lies ahead for BMN until it is fully over the line. That does not really align with how markets actually work imo.
RE: Interesting read about the ANC NECS energy statement04 Oct 2019 12:51
The continued question of pain for investors is interesting. The current share price of 21p is an exact demonstration of the elongated period of pain many shareholders have already experienced since last year, especially those who bought in at higher prices. Given we are already at such a low price, you could argue that the pain has already been experienced and the question is more around how long we can stagnate at this level. Unless of course you are suggesting further drops from this level. It also ignores the question of what fair value for the business as it currently stands is. If you believe that the business needs to land the VRFB business to show any major SP progress, that very much suggests you think the business is at fair value right now. This contradicts pretty much every valuation for Bushveld right now. Honestly I have to say that I struggle with the logic of this narrative given recent figures coming out of the company and its explicit growth prospects. It seems to undersell the current business quite dramatically.
Join Fortune Mojapelo, CEO of Bushveld Minerals @joburgindaba, this afternoon at 15:40 on a panel discussion - What Materials will benefit from the future energy landscape? The Energy Transition: What does it mean for mining? #thejoburgindaba #energystorage#mining#vrfbs
I am sure salary is only part of the reason. Bushveld are quite obviously a progressive and dynamic company, politically well positioned and are hiring a team with a core of talented women in a company leading the charge for an energy transition in SA, one of the hottest topics in SA. It's a savvy career move.
RE: Company financials by 4 Analysts30 Sep 2019 07:49
The fact you can buy shares at just over 20p from a high of 49p just goes to show how broken AIM actually is as far as actually delivering appropriate company valuations. We have not seen very consistent performance, improvements in costs and production and should be justifiably at 40p+ and looking forward to a Vanchem acquisition building upon that.
Very strong results. The key for me is that overall performance is not far off 2018 levels which were stellar. Costs are exceptionally low as was always the plan. Therefore be sure that a 60% drop in share price since last year's highs is completely overdone and an unfair representation of the performance delivered.