RE: Wow !3 Dec 2020 15:09
Alastair, I agree with your last post. Imo, I think the Enerox move suggested by Myles is actually on the cards anyway given all of the references to localised VRFB assembly and FM's clear desire to build out vertical integration. As a means to fund the acquisition the suggested approach makes sense, however there is also locked into that opportunity a Vametco-esque methodology where actually owning Enerox to a greater degree unlocks a potentially greater slice of the Eskom pie, which could ultimately be used to pay for some of this. The approach Myles suggested makes sense but is also akin to essentially hijacking the SP and forcing the market makers hand to get us to around 25p - just below our NAV, as justified by ARC recently.
Obviously 25p would be welcomed, but the bigger issue is beyond just getting to 25p for me - it is the one you mention in your last post, it is recognition of the whole of the businesses vertically integrated offer, and all of the multi-faceted revenue generation that each part of the vertically integrated journey presents. We are missing out on the boost in value being given to green tech stocks because the market doesn't yet place enough weighting on our performance as an enabler for VRFB and our VI offer. For me there has to be some evolution in the way Bushveld is presented to the market to accommodate this. The problem is, even here, people talk about the mining business then tack on something about BE. The journey through the Bushveld story needs to start to place greater weighting on the entire VI offer and spell out to the market the actual forecast revenues from each stage of the journey and build out our regular updates around this, similarly to how you describe in your post with measurable and clearly laid our forecasts. We should be showcasing our uniqueness and breadth, making the market sit up and take notice of the fact that no one else is doing what we are to the same degree.
Also Mikhail really needs to start being more public in the investor space. He is such an asset and he is so rarely interviewed / deployed beyond the odd expo type setting. Having a figurehead that is regularly operating in the public domain, talking about Eskom, talking about energy generation, VRFB assembly, electrolyte and potential customers makes this all much more real for investors.
And really, what we need to see is the long talked about hedge to vanadium prices actually delivering cold, hard returns to the bottom line. Because until that happens, it isn't actually a hedge for us.
Sign In
Follow the stocks
