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Harchris
My views on production costs back in June 23 were all based on facts pulled from the operational updates and financial statements, I recall well at the time that you dismissed the costs I was quoting, telling me they were in fact far lower. Turns out facts speak louder than gut feelings.
Harchris
I did try to warn you back in June 23.....
TrevorBrooking
Posted in: BMN
Posts: 983
Price: 2.80
No Opinion
RE: Loving Life & Mokopane27 Jun 2023 08:06
Coffeecups
My thoughts for the future:
I believe that production costs are still in excess of selling price (remember that prices have fallen by approx 14% over the last 6 months). Whilst they gained a cash benefit of around $8m due to selling down inventory, this will be eaten up in the current financial year by excess production costs. Where is the cash coming from after then? Another cash raise/dilution? Or sold to the Chinese on the cheap? Personally I think a sale is unlikely, there are too many PIs holding shares that will be unwilling to crystallise losses (after all they tell you only lose money when you sell).
Clearly you can only carry on loss-making for so long, although they do seem to have made a bit of an art of it over the last few years. This will only cease on significant price increases in vanadium. Despite all the claims that demand is/will exceeding supply in the market place, this is not feeding through to pricing. Is this due to a slower uptake of VFRB than anticipated? My take on it is that rise will come at some point, but this may be several years away and be too late for Bushveld. To my mind this is the biggest single factor in the future of Bushveld, and for now the pricing is going the wrong way.
Electrolyte - I see that as a white elephant at present, you would have thought that given it is about to go into live production that some sort of selling contracts would have been announced, we have heard nothing to date.
Mokopane; this has been mothballed having been bought at a cost of $68m. Part of this cost was provided against last year, I suspect the auditors will insist on further provisions going forwards. Although this won't have a cash impact, it will significantly weaken the balance sheet and therefore the ability to raise any required funding.
Just for transparency, I did buy back in a small amount last week hoping for a dead cat bounce. I suspect there may be a rise to 4 or 5p over the next few weeks with the excitement of a new CEO before reality sets in and it drifts down again, a small trading opportunity. (By the way, if operating progress has been so good, why did FM step down? Seems strange!)
Anyway, I'll leave it there. For all those with filter blinkers on (Pdub, Harchris etc), they won't see it anyway and quite frankly I don't care. They only see what they want to see and what makes them feel good. That policy has already cost them a lot of money, I hope it doesn't cost them all of it.
Wobble, FYI I've been invested in CPX for about 6 years!
Wobble, perhaps this share isn't for you, time to move on if not happy. It would save us all from your drivel.
Chosenone - "I am assuming imminent revs from £500mil of inventory already signed off waiting to be monetised will help….substantial due diligence fees and 2+ % fees on value of inventory monetised."
If you know anything about Syme you'll know that's a very foolish assumption to make!
Apologies Wobble, I wasn't aware you were an expert on supercapacitors so please do share with us your sales ideas that you have messaged the company with. I'm sure Lars will be impressed with your contributions and who knows, you could end up being offered a place on the board.
Been here since before all the hype, I was in at 0.07 or so, largely sold out but this has been disappointing on so many fronts.
Question is, would it cost more Syme shares to buy a loaf of bread than the 1923 Reichsmark did?
Don't be expecting a dividend, anytime soon, as at end of FY22 retained losses of £39M (since increased) , those losses would have to be cleared first before you can even start thinking about dividends.
Mucker: "Good luck all. Off to new investment pastures." I hope for your sake you improve your share price forecasting skills, not done so well on this one!
Memory of a goldfish Faramog:
"Ladybird book of Accounting 101 for TB anyone ?"
Don't try to backtrack when you've screwed up!
Faramog, I'll explain it in simple terms for you in the hope you might understand your stupidity. As at the end of the last financial year, they had a pile of stock they hadn't sold. This was included in the balance sheet as at asset with a carrying value, lets say £10m for the purpose of this example. When the stock was sold in the new year, eg for £11M, a profit of £1m (£11m sales proceeds lest stock cost of £10M) was realised., not the full proceeds of £11m
Hopefully this is easy enough for even you to understand, but somehow I doubt it.
Faramog, your lack of basic accounting understanding is quite staggering, I suggest you steer well clear from it. Ever heard of the matching principle, the first thing a trainee accountant is taught?
And as for "private correspondence" - of course you're not going to post it because it never existed!
Faramog, if that was the case then the accounts wouldn't have been signed off by the auditors, this is basic bookkeeping. I suggest you post the exact wording they gave you in their email as you have quite clearly misunderstood it!
Faramog - that stock wasn't pure bottom line in terms of P&L, it would have been carried in the balance sheet (at lower of cost or NRV) - given that the selling price probably wasn't much above cost of production, very little profit would have been recognised on the sale. Cash position is a different story, that would have benefited from the full amount of proceeds.
Mucker12 - "Not trolling. I'll keep repeating myself." - No need to keep repeating yourself, everyone's heard you and ignored you, move on. If you're correct (highly unlikely) then by all means come back and tell everyone, if not just don't bother coming back.
Clarkgriswold, the sad fact is that however much they strengthen the cash position, unless V pricing recovers it's all going to disappear over the next year or so. Still very much a gamble.
Is that the same person that said he would sell every share he held the day (mis)Fortune was no longer in charge? Hot on geography but not so good on investing?
Used to love Hustle back in the day, come to think of it, Fortune is a dead ringer for Adrian Lester!
From memory Bushveld were bidding on this contract several years ago, we were told it was in the bag!
Harchris, with net current assets of $91m I think Largo are far better placed to ride out the storm than Bushveld, wouldn't you agree?