Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"This is nonsense, the punt/bet/gamble on a quantum leap in vanadium prices (if you want to cynically call it that) is to buy Bushveld as BMN is the leveraged play on vanadium. A small rise in V from $40/kgV to $45/kgV doubles gross profits for BMN whereas you make a tiny gain investing in physical vanadium. A jump from $40/kgV to $50/kgV trebles gross profits and if we're then talking a 'quantum leap' an increase from $40/kgV to $80/kgV would see BMN gross profits balloon 11X vs a very modest doubling."
Conversely a small fall in V from $40 to $35 wipes out any gross profit and threatens Bushveld's ability to continue trading.
Are you sure you're an investor?
"An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns."
Sammy, how's vanadium pricing looking compared to 6 months ago?
Johnpwh, if you look at my posting history over the last month, a lot of them have related to production costs, which the rampers appear to ignore as the numbers don't suit their agenda. These numbers are based on facts that are not being disputed, is that not valuable research for shareholders? There's two sides to every coin.
Pdub, there's an awful lot of people on this board that have an entry point far higher than 3p, I don't think they'll be jumping up and down with joy just yet!
Still down about 10% on last year end pricing, can't see how they are making any profit at these levels, needs further substantial increases.
Faramog, your lack of accounting knowledge is clear to see: you are quoting average production cash cost; unfortunately this does not include admin, deprecaition & finance costs so I think you'll find the costs are a lot higher ($40-42) than you think. Selling price has also collapsed over the last quarter.
"But hey ... you see what you want .. I don't care one jot"
Faramog, please point me in the direction of where it states solid margin in the last operating statement, I must have missed that....either that or you just made it up?
Still loss making
I predicted this would happen in my post of 27th June, let's see what happens over the next few weeks
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.
Pdub, you fail to realise that this is a public bb and everyone is entitled to their own opinion, whether or not you agree with them. If you can't cope with that it may be better for you if you left.
I really hope people don't use broker notes as part of their investment decision process! Not known as the most accurate of publications.
It's largely irrelevant as to actual amounts paid, surely the question should be was he worth the money? In my opinion no, but others may disagree.
Fatbanker, from Cellcube's website:
CellCube and U.S. Vanadium have expanded their sales agreement to cover the increasing demand for vanadium redox flow battery electrolyte.
The 5-year supply agreement for up to 3 million liters / year comes with a price cap and is the first step of CellCube’s strategy to secure access to vanadium electrolyte long-term and to reduce dependencies on volatile vanadium price for their business growth.
Isleworth, in response to your question, it is my opinion that they will find it hard to break into the electrolyte markets in China & the USA as there are already established suppliers in play. These are currently the biggest 2 markets. Everything else is there to be won or lost.Vanadium of course is a different ball game, the USA don't currently produce it so of course there will be a demand.
Cellcube have an agreement with the same company
https://www.cellcube.com/cellcube-to-de-risk-vanadium-supply-and-price-risk/
You made me curious Isleworth so I've just done a quick google, there are electrolyte producers in the US, interestlingly one of them has a MOU to supply Invinity over there:
https://invinity.com/us-vanadium-and-invinity-sign-mou-to-form-us-joint-venture/
Isleworth - just going on the basis that it's going to be bulky, would make much more sense for the US to import vanadium and produce their own electrolyte. Given that we haven't heard news of any contracts in place I do wonder where the sales are coming from, any ideas?
Harchris, it will be interesting to see who they will sell electrolyte to: The Chinese appear to have their own production and I can't see it being cost effective to ship to the US? Just my opinion, interested to hear yours.
"The vanadium battery prospects have encouraged major Chinese vanadium producers to take part in producing the battery.
China’s biggest vanadium producer, Panzhihua Iron and Steel Group, formed a joint venture in October with battery maker Dalian Rongke Energy Storage Group to build a 2,000-cubic-meter-per-year vanadium electrolyte factory in Sichuan.
Panzhihua Iron & Steel will supply 4,000 tonnes of vanadium pentoxide for the Sichuan project and other vanadium battery projects that Dalian Rongke is operating this year. The amount will increase to 10,000 tonnes and 20,000 tonnes in 2023 and 2024 respectively, a source close to the projects said.
Hebei Iron & Steel Group (HISG), the world’s second-largest vanadium producer, in July 2022 completed construction of a production line with a capacity of 1,000 tonnes per year of vanadium electrolytes. HISG plans to build a 50,000-cubic-meter-per-year electrolyte production line and a 300-MW-per-year vanadium battery factory between 2022 and 2025."
From the same article:
"“As is the case with all ferroalloys, demand from the steel sector was subdued owing to trends in China, principally its zero-COVID strategy and faltering property and construction sectors,” Bedder said. “Vanadium prices were impacted accordingly and fell back.”
Question is, will the increased demand for batteries outweigh the drop in construction? Nobody knows at present and to pretend otherwise would be misleading.