The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
And was shot down in flames for being a troll!
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.
USA price now down 13.76% over last 12 months - where's all this pent up demand we keep being told about? Seems like it doesn't exist to me, DYOR
Codejunkie, we don't need to respond to some random persons opinion anymore than you do. People are more than capable of making their own decisions. My decision on whether or not an investment has been successful for me is judged solely by return, be it property, shares whatever. Bushveld has been a spectacular fail for all but a handful of people on this front and no amount of people telling me that operational progress is great and they've just struck a blinding deal is going to convince me otherwise. Its just a dog that's slowly going to have all its legs torn off in a slow and very painful death. Just my opinion, DYOR
A lot of positivity for this deal from the usual crowd, but the market doesn't lie - back to pre-RNS levels
Very clever of SPR, not only did they effectively get Mokopane for free (Vanchem was bought by Bushveld for north of 50m), they've guaranteed themselves a customer for any product, which will no doubt be on favourable terms to themselves.
Even cleverer is that CC has managed to sell off major assets without any shareholder approval. I'm sure he realised that had a takeover bid been received at current price, it would have been rejected by PIs out of hand. What guarantees are there that Vametco won't be sold off in the future?
Given that 50% of Vanchem and all of of Mokopane have been sold for $25m - this is going to create a loss on disposal in the next set of accounts.
Rather ironic that the teacher who treats everyone like his pupils and preaches piety is happy to resort to vulgar language in a DM. True colours shown.
Unfortunately the ZAR @ 19.24 does not outweigh the decrease of 11.88% in US vanadium prices over the last year.
Cost reductions are finite and will only bring in so much, increased revenues though volumes and prices are desperately needed.
It's no surprise you can't/won't actually address the point in hand, ie your failure to consider that there may alternative views to yours, which are based on facts. Says a lot about a man....
Metatreon, I suppose you think it's fine for someone to continuosly post "positives" about this share for the last few years when it's been in terminal decline, but the moment anyone tries to balance this with some real FACTS as opposed to hopes, then that's wrong? Guess you;re just another one trying to recover huge losses by drawing more people in. On that basis your opinions are worthless, as are your morals.
I should like to thank HMHG and others for bringing to the wider community the risks associateed with this share. Despite what Pdub and his legions believe, this share has been on a long, steady decline from 48p. Without their opinions Pdub could have suckered in many more punters in an attempt to prop up the share price for his benefit. Just my opinion, DYOR
And therein lies part of the problem faramog, they don't seem able to be able to achieve sustained production increases.
Harchris, relying on the vagaries of exchange rate movements to be able to make a profit (if indeed they do, given that V prices have fallen 11% over the last year) is a very dangerous and unsustainable way to run a business. Certainly not a long-term business strategy that I've come across in the past!
Not surprised Pdubs wetting his bed, his investment has fallen by 95% over the last few years!
V prices continue to be weak, price in the US down 11.45% on a year ago. Couldn't make any profit at last year's prices so not boding well for this year. $ ZAR exchange rate swing isn't going to put much of a dent in the losses.
A nice long list of assets that are generating losses....
Pdub, can you please stop spamming the board, you posted the same information less than 48 hours ago.
Metatron, for what it's worth I was posting on this board before you joined LSE!
Are you saying that people were wrong to listen to those that have warned of the company's poor performance, often in the face of vitriol from long term rampers? What's happened to the share price, who made the right call? Certainly not Pdub and his team!
Metatron, I trust you'll be posting a similar message to Pdub, the ultimate attention seeker?
I think you meant to say pub lost his fortune!