Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Ecologist, whilst I accept that it is relatively small beer, the principle is more support for VRFB's and that has to be positive, even allowing for the fact that Mustang are getting there via a reverse takeover.
The RNS this morning of the investment by Mustang in Enerox is really good news and I am surprised that as yet the market hasn't taken on board the importance of having Mustang on board as an investor. Whilst I think we were aware of the possibility of this happening, to see it in black and white in an RNS is excellent, and just further endorsement of the route BMN have been going down.
Dumbpunter. I agree, and add in the arrangements with GALP and I believe you have a winning hand. GALP have the financial muscle to see this through and would not have gone as far as they have without significant economic and financial due diligence. This gives me significant comfort.
Every mining project needs to raise funds if it is to make headway, and for a smaller miner such as Savannah placing is the only realistic way forward. Placings need to be done at a discount, and a minimum discount would have been 4.5p. Therefore whether the placing is at 4p or 4.5p over a period of time makes little difference. The main point is how long the cash will last and whether it will be spent wisely. I hope so. I topped up this week at just over 5p so I have every right to be miffed, but that is just the luck of the draw. I am happy as SAV was always going to need more funds at some point and now we know it is fully funded for some while. I just want to see SAV crack on and get to construction to take full benefit of the Li market in two years time. Investment is always about temporary setbacks. Today is an even better entry point.
Hi FB. I agree with you 100%. It is unfortunate that with AIM co's generally (i.e. BMN is not unique) lack of RNS/News = Drift in sp and drift in sp = disenchantment. Simple as that. The BMN fundamentals are still 100% intact and actually get better by the month, too many people are too impatient, and would be better off putting their money on the 3.00p.m. at Kempton!
Alfa- the only point I would add is that if FAR can't get the financing (and it is an enormous sum) it won't even matter how big or small the potential resource is. BMN has the finance to upgrade kilns and more.
A12Dy, this shareholding list is so out of date to make it totally useless. Whilst I haven't got a more recent copy I know much more upto date copies exist for those that are interested. I can't actually remember who compiled the list.
Make hay while the sun shines! It's been a long summer. It is clear that since 11th Jan sales have significantly outweighed buys, and this is totally contrary to what we might have thought given the Vanadium price. However it is what it is and I agree that we will very shortly see a major rerate. We had exactly the same comments 4 months ago when the sp was 9p. FYI I have invested in a couple of other mineral developers over the last couple of months both of which have doubled in price. Basically they have been the flavour of the month. Times will change and they too will move into a stagnant period with downward drift. It happens to all shares and you just need to be patient. I agree it is easier said than done. Best not to sell anything unless the prospects for the company are poor. That is not the case with BMN in the foreseeable future. DYI research as always, but it is not difficult with excellent contributors to this BB alone.
Nonegs, a few thoughts for you.
1. Running winners and cutting losers I have always found to be a good bet. There are many times I have hoped that falling shares will rebound, only to be disappointed.
2.Whilst I wouldn't put all my eggs in one basket, limiting yourself to circa 10% in one share is far too restrictive. Suppose you had invested in Tesla or Apple many years ago.(Apple being one where I always regretted selling shares far too early. My largest holding is circa 30% and I am comfortable with that, as whilst it isn't great at the moment I am 100% convinced in the investment case. i.e. it will come good.
3. You obviously have an appetite for risk, since otherwise you would not have invested in a company, whose major asset is in Angola, hasn't started mining and is proposing to build a plant, but hasn't yet found the cash to do so. I invested in PRE recently and see 100% return, but it only represents a small % of my portfolio. How much risk do you actually want?
4. Thus personally I would let the upward trend continue, but there will come a time when this share goes into retreat for a significant period (basically the unloved orphan stage), and there is little point continuing to hold even though ultimately it would be a good investment. The trick is knowing when you have reached that point bearing in mind it is often only possible to see the top in hindsight, although I am reasonably pleased with my decisions in that regard over the years (excluding Apple)
5. DO your own research, make your own judgements, all depending on the amount of risk you are prepared to take at any one time. Hope this helps (a bit!)
JD. I don't disagree it is part of the issue. As always there are no absolute answers. The good news is that whilst I can't predict exactly when it will change, the increase in V price alone will sooner or later make it irresistible to Buyers, quite apart from any other RNS's. It wouldn't entirely surprise me to see it lasting until the next trading statement. AIM co's thrive on RNS's, although I know there are those who think BMN RNS bring opposite results, and I agree they have in the past.
James2. Basic laws of supply and demand, sells very significantly exceed buys. Indeed it has primarily been the lack of demand that is the cause, as opposed to excessive selling. One day everyone will see what they are missing and then everyone will jump in at once, it is always the same. The herd instinct. Just sit tight and wait, our turn will come, and big time.
Sivad- the answer is that SAV is still a long way from generating cash and anything could have happened to the price of Lit, so in a sense it doesn't matter what the price currently is. Having said that this project in my view, to a large extent as a result of the participation of GALP, is much closer to fruition than it was 6 months ago, notwithstanding the important issue of financing is still outstanding. IT makes eminent sense for Europe to have its own Lit supplies and given the size of the motor industry on the iberian peninsula, it's not badly positioned although obviously transport to the rest of the EU is not that bad either. For all these reasons I remain a LTH.
Hillview/Westie et Al. As I previously indicated I have increased my holding during the current fall. The fall doesn't surprise me, it always seems to happen whenever there is a placing/other fundraise. The prospects for EML are better with more cash in its pocket. We have also seen exactly the same with HZM, where the price is now below the placing price, notwithstanding that the co.is now closer to finalising the financing. The same is true here. Logic dictates that you should sell on any placing and then buy back in later. The real problem is that EML could quite easily jump by 10%, and then there is the whole issue of the buy/sell spread that is disastrous for trying to trade small co's like EML
whilst I am not a shareholder here, you need to look at the bigger picture. It is the Nasdaq selloff over the last 2 days that is having a direct ripple effect here. All my techrelated shares are down . Hope this helps allay fears.