Ecologist
31 Mar 2017
Out (at least) for now Frankly, 300% up since the start of the year was too much profit to overlook or to leave to the vagaries of the market.Funds already into HUR after their massive find (over a km of pay dirt) off Shetland.Probably back again to BMN but I think the price is a bit overdone at present.
quink ink
31 Mar 2017
Re: Gun to the head This is the least ramped share I have ever been involved in. Perhaps you could provide evidence of said ramping, because having held here for some time all I saw was the price falling. Then around 1.5p suddenly there was a turnaround and many were left scratching heads as to why now. We all knew a re-rate was due but no-one was ramping it at all. Then suddenly we were raising by 10/20/30% a day and again I saw no evidence of ramping, just pleased investors that the market was beginning to recognise the value. Now it seems that at least one of those huge rises was possibly caused by the start of a short position, again no ramping here.Now as for the last week, of course there has been some ramping. Both ramping and de-ramping. However the "ramping" is in direct response to attempts to de-ramp, and what makes the situation here different is that this "ramping" is backed with verifiable facts and analysis of RNS releases, whereas the "de-ramping" has been preying on fear or misinformation no matter how many times the true situation was used to counter.Now the finance deal is released and straight away said de-rampers (or possible shorters) start focussing just on a $1m bridge, which isn't repayable until after the deal is completed with the bridge value repayable from a single month of profits! No equity raise.Naturally a prudent CEO is never going to 100% commit one way or the other so Fortune is not going to say 100% there will be no equity raise. Situations change, markets change. However making the point clearly in the RNS regarding dilution shows that it is as near 100% as can be that there will be no dilution to cover this $1m.What is quite laughable from the de-rampers is that they choose to focus on $1m (which won't even be paid by shareholders it will come from profit) whilst the CEO has already saved shareholders from a potential capital raise of more than 200 million - that being the capital price estimated to be required to build a processing facility from scratch. Which makes this deal even more stunning quite frankly compared to 99.99% of other AIM miners past and present.The great thing about BMN is quite frankly no-one needs to ramp it. You can do your own research and all the information you need is there to see. If new investors don't want to research and only follow board posts for their buy/sell recommendations then that is up to them, but anyone scratching the research surface will see how monumentally undervalued BMN is, and Vametco is key to unlocking a lot more value believe you me.I am holding long term as are the majority.
cresta64
30 Mar 2017
Re: Gun to the head It may have been the only option until they actually control Vametco when other finance options will be opened. Worse case scenario would be they go to the share holders and do an equity raise for the $11 which would only be another 114m shares issued, with the recent warrant sales covering the interest.As a share holder I could live with that given that it will transform Bushveld from being an exploreer to becomiing a producer and open up opportunities for VRB electrolyte production.However - Fortune already stated in the RNS today that "BVL intends to refinance the Bridge Loan following completion of the Acquisition and discussions are advanced in this regard. There is no expectation that any refinance will be completed through an equity issue" so he's indicated that he's not expecting to finance via the equity route. Its possible that the finance could be through asset sale (tin or coal), IDC funding, UET funding, or a longer term loan at better interest rates which may be easier to get once BVL owns Vametco.The bottom line is how much do you trust Fortune to deliver? He's done very well in many peoples eyes, myself included, in switching from iron to Vanadium when iron prices fell (and presumably CREC lost interest), taking over Lemur cheaply giving access to coal and funds, Lemur taking over Brits, and now BVL taking over Vametco which can utilise Brits. So he has proved he can deliver. It should be an interesting couple of months.
Elviron1
30 Mar 2017
Re: Gun to the head I think you are raising some very real concerns here. I recommend you post them on the LSE board which is full of rampant bulls who will hear nothing bad said about BMN, largely due to their huge vested interests.Your well-reasoned views will offer a nice counter-balance.Or if you would prefer not to, with your permission, I'd be happy to.
EasyBrent
30 Mar 2017
Gun to the head Bushveld had a gun to the head when it comes to come up with financing to complete the SMC deal. With todays announcement I think they have put a canon to the head. - Agreeing to a $11m bridge loan which will be due in 2 months is a big gamble. Bushveld has struggled to find financing for the deal for 11 months and now they get some very expensive bridge financing which is due in 2 months. If they dont find a refinancing solution, our friends at Barak Fund SPC will be in control of Bushveld.- The interest on the loan of $939k for 2 months, 26.8% annual interest, show how the normal debt market isnt open for Bushveld. - The monetization of the Vametco inventory is also a dangerous path, this means that Bushveld is basically financing the acquisition the acquired company working capital. The clock start now, in 61 days Bushveld needs to find $11m.
fish lips
30 Mar 2017
Re: Connecting the dots Well the market seem to like the deal. 10p here we come.
Simbrad
03 Jun 2016
"The transformational acquisition achieves Bushveld's strategy to develop a significant, vertically integrated vanadium platform and accelerates the company's path to production by several years. We note that the total consideration payable for SMC is substantially less than the construction and development costs associated with a greenfield mine and plant of the same capacity. Vametco Alloys is a high quality, low cost producer with a patented vanadium product and a global vanadium customer base. We believe vanadium prices will recover in over the medium term due to increased demand coupled with curtailment of supply from high cost producers. A rebound in vanadium prices provides strong upside potential."
Simbrad
03 Jun 2016
Beaufort's note from this morning: "Bushveld Minerals, a diversified mineral development company with a portfolio of vanadium, iron ore, tin and coal assets in Africa, announced today that it has secured financing amounting to US$5.2m with strategic and financial partners. The proceeds will be used to complete the first phase of the acquisition of Strategic Minerals Corporation (SMC) from Evraz Group as announced on 9 May 2016. Bushveld with its partner Yellow Dragon, a private and strategic investor in African resource projects, will own 45% and 55% equity interest, respectively in Bushveld Vametco Limited (BVL), a special purpose vehicle established for the acquisition. SMC owns the producing Vametco vanadium mine in South Africa (Vametco Alloys). The total consideration of the acquisition is US$17.2m and will be executed in two tranches of US$4.7m and US$12.5m. Upon completion of Tranche 1, BVL will have an effective interest of 23% in SMC, which would increase to 78.8% on completion of Tranche 2. Bushveld will fund its portion through a placing of 98.3M new shares at a price of 1.8p per share. The funding package agreed with Yellow" From Research Tree
