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21 May, 5 tweets, 2 min read
1/5
 Bushveld Energy 2021 position if listed separately,

A. $8m profit on #IES investment.

B. 25.25% ownership in Enerox who's 2020 contract wins were c. 65% of what IES achieved and will hold $30m for expansion to production twice the size of IES.

#BMN

2/
 C. 55% ownership of a 200MWh electrolyte plant under construction with the IDC of S.A.

D. Mini-grid project under construction at Vametco in partnership with the IDC with potential to open up localised VRFB production and industrial opportunity.
3/
 E. Actively tendering for Eskom BESS projects totalling c. 1,440MWh with the battery tender element valued by the World Bank at $468m.

F. First active vanadium rental product in play with a UK client.
4/
 G. A guaranteed vanadium supply from one of the largest producers of vanadium in the world. Gaining them vital stable input costs and allowing them to actively chase work within a hugely expanded energy storage market.
5/
 That company + a profitable and very large vanadium miner (which is itself on a steep expansion curve in order to feed the needs stated above), operating in a rising vanadium price market are combined currently valued at just £186m.

The word 'undervalued' comes to mind.

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More from @BigBiteNow

BBN Profile picture
21 May
1/5
 In this enclosed blog I attempted to demonstrate the significance of the V205 $8 per lb point.

Given what has just been reported in China, I believe we will shortly see $9 pr lb V205.

#BMN

2/
 Here now is the same historical V205 price chart marked up at $9 per lb.

Upon hitting $9 per lb the only time since 1980 that the V205 price has not gone on to spike to at least $11.50 per lb was in 2006/07 but it was coming off a downtrend. Image
3/
 on all other occasions, the price continued higher because such pricing demonstrates a tight market is in play.

On a simple comparison to FeV that equates to a $50 per kg market.

Yes, we need more information on Europe/US prices.

thebushveldperspective.com/vanadium-prices
Read 5 tweets
BBN Profile picture
21 May
1/7
 The latest vanadium price report is now available.

V205 120,500 CNY/t now the norm. See my previous explanations for what this likely means for the price in dollars.

I make China V205 running at $8.70 per lb.

#BMN #vanadium

Image
2/
 That's now well above my $8 per lb rising trend break out point.

More importantly,

"People in the market has high enthusiasm for inquiries, and big factory is expected to adjust June V2O5 flake next week, and their wait-and-see sentiment increases."
3/
 As I have said previously the big factories in China are key here as they produce the vast majority of Chinese V205.

Here's a second report from today. Image
Read 7 tweets
BBN Profile picture
21 May
1/4
 As stated the other day #SRB hit AISC $1,080 at c. 40k oz production in 2019.

This year looking like min. 36,000 oz is on which will raise that AISC slightly.

However, we must not forget the exchange rate.

2/
 In 2019 the Brazil Real averaged R3.95 to a dollar.

YTD in 2021 it is running at R5.47 a dollar.

That's a 38% difference to 2019. The vast majority of SRB costs are in Brazil Real with revenues in dollars.
3/
 So it's going to have an effect and certainly gives me great confidence that my $1,200 AISC estimate is top end.

Gold price YTD is averaging $1,790 per oz.
Read 4 tweets
BBN Profile picture
21 May
1/12
This energetic and informative interview with #BMN Mikhail Nikomarov gives great insight into what VRFBs can potentially offer the S.A. market

From 3m 23s,

VRFBs are "cheaper if you need multiple hours of storage on a daily basis"

#vanadium

moneyweb.co.za/moneyweb-radio…
2/
 By "shifting energy from when it is sunny to when it's not, like in the evenings."

Also, to "support the transmission system and the distribution network."

There he touches upon S.A.s biggest hindrances "load shedding" but also "overloaded networks."
3/
 Added to this is the vanadium rental product which significantly reduces the upfront capital costs.

Given that Eskom is effectively broke but in need of efficiencies, it is a perfect solution for their ongoing troubles.
Read 12 tweets
BBN Profile picture
20 May
1/11
Further to my earlier set of tweets regarding the IDC's involvement with #BMN.

The 2020 interims stated that BMN,

"obtained a debt financing term-sheet from a French Development Bank, to be underwritten by a South African institution."

2/
 The IDC is a national development finance institution.

So give that the IDC state involvement in the mini-grid and the actual debt element appears to have come from a French Development Bank, then perhaps their role is as the underwriter. Image
3/
 If so then that demonstrates significant confidence in the product, the BE team, the future market and the relationship.

With everything I've discussed today in mind the following statement from the Q1 2020 update is all the more intriguing,
Read 11 tweets
BBN Profile picture
20 May
1/18
Enclosed below is a copy of the IDC 2020 accounts. The IDC is the S.A. Government's investment vehicle, investing c. $780m in 2020.

Their New Industries unit has taken a 45% stake in the #BMN electrolyte plant currently being built in South Africa.

idc.co.za/wp-content/upl…
2/
 Page 44 deals with the business activities of the New Industries unit.

What is interesting is on addition to the electrolyte plant they are clearly also the funder for the Vametco mini-grid which is currently awaiting license sign off from the regulator. Image
3/
 So not only are they backing electrolyte but also the project that BMN describe in their 11th Nov 2020 RNS as,

"one of the first solar generation project with long-duration storage to be financed, off-balance-sheet in Africa."

BMN go on to say,
Read 18 tweets

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