A summary of analyst coverage
30 December 2017
Summary of Analyses
Alternative Resource Capital - Upgraded Target 19.8p
Balance sheet strengthened, vanadium marches on
Bushveld’s recent US$22m equity placing strengthens the group’s balance sheet as it looks to simplify its organisational structure to improve exposure to the underlying cash flow of its majority-owned Vametco vanadium operation in South Africa. Moreover, it has added institutional and mining-specialist investors to a previously retail-investor dominated shareholder register....
Our resultant 20p sum-of-parts valuation represents >30% upside to Bushveld’s share price, a valuation gap we think should narrow as Bushveld further executes its expansion plans for Vametco and begins drawing up surplus cash flow.
Alternative Resource Capital - Initial Target 14p
Right commodity, right asset, right time
Bushveld’s recently-acquired Vametco operation in South Africa offers direct exposure to vanadium, one of the best performing metals over the last two years with prices surging four-fold from the lows of late 2015...
we see substantial valuation upside potential on vanadium price (FeV is currently trading around double our US$30/kg long-term (from 2020) assumption)
SP Angel - Target Decrease to 14p
Bushveld accelerates expansion to capitalise on higher vanadium price levels
BUY – Target price adjusted to 14 from 14.3p
We will continue to work through our forecasts in relation to higher vanadium prices and our rand rate assumptions and will update the market in due course.
Hallgarten - Initiation of Coverage
The recent upsurge in Vanadium prices sent investors (and promoters) scrambling to find primary Vanadium mines or projects into which they could sink their teeth. The choice was poor indeed. Back in the more balmy days of the turn of the decade the potential names to conjure with were only 5 or 6 companies, with only two being advanced....
SP Angel - Target Increase to 14p
Vanadium prices drive profits higher as management target expansion
Bushveld Minerals recently acquired control of the Vametco vanadium mine and process plant in South Africa. The deal paid for itself within four months of its acquisition and is significantly profitable. The company also have a stake in the Uis tin/lithium project in Namibia through Greenhills Resources as well as an integrated power project in Madagascar in Lemur Resources ....
SP Angel - Initial Target Price Set to 11.6p
Persistence, ‘Fortune’ and Good Luck
Bushveld Minerals is developing a world-class vanadium platform based around the Vametco processing plant in the Bushveld region of South Africa.
The combination of the existing Vametco mine and processing plant with new licenses to the north east will enable Vametco to confidently expand production. ....
This article only conveys the personal opinion of the author. Whilst every effort is made to ensure the content is accurate, we cannot guarantee the accuracy of the data shown. This article does not constitute professional, financial or investment advice and must not be used as a basis for making investment decisions.
Site content is not authorised by the FCA and you are not safeguarded by the Investor Protection measures of the Financial Services and Markets Act 2000. See our full disclaimer
Why does Hallgarten (19th Nov 2017) refer to opaque accounting practises ?
... when it's a fact that Vametco profit could surely not be counted as BMN profit before Yellow Dragon was bought out
What figure are SP Angel currently using for the V2O5 price
... and what will it take for them to increase the assumed price ?