TMT now has a very large target on its back, page-625

First 625 Last

Share
Profile

Follow
dbd25

7,307 Posts.

2879

14/06/23

18:01

Post #: 68286796
Share

Originally posted by Therookie88: ↑

Regarding bushveld. For more than 5 years they have repeatedly failed to meet production guidance or hit their growth projections despite saddling the company with huge debt. The plants are old and the South African electricity grid is on the verge of collapse. Every quarter the company fails to hit targets and report on one crisis after another. It's a case of one step forwards and two steps back with BMN and everything South African. Each step becomes harder as they carry more debt and uncertainty around the company's viability to survive.To emphasise the point the company borrowed and earmarked circa $45 million to take production to 6,800mtv across their 2 plants. The money was spent and the funds earmarked to raise production at Vametco was diverted to Vanchem, but didn't add a single kg of additional production to the planned expansion. The result was that the borrowed cash only raised production to circa 5,000 to 5,400mtv per year and they are struggling to hit even these downgraded figures
.To top it all the company then informed the market that they now need a further $151million to take production from 5,400mtv to their stated target of 8,400mtv.BMN are constantly walking a tightrope.

what confidence is the market gonna have to lend them another $150m when the last debt borrowed achieved nothing

look at the chart on BMN it tells the story, even in the recent price spikes between 2018 and now it’s barely been able to stop the rot. In my opinion tmt more likely to be in production in 2025 than bushveld. If they collapse as we come online some big money to be made by tmt. Prob pay off the debt in 12-18 months in that happens

Expand

Sadly, the political and economic situation in South Africa continues to deteriorate, and it could end up with Bushveld being forced to make further cuts to production even if they get further $$ investment, and mean delays relating to the financing and construction of VR8's mine. This would surely boost the economic case for TMT's project, and I agree that TMT looks to be the most likely to be the next V producer. But TMT might need to play this card - that the V mines in South Africa may not produce as much V in the next few years - to their potential financiers to persuade them to fund the big capex here (I'm now anticipating >$700m).

All IMHO, DYOR

TMT Price at posting: 29.0¢ Sentiment: None Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

Thursday's HotCopper trends: Paradigm's drug IP buy, MTM placement | June 26

ASX Market Close: Index creeps lower as half-year mark approaches | June 26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

'Not possible' to port renewable gas: ACCC takes AGN to court

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

First 625 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

TMT now has a very large target on its back, page-625

Top Stories

Thursday's HotCopper trends: Paradigm's drug IP buy, MTM placement | June 26

ASX Market Close: Index creeps lower as half-year mark approaches | June 26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

'Not possible' to port renewable gas: ACCC takes AGN to court

Australia’s gas crisis is here – and dying coal plants aren’t helping

Featured News