I have drawn a case study of using PLS as an example of growth compared with BGSs current position.
In May 2015 3 years ago almost to date one could have picked up PLS shares for 4c a share. The below bullet points detail significant points in PLS timeline over the past 3 years, also with corresponding share price at that point in time;
May 2015 - 4c (0% growth) share
June 2015 - 14c share (350% growth) - High Grade Lithium results being announced and capital raise for JORC drill out.
July 2015 - 14c share(350% growth) - MOUs signed for 70% offtake
Nov 2015 - 38c share(950% growth) - More capital raise
Feb 2016 - 40c share (1000% growth) - JORC upgrade 1% cut off 59.3Mt grading 1.44% Li2O
Mar 2016 - 50c share (1250% growth) - PFS release 2Mtpa plant 15 year mine life. 8 offtake MOUs. Plant Commission for 4th Qtr 17. Mine Cost estimate$184M Au, projected annual average EBITDA of A$103 million per annum
Apr 2016 - 80c share(2000% growth) - $100m capital raise
Aug 2016 - 55c share (1375% growth) - Double Reserves
Sept 2016 - 55c share(1375% growth) - DFS released 69.8Mt grading 1.26% Li2O - Signing agreements and 4MTPA expansion plan
Jan 2017 - 60c share (1500% growth) - Increased reserve Inferred Lithium Resource amounts to 110.3 Mt @ 1.44% Li2O. Commencement of Plant design and construction due for completion April 2018
Jun 2017 - 40c share (1000% growth) - Secure bond $100mUSD also raise of $80m
In the last year - 40c to $1.25 share currently 90c (3125% growth) - agreements, roadshows, capital raises and finalising mining construction and development. To now, beginning of production.
BGS are at PFS stage they have announced their initial PFS(1) which was way below market expectation and are currently proving to market the company is viable producing an update via a secondary PFS(2) due end of this month.
Putting into perspective assuming the price of 26c for BGS after PFS1 is equivalent to the 4c of PLS back in May 2015, we could possibly see growth before first production of about 3000%, therefore price action of roughly $8 to $10 per share.
Assumptions made are of similar path to market and timeframe as PLS with similar mining capacity and costs. Also assuming PLS doesn’t shoot up in price over the fore coming production months. PLS also is likely to experience growth over next couple of years paralleled with its repayment of debt and expansion through increased processed quantities and expanded new permits.
BGS board have suggested they aim to target production by 2020. They might have less local and national tribal and jurisdiction problems to tackle than PLS, if the communities and government act in their favour, also gold deals could aid the path forward and require less capital raise. It is highly probable that large MOUs will start to emerge over the next one to three months for BGS as after PLS JORC release this is when they occurred.
GLTAH
Please be aware this information is very loose and not 100% accurate. Do not shoot the messenger if you miss out over the next couple of years.g
(20min delay)