Market cap at today's close is 25m fully diluted, CORRECT.
But if you want to consider full dilution, you have to consider 6.15m cash which will be raised as a result of dilution. Have they got 6.15m cash? No, of course. With full conversion, BML will have 7.1m cash. This will sort out capital raising issues for at least 2 years and a lot of drilling outside of JV area will be done.
Another important factor to consider while considering full dilution is that many options do not get converted before the due date and many expires worthless (almost 95%). Although, in BML case I am sure they will be converted but I think most of them will not be converted till their expiry. By saying this, there is no harm to consider full dilution.
JV partner fully priced in, 50 % correct. Simply, we have not received the results yet. Depending on the results 25% market cap will be decided and the rest is dependant on Met tests along with 50% based on JOCR resource. Results will create hype along with nickel prices. These factors will also decide the future market cap.
Remember, first 7 holes were twin holes and most of them hit massive zones. The first two holes have hit zones in large widths. This means results are some how predictable not completely of course. The rest of holes.... I do not know whether the samples have been dispatched as yet.
In regards to the significance of today's news... There are few important things for me....
1. VTEM mineralisation in this area means new discovery in an unexplored area. This will change the whole dynamics of the project. Of course, mineralisation can be salt only but if they hit what VTEM have revealed, BML holders will be delighted along with BCL.
2. It has removed the uncertainty attached. For example, I did have a concern about all the money being used during this drilling campaign. It seems like the programme is well within budget and another relatively large drilling campaign may well be conducted within 4m.
3. BCL is working hard along with BML to prove the resource as soon as possible along with possible extension of the discovery to all sides. On top of this, they are happy to explore unexplored areas to make another discovery if possible.
This is just my opinion. People can disagree.
cheers
BML Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
(20min delay)