Lithium Spin Off, page-218

First 218 Last

Share
Profile

Follow
PutSauce

523 Posts.

190

02/04/22

15:31

Post #: 60601031
Share

Originally posted by Goldbug23: ↑

Hi @GoldBug26, you must be a second cousin or something? I think I remember you from aunt May’s funeral years ago. Just jokes.

I heard this week through the grapevine that some brokers are treating Bombora as an uneconomic resource and not recommending the company to clients, hence the discounted share price.

I think that the brokers are dead wrong and the resource will be economic. This news highlighted to me that the key step to unlocking the value is to demonstrate to brokers that the resource is viable. A scoping study may help somewhat in this regard, but a positive PFS is really required to initiate broad coverage from brokers.

PFS could easily be another year away or more, but the share price could double or triple on a positive PFS, so that’s a good return and worth the wait.

If I was in management, I would draw the line soon on the resource and start the PFS, but keep drilling and include further resource discovery into the BFS down the track.

Expand

Hey @Goldbug23, I remember you! On a positive note, we do have a fair amount already in the indicated category, but the value that Mr Market places on the company is the tell tale sign. The proof is in the pudding for BRB and some real initiative is needed this year. A double or triple of the current price as you indicated is not so far fetched if the right milestones are hit in a timely manner.

BRB Price at posting: 25.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

HXL

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

OPL

Opyl forms JV with UK and US consortium to bring products to the world

AAI

NYSE-listed Alcoa Corp joins ASX through key JV acquisition