Some very interesting information here about refractory gold ore, which completely explains (for me) why their stock price has not appreciated as expected. Refractory gold ore is a complete bitch to process, and the recoveries can be only around 60% to 70%.
They will apparently attempt to get around this, by exporting concentrate to China, if they can, because expensive processes like the Albion and other processes have not been completely successful in treating refractory ore. A lot of gold mines have gone down because investors think that gold ore is all the same, but the experts know that there is a huge difference between free-milling ore, and refractory ore.
I was not aware that these guys had so much refractory ore - which is a detriment now, for me, so I'll probably be looking elsewhere, as these guys also apparently are. These directors have now joined another board, and they are in the pilbara looking for free milling gold ore so they don't have to go through with all these hellish difficulties with refractory ore again.
As a result, I don't think this company will ever reach a big valuation now, because of their refractory ore, and I think that is why the directors have move onto the board of another company.
It just goes to show, all gold is not gold, and it's not all created equal.
The share price has gone from 12c last Sept, to 8c now, during an absolute gold boom when all other gold stocks have gone up 200% to 600% - so that has to tell you something.
What does it tell you then ?
It tells you that the Fund Manager know what type of gold BDC have, and they have subsequently heavily discounted it, because they believe only 60% or 70% of it can be extracted, which is why BDC are now trying promote gold concentrate exports, to China rather than gold processing results in Australia. As a result of this, it is my humble opinion, that this company will probably always be marked down, until they can acquire some free milling gold projects.
This is fairly valued around 8 cents, you wouldn't want to pay much more.
Gw
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