no i agree as well, its more conceptual estimate if all right...

First 48 Last

Share
Profile

Follow
mystikal

1,692 Posts.

826

18/09/18

11:48

Post #: 35668037
Share

Originally posted by Jayfire ↑

BGS looks pretty cheap around here and there is a lot of upside potential. Having said that, it makes very little sense to try and compare this stock's current valuation to other companies in production with mines already built and FULLY FINANCED.

The "multiplicity factor" will be heavily dependent on financing/equity terms, for BGS around $200 million USD (capex + contingency) needs to be raised. Hopefully as non-dilutive as possible.

But I've seen what can happen if market doesn't like the terms, look at NMX for example. Hard rock developer in Canada. They raised C$1.1 billion but the share price crashed after the financing announcements (down from C$2.44/share to currently C$0.67/share), since a large component of financing came from equity, and some would argue at "too low" of a share price.

Not trying to be a buzzkill, but have to be realistic with these things and what can happen... Again, ton of upside potential with BGS but I'm not holding my breath expecting some ludicrous share price to ever materialize.

Expand

no i agree as well, its more conceptual estimate if all right boxes are ticked. and yes the other companies i have mentioned I meant comparing them when they were at similar to stage to BGS obviously they are further advanced than we are plus or minus a few factors such as PFS stats/sovereignty etc...

but yea everyone DYOR.

BGS Price at posting: 30.0¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply