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i reckon traders dominated market tend to see the glass half...

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ANTON707

2,804 Posts.

600

07/01/22

17:33

Post #: 58713087
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Originally posted by HaastsEagle: ↑

Lets play a wee mind-game. Lets assume that the price of BRB last Friday at 29c was about right. Lets set aside any sourness as to how BRB got to be a gold-only company (i.e last weeks deal) and lets discount the possibility that the 29c was the result of fleeing disgruntled shareholders; that is, to repeat myself, lets assume 29c is about right.

Then lets assume that last Friday BRB was a 20% participant in a (future) project which has driven around - this is really rough - some $80M or 100% (I am setting aside any commercial synergies arising from and perceived value increase in, the other Marble Bar project held by GL1) to that other company in a week. Then assume that BRB is also the holder of 10M shares in a company whose price has doubled in the week representing a value increase of about $6M.

Then assume the price of BRB's main residual asset gold has held relatively stable over the week.

Next assume all the action in that other project/company is justified because so many folks you read on a thing called HC keep saying so.

Then ask yourself the question (looking at this scenario as a snapshot and not the result of a process involving emotion) what would this BRB be worth? Assuming static gold, assuming you hold 20% of a project that is a surefire thing (cause that other company's share price attests to that), assuming an $80M increase in value of the company holding that other project and $6M increase in value of your share investment and noting your own MC last week of about $100M, wouldn't a 10-20% jump in BRB share price be in order?

In brief I know why you bought more and I will do the same next week. Simply - if the same Li deal which is making some sour is actually "a thing" then on that alone and stripping all the emotion out of it, BRB should have jumped into early 30s this week.

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i reckon traders dominated market tend to see the glass half empty whilst in this case me see it half full ! As I said this deal makes the company and its project stronger, time will tell

BRB Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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