I'm a glutton for punishment and am back in with a small percentage of what I used to own .... Mainly off the back of the obvious accumulation which has been going on for a fair while now. Why Colin Petroulas has been increasing his stake in both BCN and MXR exponentially while the stock price has been ordinary at best is intriguing. Lets hope there is some eventual substance to all that.
Just on your numbers above RWE .... Probably best to err on the side of conservative given the boys poor performance over the last year or two. Their AISC is around $3300/ounce, so if we do the POG at say an average of $4K/ounce, and Production of 6000 ounces per quarter, that gives us $700/ounce X 6000= $4.2M profit X 4 quarters = approx $16-$17M profit for a year.
If they get the AISC down and the POG keeps rising, absolutely that figure could be higher but realistically if they bank $16M over the next 12 months while progressing the Projects, everyone will probably be happy.
The current price action is possibly making the BCNOD Options look a viable accumulation trade given the long dated expiry. A few being picked up at .006 today with the market depth above starting to look thin if we get any sort of nudge. Its a punt.
Sentiment set to BUY but "accumulate" would be more accurate.
BCN Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
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