Large companies with substantial revenues and positive cash...

Large companies with substantial revenues and positive cash flows can ignore price fluctuations. Small companies cannot. The market is telling both COB and BPL this is not a good situation. 

In theory BPL could now sell a 30% stake in the JV. However, based on the share price action the market is clearly of the view that there are no buyers for a minority stake in a developing junior with substantial capital requirements. The costs of the BFS mean the 30% holder needs to chip in around a minimum of $5m, nearly all of BPL’s market cap. If BPL needs to raise that amount it will need to issue a huge number of shares. This would completely change the nature of the business and its cash flow requirements. If the market believed BPL could execute a quick sale of the stake the share price wouldn’t be plummeting. 

So what’s a constructive solution?

IMO BPL and COB need to make amends quickly and agree a settlement to extend the BFS delivery date, this is unavoidable. COB could, for example, pay BPL 10m shares. BPL would then have a liquid asset that it could sell to fund its exploration into other metals and still retain the upside of the royalty stream. 

Such a settlement would work for both sets of shareholders and would stop the bleeding. It’s a win win. Currently we’re both paying heavily for the uncertainty.