BCN 0.00% 2.5¢ beacon minerals limited

I'll come back in December that would be a grievous...

  1. 2,784 Posts.
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    I'll come back in December
    that would be a grievous mistake.Worse, it constitutes an insult to BCN management who have to deal with a plaque of criticism on this forum.
    One of the the implications of your throw-away statement is that BCN management will not competently manage the evident substantial 2021 flow of cash from Jaurdi to capture sufficient stockmarket interest in the company to move its price. That may suit me as a continuing buyer but it wont suit you.
    Mind you I agree with the thrust of your contentions..especially life of mine. The BCN chair freely talks about a 10 year mine life at Jaurdi . Only the majors entertain such LOM projections. So is he kidding himself? Let me put this contention to you luku [ feel free to call me rosey, note little 'r'] or would you prefer lukusdemus ? The present BCN enterprise value of $90m can be justified on the returns from the processing of ores through the Jaurdi mill over the next 10 years.

    My back of the envelope calcs: That's 25000 ounzes per annum for an average annual net tolls [ after maintenance and operating cost] of $400 per ounze. Incidentally, Horizon recently paid $1000 per ounze for processing of its Boorora ore at Lakewood Mill.
    So if BCN announced that it was confining its activities to toll treatment alone then I could excuse your willingness to I'll come back in December
    But if BCN management insist on building life of mine production - their own, not someone elses- to 50,000 ounzes per annum then are they going to deplete cash in wasteful exploration grade tenement acquisitions or dumb acquisitions of over priced gold resource properties...an activity which is evident in some of their peers? I'm satisfied they wont waste the cash..mainly because they are the major shareholders in the company and they speak and cat wit the benefit of many decades of experience ..another point of difference from their peers.
    So, when will the market recognise the evident cashflow potential in their ownership of the Jaurdi mill in one of the most productive gold provinces in the world and in the credentials of BCN management ? If there is a shake-up amongst gold explorers and developers brought on by lower gold prices then I'm anticipating a closer evaluation of BCN by the broking fraternity who are busy promoting the worth of their latest placements. However, for many most of that worth is speculative ..not intrinsic as applies to BCN.
    end of lesson.
 
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