Ann: Extensional hits of up to 37g/t Au under Bombora, page-210

First 210 Last

Share
Profile

Follow
ANTON707

2,815 Posts.

600

07/12/21

09:25

Post #: 58118895
Share

Originally posted by timjames109: ↑

Underground resource at the end of an open pit rarely is valued well and always heavily discounted because it is too far down in the LOM production schedule to confidently/accurately forecast revenue and when/if factored into a DCF valuation, because of how far down the line the underground resource is, future cashflow would be so heavily discounted and not to mentioned unreliable because who knows what the POG is going to be in 7-10 years time.

Penny West was valued well because it's a high confidence, near term mine-able and one of the current highest grades deposits in Australia, high grade near surface stuff.

BRB needs to progress to the next phase of development and produce at the very minimum a scoping study to give the market some insight into what the project current looks like and how much more work needs to be done.

It is worrying that after over 300,000m of drilling, which isn't too far away from how many meters DEG had drilled at Hemi when they produced their scoping study, that the plan is for more drilling. When does it stop? where is the line in the sand? What is the pathway to production? Why can DEG provide a clear timeline and we can't? If the recent re-rate from 16c to 40c+ was mostly because of Li and not Au, I'd be really worried.

They need to complete the CR this week before valuations drop more. They can still raise a good chunk at a decent price. This will buy enough breathing room to dabble in both the Au & Li projects and see which one tickles the markets fancy.

Expand

penny west was valued 300M say this is 3 times it makes 900. If this is valued at 20% is 180M….which is very material for our market cap which is in the high 90s ATM. The amount of drilling give us high confidence and loads of data to move quick into PFS. DYOR

BRB Price at posting: 28.5¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

BUX

Buxton projects new graphite province discovery at WA Narryer play