Share
292 Posts.
lightbulb Created with Sketch. 10
clock Created with Sketch.
28/06/22
10:04
Share
Originally posted by copperroad:
↑
They are funded into Coyote anyway. If the POG crashed, then many of the gold producers in Australia would be in the same position. Bc8 costs are are lower than many in the peer group. Refer to Gareth’s recent Gold Coast preso charts. The company also has optionality around the assets. This is another reason why grade is king. Bc8 has the grade in the underground at Coyote of over 8g/t. . They could change tact and go for the high grade Speedy pit or underground and halt other expenditure. You would cut back on drilling. We can see why they wanted these assets. Management have been through hard times and understand that flexibility helps mitigate risks. This is the quickest, safest, low cost way to get cash flow and minimise your downside. Many Others would close operations before Bc8. Many other miners won’t have the option. This feeds into why I like more than one asset. Some Producers may forward sell some of their production. That helps to weather the storm. Management becomes everything again. Those without cash can expect major dilution and possible restructuring. You can run scenarios on all sorts of dooms day outcomes and it pays to know where things could go if the world ends. Companies that have a lot of debt and thin margins would close first or blow up. I think the chances of a toll treat remain positive on a dropping gold price since the mills would want higher grade ore feed from the likes of Myhree to help with their costs. Coyote has 351,000 ounces of high grade underground resource at 8.1g/t. That is way above the average head grade and would still make money while others would have stopped. The Speedy pit is 54,000 ounces at 7.4g/t and all these assets remain open to keep mining. That is an open pit resource that could be put through the mill very quickly once it’s in production. Most mines are down at 1.5-2g/t head grade so Bc8 is a multiple of that. I’m not focused on another placement with the current funded plan at Coyote , access to working capital and possible toll treatment option. It also helps that the management have plonked in $7.2m of their own cash and clearly don’t lack their own ability to stomp up. I would fund Bc8 over any other listed emerging players. This flexibility helps explain why they can access capital at every level of development. Risk will always be there for any miner. I won’t buy any off shore gold producers as I’ve been there and done that. Corruption and bad politics closed that door long ago. if the gold price melted, then the pressure on costs would start to drop and that would be fine by me. Contractors get less work, assay numbers slow down etc.
Expand
not likely just yet imho pete. With slr exiting the list of holders there was a chance but we learned from disclosures that directors increased their holding at the same time so now in even tighter hands .all good for the time being
Originally posted by pete11:
↑
Is it possible bc8 become a takeover target themselves especially when we are cash flow positive? In the next 12mths or so? Which would be a shame because than we wouldn't see the $3 bc8 we all want
Expand