Thank you for your thoughts BB. Always appreciated, given your...

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177 Posts.

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05/07/18

10:57

Post #: 34155345
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Originally posted by blastfurnace ↑

I can understand some are a bit frustrated with the lack of price zing today, so am I. Not unexpected though, as BGS is an illiquid stock at the moment and there have been few significant liquidity events recently. It has been an arduous road to get to this point and patience has certainly been tested.

This is a very compelling PFS. For me the highlight is the EBITDA of $171 million. More profit in 1 year than the market cap of the Company. On top of that, the obvious potential to expand the production rate and life of mine, based on the Mineral Resource that is still to be converted to Ore Reserves.

It is worth pointing out that often studies such as this are met with a flat response initially, only to run hard weeks later. This happened with Pilbara Minerals a couple of years ago after they released their PFS.

The marketing of the project can accelerate now we have a compelling PFS in hand.
What we really need now, to convince the market (and silence the nay sayers), is a binding deal for offtake/financing. If (when?) we get that, we should really see some action. It's a good thing we have a proven deal maker on our side!

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Thank you for your thoughts BB. Always appreciated, given your geological experience-especially in Africa- and involvement in cobalt exploration company (CLA) in Namibia.

The revised PFS was a welcome sight. It is deliberately conservative- which I'd rather have- than wildly optimistic.

The fundamentals point to a viable economic lithium mine- pure and simple. That's all the confidence (and facts) that a potential investor/ off-take partner needs. Now we all need to sit back & let BGS start negotiating. This will take time, so don't expect a quick outcome....maybe in a few months time.

BGS Price at posting: 51.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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