Again, the root of all your thesis and your fall back position for every point is to point at the share price. Some may say that is fair, others may say that means there is unsubscribed value present. A slow moving share price supports the former, whereas a half year dividend yield in the vicinity of 20% puts up a decent argument for the latter. Quite the conundrum for would be investors.
But the company still has plenty of land to explore and develop.If it is ever worth developing. They may find nothing. Lost Dog extension was marginal if that was any indication. At the moment, it is just land which can be explored, and is priced as such.
The company have already indicated that a resource upgrade is coming, not only from exploration, but also on the existing resource due to an uplift in the economics.
I'm willing to bet my mothers wedding ring that they can extend said plant. Exactly. A mere bet/punt which, again, is priced as such.
That comment is being taken far too literally, and you know it.
So they will pay their dividend and cash reserves will continue to grow whilst the exploration of current tenement continues. Fair point. Their cash position in 4 years looks to be secure enough for some exploration.... I retract my idea that they may need a future CR. However, that position merely makes BCN an exploration company in 4 years time with cash to burn on drilling, and no guarantee of growing reserves. If they miss with the drill, my CR assertion may easily become fact. It would seems the market is pricing it as such.
Cash position in 4 years time based on current projection would see the coffers at circa $100m on hand, and another $80m paid out in dividends, with zero debt and fully funded operations and exploration. I.e. the company could nearly buy itself twice over. Sometimes the market is far too slow in pricing things correctly, sometimes it is far too quick.
You are entitled to your opinion, just as I am entitled to ask for an explanation on it. I appreciate the conversation and happy to agree to disagree, and I can hold and you can remain a non-holder, that is the beauty of markets.
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