BAR vs CNJ, page-24

Hi Sirocco

Thanks! You ask a really really good question. Honestly - I don't have a definitive answer. BAR has been far higher than this last year, even though the price of Cobalt was far lower and the exploration at Burbanks less advanced. My main holding was purchased below 2 cents but I topped up at 6c last year in the firm belief (which I still hold) that 6c is still a bargain.

I think it mostly comes down to market doubt about the ability of Barra and CNJ to develop the Mt T resource. Now scepticism is a healthy thing - and far better than mindless optimism - but I think in this case it's overdone.

Sure - the Barra Boys have not accomplished a major new resource development project, or negotiated a major off take agreement with anyone. However they do have a history of very careful - and quite remarkably efficient - steady development of their gold projects. They definitely know how to use scarce funds wisely. They definitely know how to drive a good deal - the deal with Kidman to sell BG, and then buy it back - is evidence of that.

They have also brought in Sean Gregory to give themselves the mining development expertise they lacked. That was - for me - a sign of real maturity and wisdom.

CNJ is probably less competent, but indications are that Creasy will do a deal with the BAR/CNJ joint venture at some point.

So although it's still risky - (and if it wasn't, then BAR would be multiples of the current SP) - I'm confident that BAR is a lot less risky than the market (in general) realises.

Basically, I think the current SP is low because the market has over estimated the risk, and under estimated the competence of the management team. That makes it a very good buying opportunity if I (and many others on this forum) are correct.

I should add - I originally bought in to Barra at 1.8 cents on the strength of their gold projects - particularly Burbanks. For me, the current SP of 4.5 cents is a fair valuation of the gold projects alone - and further exploration at Burbanks could easily send it far higher.

The Mt Thirsty project is the icing on the cake but yes - if Cobalt keeps rising and the JV gets a deal - then Cobalt will BECOME the cake, with a bit of tasty gold icing on top.

Either way - I'm very happy to be holding Barra even though the SP is fairly stagnant right now.

Good luck to you Sirocco. If it's not rude though - could you swap your profile pic for that of a gorgeous woman? Or even a handsome man? "I'm not a racist" etc, but honestly dude, Orcs just don't do it for me, lol.

Best wishes anyway

Cheers

Dave

(PS If you really ARE an Orc, I take my last comment back - of course!!!)