Sometimes good money to be made on the unloved. QBL was unloved at 0.7c and trading well below cash backing. Having a look around the sector, BAU seems to be in the well and truly unloved category.
A quick rundown.
Market Cap $29m (at 12.5c.)
Cash $41m.
EV -$12m dollars.
Bauxite Resource of 380mt (approx.150mt to BAU).
Bauxite close to rail and ports with capacity.
Grades seem to be higher AI and lower Silica than QBL.
One would think with the price improvement in QBL, BAU should at least get back to cash backing price (18c). Obviously upside from there. Nearly 50% price improvement from current levels if it can only get back to cash backing.
Anyway, seems to be a worthwhile punt at these levels.
Bauxite. EV -$12m. Market cap $29m. Cash $41m.
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