Notwithstanding recent advances in indicated resources, BGL looks overpriced for an explorer. It has the highest EV to Resource ratio of all the explorers on my tracking list, bar one. The only reason one company is higher is because its declared resource is very low but that is not the case for BGL
The over valuation is a consequence of the SP and the number of shares and not the ore in the ground, its high grade, nor the modern exploration techniques being applied. The resource would need to increase 2.4 times to match the valuation of DEG, another highly valued explorer to which I have assigned a nominative resource of 8.2 Moz on the basis of the Hemi discovery.
The market seems to be in love with BGL's high grade but without a PFS, everyone is guessing at the likely AISC and production level.
I hold a residual holding after selling down following the very sought after SPP in August.
BGL - Share Price forecast and results, page-227
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Last
$2.03 |
Change
0.030(1.50%) |
Mkt cap ! $2.390B | |||
| Open | High | Low | Value | Volume |
| $2.03 | $2.06 | $2.01 | $7.893M | 3.882M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 178236 | $2.02 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.04 | 77587 | 9 |
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| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| BGL (ASX) Chart |