I've been looking at BGL for a while.
First glance it has a decent jorc
High-grade ore, strip ratio ok, POG around AU$2000/oz, ASIC around $1200/oz? No metallurgic issues (tell me if i missed one) Profit around AU$800/oz
4MT PA mill......
So what's wrong? Why is the SP so poor, the comments here so negative.
Options complaints? I don't think so.
IMO the big issue is the cost of getting into production, the very high CAPEX.
How many new gold mines are springing up even though the POG is sky-high?
Just about none. The big producers are expanding production but new mines are few and far between.
The industry has a clear memory of the last big gold spike when a lot of new mines were started that quickly became unprofitable.
So $200m CAPEX ASIC of AU$1400 with CAPEX costs and the POG slips to AU$1500/oz, or less.
Goodbye BGL
BGL what's right what's wrong?
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Last
$1.30 |
Change
0.035(2.77%) |
Mkt cap ! $1.663B | |||
| Open | High | Low | Value | Volume |
| $1.31 | $1.32 | $1.29 | $7.171M | 5.510M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 12246 | $1.30 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.30 | 87400 | 4 |
View Market Depth
| Last trade - 16.10pm 19/11/2024 (20 minute delay) ? |
| BGL (ASX) Chart |