This is trading at less than the value of PSC (after today's dilution) which to me is ridiculous.
From an outside perspective I think the board need to decide if their strategy is to sell or move to production ASAP and start seriously moving toward that goal.
BGS have a good resource and they have proven that logistics are tenable. Even if you take a really pessimistic spod price of $550/t long term and use your opex figure of $350/t we are still talking EBITDA of like $100m AUD (or the current MC) over whatever LOM this is drilled out to by the time they reach production.
If management want to take this to mine now is the time to land a big fish BOA with a solid pre-payment (preferably at a premium) to show the market that this is serious and is going to happen. Need to drive the price up to allow favourable debt/equity funding terms and not dilute to buggery which I think should be very doable after the revised PFS and with a BOA in place.
Waiting for a bottom....
BGS Price at posting:
42.0¢ Sentiment: Hold Disclosure: Not Held
