BML Chart, page-6

Well Blind Freddy can deduce that the current sell off in gold was engineered to allow the gold cartel one last chance to cover prior to Basel III implementation on June 28th.

Now technically, if BML can close above and stay above 45c then it ushers in a new trading range of 45c to 55c. Todays close on a weekly basis if it is 45.5c or higher would be extremely bullish!

I follow a few analyst that have a few methods of valuing PM stocks etc. One of the methods is value stocks on the gold/silver equivalent basis and the other for those companies that have conducted a feasibility study is to value the company at 40% of the projected NPV @ 5% discount. Using this valuation and noting that BML are using an 8% discount for their NPV and stage 5 drilling is expected to increase the resource, increase the size of the mill etc which should equate to a higher NPV.

So BML have an NPV of $303M @ 8% discount. Using the above formula then fair value for BML would be $120M @ 8% discount or around 80c per share which coincides with its prior high in 2020 on a post consolidation basis. I fully expect BML to trade at this level in 2021 with the caveat that silver and gold continue with their uptrends.