bmn or dyl?, page-20

Wal

The value of the company is dictated by the Market cap, not the SP

So someone comes along and sees both BMN @ $1.30, & DYL @ .40 ... they rightly see them as being equally good stocks, but they decide to buy DYL based on the fact that it looks the "cheaper", and hence seemingly the "better" buy.

But DYL has a MC of $442 million (1.12 billion shares)
And BMN has a MC of $256 million (196 million shares)

So DYL is currently priced by the market at nearly $200 million more than BMN, even though they have a cheaper SP.

Now while DLY have some fine assets, albeit spread all over the place, and they have a potential company-maker at Incas. BMN already have a company maker & are closing in on the BFS. The BFS alone is worth tens of millions on top of the resource ... This cant be emphasized enough, it is massively undervalued!!

So BMN is actually MUCH cheaper than DYL, for them to be level & have the same value BMN would need to go to around $2.30 to have a MC of $442 mill.

So the market has given a premium to DYL - for management, for the register & PDN, and maybe for being diversified in Namibia & Australia.

But the market has traded BMN down to a discount - for the Savanah litigation, Opes Prime dumping of shares, perceived bad management of the issues.

All of the BMN negatives are out the way. Savanah issue is finished, Nathan Mac & Peter B are no longer on the board, new administrative team headed by a proven Len Jubber, now delivering all the goods.

So while DYL is IMO trading at fair value, with great potential for upside ... BMN is trading at a ridiculous DISCOUNT, with great potential for upside.

As for corporate activity & takeover - DYL is major held by PDN & we will probably see them make some move in the future .. but they will be hard to attract another suitor as PDN have a blocking position. BMN however, is wide open for corporate play, and IMO we will see a move made sooner, rather than later.

As can be seen, both are good - but I use the above to determine which is better value

Hope that helps