Been too busy to follow this through the day. Just catching up now. My last post was to say the pre-open looks good, with pressure building. lol. That turned out to be a major under-statement. What an amazing start to the week!
How far can it go? Well - if the Newminster drill results are good, then we may still be below fair value just on the gold prospects. BAR has been woefully undervalued, when you look at the gold tenements they hold, their debt free situation and royalty flow. A good result at Newminster could easily make them worth the current SP of 6.8 cents.
My other gold miner stock, Ramelius, was at around this level 6 months ago - and is now around 40 cents. RMS is far more advanced with its own gold production, so I'm not suggesting BAR is on a par with RMS today, or could reach RMS production and profitability in 6 months, but the Newminster and Burbanks Main Lode do have the potential to equal current RMS production with further exploration and development (and investment - sure). So 6.8 cents now, just on the gold, may end up looking like a huge, huge bargain a year or two in the future.
Then we come to the Cobalt. I do think a lot of the SP gain over the last week has been about the Cobalt story. Now I don't have a crystal ball, but the predictions of future Cobalt demand are very credible, and I really don't see the Congo meeting that ramp up in demand. So the potential for a major supply shortfall seems high to me - and Mt Thirsty has many very significant advantages as a new supply source. If it all happens - and I think the probability is good - then Mt Thirsty will make BAR worth many times the current SP.
So all in all, although I have a nice profit I could cash in, I'm definitely holding my BAR stock - and I am very very comfortable with that position.
I just can't see any place I would rather put my money right now.
Personal decision of course - and I entirely respect the fact that others may stay away, or sell now if they already hold. Everyone needs to make their own risk/reward assessment. I've certainly made mine....
Best of luck to all readers - buyers, holders and stayers away!
Cheers
Dave
