Check out your post in January Jakers... Hartley's was giving...

First 25 Last

Share
Profile

Follow
Barneydebear

4,528 Posts.

4

25/09/17

05:45

Post #: 27427557
Share

Originally posted by jakers ↑

0327 GMT [Dow Jones] Hartleys has mixed views about Birimian's (BGS.AU) proposed A$107.5 million sale of its Bougouni lithium deposit in Mali, and knocks the stock rating down to neutral from a speculative buy. Birimian is selling the asset, which contains at least 15.5 million tons of ore at a grade of 1.48% lithium oxide, to China's Shandong Mingrui Group. Hartleys says the deal price was below its preliminary, development valuation of A$0.74/share. Also, there was the potential for the deposit to be higher grade than currently thought. "If we assume the company has to pay 30% tax on the sale (it could be less), then our post-tax cash backing estimate for Birimian is A$0.37/share," the broker says. That's only slightly below Birimian's A$0.43/share price target, hence the neutral call. BGS last traded at A$0.365. ([email protected]; @dwinningWSJ)

They are valuing the company based on this low ball offer. I think after the SS comes out, everyone will rush back into this. Buying now is quite a safe bet, esp considering the sp is below the valuation for the low ball offer. But the more cautious investors may only want to be involved with BGS if there is significant upside confirmed.

Expand

Check out your post in January Jakers... Hartley's was giving BGS a target of 43c way back when we had 15mt resource estimate... How many times does 15 go into 100??? Decide whether that's fair value today (today's SP is at Hartley's target thereabouts). Still trading at a discount...!

BGS Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
15 Upvote

0 Great analysis

Reply

Top Stories

DVP

Develop Global appoints GR to get Woodlawn copper-zinc plant online mid-2025

Week 38 Wrap: US markets panic at 50bp cut; ALS’s minerals revenue slowdown; RBA path unclear

WSR

Westar wraps up field campaign at Mindoolah after divesting non-core assets ahead of 2025

SFR

Sandfire's latest drill run extends known polymetal mineralisation at the Sesmarias Prospect

HVN

Harvey Norman hit with a second class action – and shareholders, once again, don't care

There are more pages in this discussion • 34 more messages in this thread...

First 25 Last

Add FFX (ASX) to my watchlist

Check out your post in January Jakers... Hartley's was giving...

Top Stories

Develop Global appoints GR to get Woodlawn copper-zinc plant online mid-2025

Week 38 Wrap: US markets panic at 50bp cut; ALS’s minerals revenue slowdown; RBA path unclear

Westar wraps up field campaign at Mindoolah after divesting non-core assets ahead of 2025

Sandfire's latest drill run extends known polymetal mineralisation at the Sesmarias Prospect

Harvey Norman hit with a second class action – and shareholders, once again, don't care

Featured News