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

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Barneydebear

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25/09/17

05:45

Post #: 27427557
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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.

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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
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