You are asking me to predict the psychology of the market when thinking about this stock
Enthusiasm has ts own momentum, and many of us cannot resist doing what everyone else is doing, no matter. What the merits of the group action is. Depression compounds, everyone is selling so do we, we do not want to be left out, once again no matter what the merits of the lack of faith in the stock may be.
A suggestion The value of a stock should be based upon expected earnings, over the long term.
Mining gold is almost like digging money out of the ground..
Shares in Long standing gold miners with good reserves often sell well above 10 times earnings, some from time to time sell over 20 times earnings.
The gold price is on the rise, and seems as if it is likely to continue rising. Partly because the world trade order is changing, partly because currencies are not the store of wealth that they used to be, partly because of the looming threat of war.
The present value of BSR should reflect the reasonably expected long term earnings attributed to each share.
BSR has about 30 sites in its tenements, that contain gold in good mineable grades and quantities. The 55,000 ounces expected to be produced each year, are coming from just one of those sites.
Small companies explore and find gold. Large companies often take over small companies and usually are the long term miners
I tend to think that BSR if it finds 5 million ounces in reserves, as it may do over the near term, eventually sell at 50 - 50 cents per share.
BSR Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
