amacopper - Actually conversion of the loan/notes is at $0.01 /share. This is already more than accounted for in the current market valuation of shares in the expectation that the conversion will go ahead.
MAK may sell their shares, but it wouldn't be likey to be on the retail market which would not easily absorb the large number of shares unless sold in dribs and dabs over a long period. One would expect that they'll wait till gold production is right up and the market sp is well over double their nominal holding, then sell to one or more large investors - but at some discount to the retail market price. You would then expect the retail sp to fall to around the price of the MAK sale and then slowly recover providing gold recovery and profits hold up.
If the gold price holds up (as is generally expected to be the case for some considerable time) and recovery rates increase (also as expected), one can easily envisage cost of production going down below $1000/oz (as it was for a short period in 2009). This would mean a profit of around $700+/oz at current gold prices. If BCD can get production up to say 60,000 oz/yr (as it was in 2009 and this should not be an unrealistic goal), then PROFIT per year would be around $42mil. This far exceeds current market cap. Of course it's too early to say how long this could be sustained but given current reserves and ongoing exploration with some ups and downs the mine could be worth a few hundred million over its projected lifetime...
...so it's a good chance for the sp to go up 3, 4, 5 or more times above current price over the next year.
Also, (speculation) watch for an announcement of sale or farmout of copper prospects within the next few months which may add to the short term bottom line of the company.
BCD Price at posting:
10.8¢ Sentiment: Buy Disclosure: Held
