rogerdat, first up, I do have a little parcel in QBL. Hence I am interested for the price to go up. What I would like to bring in here is an attempt of a neutral/objective point of view (as far this is possible) though.
The way I see it is that QBL is a small exploration company with a kitty larger than the MC. But it is in the nature of an exploration company that there is: 1) no revenue or significant income (apart from than CR) 2) in order to prove up reserves, (big) money has to be spent on exploration. Thus the money in the bank account at the moment is only worth what they find in ground in the future
While I might not have the complete picture (happy if someone can enlighten me), my attempt to forecast where QBL stands by Year End:
4.6 MM Balance as at 30 Sep-13 - 0.6 MM Dec-13 Q spend - 0.6 MM Mar-14 Q spend - 0.6 MM Jun-14 Q spend - 0.75 MM Jun-14 Payment to Regius for 35 % - 0.6 MM Sep-14 Q spend - 0.6 MM Dec-14 Q spend = 0.85 MM Balance as at 31 Dec-14
The 0.6 MM quarterly spend is taken from the Sep quarterly report. It does not contain much money for exploration. So in case QBL intends to do drilling or the like, then the spend is likely to be higher (or alternatively comes with dilution).
Other pieces I find important to note: - in case QBL is to enter in Option 2 with Regius, another 1.2 MM has to be spent from Mid 2014 to YE 2015 - Regius seems to owe significant moneys for some of their licenses. I suspect that QBL will have to contribute their share of the payments? - in the last quarterly report it is mentioned that the Gold projects are up for divestment or farmout. I must assume that this didn't become any easier with the recent gold price
With respect to the Tenements value, where do you see the value of 10 MM? I am not saying it isn't worth that much, I am just wondering how you derived that amount?
QBL Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
