is bab the most undervalued asx gold stock?

The more I look at this, the more I am bemused by it.

BAB has 280m shares, a JORC of 3.4Moz gold on the western limb of an anticline, with impressive potential to repeat those ounces on the eastern limb.

Recently appointed a new stellar cast of managers, and experienced and innovative technical exploration geologists on-the-ground.

BAB is now employing impressive state-of-the-art exploration technologies, both hardware and software.

BAB has (at present) a low grade, high tonnage project with a PFS proposing to process 200,000 oz a year from a standard plant.

Low grade, high tonnage projects are apparently not sexy. For some, the old adage, grade is king, is still their mantra.

It looks however, as if the eastern limb may have the potential for higher grades than the western limb, and this is what BAB will search for to enhance the already 3.4Moz.

A search on the ASX for other gold stocks with 280m shares, displayed some interesting results.

For instance, there are gold companies listed with ~280m shares, less cash, poorer management, and no JORC, that are double the share price of BAB.

For instance, there are gold companies with ~280m shares that also have good management, and 1Moz (ie. they only have one third the JORC resource of BAB), that are 3 times the share price of BAB.

And so on.

It is true that gold stocks have been beaten down, and BAB with the rest of them. Some excellent ones are now having new life breathed into them.

It would seem that gradually the smart investors and funds are identifying the prospective gold stocks and moving from one to the next, so BAB's turn will come.

However, the really smart retail investors are already invested in BAB, especially at this price, while some others of us have averaged down post the GGG merger.

Yet, you still have to ask yourself, is BAB currently the most undervalued quality gold exploration and development stock on the ASX?

Probably, but only time will tell.

Gw

Only time will tell, only time.
(Mike Oldfield - Songs of Distant Earth)