Is BPL undervalued again?

For a company with a MCAP of $3m that settled a $6m+ deal with COB, it looks like BPL might be a tad undervalued. The current situation reminds me of 2017 when BPL was fundamentally undervalued at that time too (the epic run from 2 cents to 17.5 cents was pretty impressive).

Over the last 2 years BPL had a big rise and fall based on its interest in the Thackaringa cobalt project with Cobalt Blue. The deflated cobalt market as well as the dispute with COB caused a lot of pain to the shareprice of this company. No doubt the current capital raising with be weighing on the shareprice too.

But just looking at BPL in light of its rare earth interests (and some selected other rare earth companies and the REMX rare earth index) it looks like BPL is lagging behind. Even early stage projects have received a boost on the whole since around the time BPL entered the rare earth game. However BPL is down around 50% while others are up 10% over the same period.

All you have to do is type "rare earths" into Google news to see what's going on in this space. It's the start of a very big global move to secure rare earths by very big countries and market players.



On the back of an envelope, BPL has $6m+ of settlement cash/assets through its settlement with COB (not to mention the COB net smelter royalty in future and BPL's existing heavy mineral sands projects).

So if we imply the market cap could be $6m-$9m based on the COB settlement, then add a 60% premium for BPL to meet its peers then it looks like a potential short term share price target of 5.7 cents to 8.6 cents? (MCAP $9.6m-$14.4m).