mcap 11m cash 15m proceeds 10 debt nil

Very little NEWS to discuss re BTV...

Except that when a company has such compelling value, I think that IS news in itself.

So I have been accumulating more. Here's why:

(1) HUGE 'MARGIN OF SAFETY'. For those who are disciples of value investing, the margin of safety here is huge.
- mcap $11.3m at 8.5 cents,
- over $15m cash in the bank, earning interest,
- $10m in receivables owing from the Gullewa sale.
- 2,000,000 ATW shares (worth over $700K)
- option to take ATW shares in lieu of cash if ATW price is over C$1.00.
- Gullewa iron ore tenements
- Over $11m in exploration expenses, to be used to offset tax on Gullewa disposal.

So BTV is still trading at under 75% of their cash position, and under 45% of their NTA.

(2) DIRECTOR PURCHASES - another small purchase by Neil Biddle just recently. Total purchases by all directors ON MARKET in the last 6 months of over $500,000. Almost all of these at prices over 9 cents.

(3) STRATEGIC ADVANTAGE OF CASH IN BEAR MARKET - having cash now, (and looking to buy oversold assets) is of greater value than if the market were booming.

In a bull market, the value (and return) of cash is less. But when so many small miners are so short of cash, AND have such depressed share prices, AND will struggle to raise capital (either on the market, or in the credit-squeezed world of finance), the value of being cashed up is far greater.

(4) AN UNDERSTANDABLE REASON FOR THE CHEAP PRICE. - Opes Prime was previously a substantial shareholder. ANZ inherited the BTV shares, and sold them indiscriminately. This was a once-off event, and has created an anomaly with the BTV share price.

(5) THE 'RISK' OF AN UNCERTAIN DIRECTION. - One of the uncertainties in the minds of investors is the lack of knowledge of WHAT BTV will invest in. I don't know either... However, due to the macro environment, there are MORE CHEAP RESOURCE ASSETS THAN EXPENSIVE ONES, so any purchase is LIKELY to be underpriced. Consider the following scenario:

EVEN IF BTV buys an asset, for say $10m, that is 100% overpriced (it is really only worth $5m), the value equation still has BTV at Cash $5m, receivables/shares $10.7m, and asset $5m, versus mcap of $11.3m.

EVEN if such a bad investment were to happen (again, very unlikely given resource asset prices atm), BTV would still be trading at 55% of its NTA.

Or, to put it another way, BTV would have to make $14.4m worth of value (or 56% of its NTA) DISAPPEAR, AND EVEN THEN would still be trading at its fair value.

And it is more than likely that any resource asset purchase in the short term will be value accretive for BTV, and so will increase the current value of BTV.


But please, DYOR. I am still buying them, but if you don't agree with any of the facts above, THAT REALLY IS OKAY, because I don't want you to buy any, yet. : )

I am off on holidays for a month, so won't be posting for a while. (Best thing to do whilst waiting for the market to catch up with fair value - do nothing.)

Best of luck for those contrarian investors in BTV, especially those who have the courage to buy when others can't see the value.

disclosure: 1,416,000 shares. Still accumulating. Most recent purchase today.