Someone suggested in the last day or two that BRB could treat...

Someone suggested in the last day or two that BRB could treat their ore at Gold Road’s Gruyere plant, it was a good post but can’t find it now so cant acknowledge the poster, but it sort of hit a bit of a nerve with me and prompted this rather long winded reply.

Rome wasn’t built in a day, but probably quicker than BRB can get to mining for some strange reason, despite such an “aggressive” drilling program.

I was in both BRB and GOR in the early days, and going back ten years, both were on an almost identical trajectory for six years to the end of 2018 when they diverged. Similar pricing similar market caps ect.

Goldroad

I bought shares in GOR prior to 2013 but topped up at prices ranging from $0.049 - $0.07 between April & July 2013 when they were close to bringing in the receivers and throwing in the towel, but then they discovered Gruyere in October 2013. This was followed by a maiden JORC within ten months in 2014, followed by a positive PFS completed November 2016. Construction then commenced 2017 with first gold in June 2019. All up less than six years from first discovery to first gold. Quite an achievement for such an ambitious (circa $600 million) project and particularly given that it was in such a remote location.

BRB

BRB had a market cap of just $1.2 million at their low point in 2015. On April 24, 2015 just over 5 million BRB shares were unexpectedly offered for sale at about $0.025, this was a big order for me at the time, but I was one click away from buying the parcel for just $125,000, equating to 10% of BRB (from memory the SOI were 50 million at the time) but unbelievably my phone rang and I missed out by the time I finished with my caller.

The Bombora discovery was made about four months later in August 2015 and they are still drilling to this day. By comparison GOR commenced construction within four years of their discovery and were producing gold in just under six years from discovery.

I continued to buy shares in BRB up until the time they hit $0.80 in July 2017 when BRB were once again similarly priced to GOR but tipped to surpass GOR at the time with the release of their much anticipated resourced upgrade scheduled toward the end of 2017. However the resource upgrade was postponed several times causing the share price to drift down to the mid $0.50’s and when it was finally released in April 2018 and below the (company) hyped expectations, the share price dropped from mid $0.50’s to less than $0.30 within days and despite several CR’s and loads or drilling since then, they still haven’t quite recovered.

In my opinion the big difference between the two companies is that BRB are still drilling whilst GOR have built a circa $600 million plant, producing gold and paying a dividend. I put the difference down to management and fixation on drilling among other things, I could go on but this is another story for another time.

I had sold out of my holding but against my better judgement, more recently tipped my toes back in the water following the introduction of new personnel.

Its good to see an upward move this week but not convinced it will continue although @ANTON707 recent valuation related post https://hotcopper.com.au/posts/60861679/single should give some confidence.

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