Very much agree with your post samwiise, the positives surrounding this stock are outweighing the risks considerably in the moment.
It was a strong buy at 1.6 cent before placement notice with the broker at a premium, now it is a confirmed buy due to confidence expressed within that placement.
Whether the broker wants some shares sold immediately will have to be seen in the near future. From personal experience, I would guess that a percentage of 30% of shares to be sold at immediate profit would be the average risk mitigation by the broker prior to drilling results. Those results might not show at first set of drilling the gold resource anticipated here by some.
In the medium term I do expect great resource data to be confirmed as early indicators point to similar resource grades as surrounding mines.
Drilling procedure will continue for quite some time going forward from here and investors can not expect to see blue sky come end of May. We might get lucky this way, but it probably takes a bit longer to prove resource at length and convincingly.
I expect traders to move into the stock mid of May, pushing price higher towards the results of our first row of drillings. As we know, we are now loaded up with cash to be financially secure for many more sets of drilling down the line. This is good financial management of the company and illustrates the forward looking style of our GM.
The fact that he secured a premium within that placement is a fantastic achievement, considering that in recent financial climate most specs need to raise funds at a great discount to convince brokers to commit.
Medium term, I see Randgold to offer a JV and let BGS use its infrastructure and established connections to enable BGS to enter production at a discounted and rapidly accelerated pace.
This year should see continues appreciation in price levels.
Our other drilling campaign could well accelerate progress even more.
BGS Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
