BDC market cap is currently c. A$170m for 3000+ koz of JORC (2012) gold resource in the Bardoc area (Nth of KAL) and yet valued at ~A$40-45/oz. Compare with smaller, less developed BRB's Bombora 1000 koz at A$55-60/oz on Lake Roe (just nth of KAL). Then compare these central goldfields plays with the more expensive Pilbara "in fashion" plays:
* (i) KIN-Cardinia project in the Pilbara at ~A$70/oz; & * (ii) CAI-Warrawoona project also in the Pilbara at ~A$75/oz.
So yes, BDC is currently cheap on an EV/JORC oz basis and as its near gas & power and dore' refining infrastructure, I'd expect it might get taken out in 2H2020 (before it reaches FID/first off-take agreement signed (#), either to a mid-cap Australian gold producer (SAR) or a Canadian multi-national as the article suggests. Alternatively, if BDC manage to complete the conc. offtake agreements currently being negotiated, by end 3Q2020, and hence get the Au concentrate sales line-of-site, then I expect they will get the financing support and the CIL Plant will get funded and built by end 2022.
Note: (#) EVN sell in-excess of 100 koz into this conc. market, as its an established market per Indian & Asia (for WA high-grade gold conc.)
BDC Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
