Where BSR's share price may go is anyone's guess but I feel it...

Where BSR's share price may go is anyone's guess but I feel it will not move significantly upwards until production starts and revenue from gold sales are reported. I have prepared some basic analysis sheets converted to AUS$ using the terms of the exploitation permit, the updated feasibility study 6/9/2017,terms of finance, a 75 cent exchange rate and allowed $2 Mil AUS dollars for additional Bassari Resources homeland expenses. I also have taken into account that Bassari is entitled under the permit terms to recoup exploration expenses from the mine's net revenues before any profit distributions to the joint ventures (40 Mill USD) which occurs over the 1st 3 years of production. Any profit distribution (not royalties) will first occur in year 3 of the mine's production life of 3.4 years. It has also been hinted that by this stage Bassari will have increased it's interest from the present 63% to 90% at WATIC's loss (unsubstantiated claim at this time). I have also used the total number of issued shares as including a full subscription of the latest option offer having been taken up. By my calcs since listing, 2,250,471,272 shares will have been issued, raising some $76,471,000,000 at an average price of 3.4 cents.

I have spread production of the first 4 pits evenly over the 3.4 years of the mines life to produce the 174,375 ounces of gold bullion. 1,020,000 tonnes of dirt at 300,000 tonnes p.a to be processed giving 5.3173 g/t or .171 ounces/t total revenue $297,000,000 AUS$.

From all this I have come up with estimates of Bassari's net revenues before taxes all AUS$ (likely to have none or little exposure give carried forward losses and unclaimed exploration costs) Year 1 $16.86 million, EPS $0.0075,return on paid up capital (RPC) stated above 22.5%, Year 2 $22.67 million, EPS $0.0101, RPC 29.65%.

Year 3 and part year 4 depends on the share 63% or 90% so 2 possible outcomes. 63% - Year 3 $20.83 million, EPS .$0.0093, RPC 27.24% Year 4 (4.8 months) $ 6.88 Million, EPS $0.0012, RPC 22.5%. AT 90% Year 3 $26.42 million, EPS .$0.0117, RPC 34.55%Year 4 $10.18 million, EPS $00045, RPC 33.27%

Over the life of the mine I estimate that Bassari's share of net revenue for the 3.4 years will be at 63% stake $74 million AUS$ less homeland expenses $6.8 million netting $67.2 million, EPS $0.0299, RPC 25.27%. At 90% it will be $89.9 million, netting $76.1 million, EPS $0.0338, RPC 28.61%.

Based on my estimated earnings per share of .0075 cents in the first 12 months and applying a multiple of 10 I estimate the share price will be in the vicinity of 7.5 cents. However, based on expected return over the 3.4 years just from these 4 pits .0299 cents using the same multiple it could be 29.9 cents.

Understanding why the share price is languishing where it is at the moment is anyone's guess and the above estimates are sure to require adjustment and change as none of the variables are set in stone all I can say is I have done my best to analysis the possible results for Bassari from production coming from the first 4 pits with the information I have at hand and I hope may help others in their decision making. Make of it as you will.

I read a report recently that stated the average price paid for gold in the ground via acquisition was $65 USD. Just based on that and only the present reported 1 million ounces, Bassari shares would be worth at least 2.4 cents. The market is the market though it's sentiment can change at any time and for any reason or perception.

I cannot wait for production to start, as I view the return of $40 million of capital over 3 years will greatly assist the company expand it's resources and processing capacity in the short term. It is imperative that we increase the processing rate significantly, as if Bassari was lucky enough to find sites in Makabingui to produce the balance of the 1 million ounces reported ( 825,625 ounces) at the same avg 5.3173 g/t as in the first 4 pits, it would take a further 14.63 years processing at 300,000 tonnes pa. Not to mention the significant potential gold resources to be mined at Makabingui South and Kontoutou based on the latest drilling results. Lifting the processing capacity to 1,000,000 t/pa would greatly increase Bassari's revenues over a lot shorter period. I have no doubt the company has got substantial gold resources both confirmed and indicated.

Who knows one day we also see a Dividend, keep an eye on the share price then.

Wishing all the faithful a Very Merry Christmas and a Happy, Prosperous New Year.

2018 looks like being OURS.