No value added in 7 months. It's clear that the market doesn't believe a mine + plant can be build in Mali. The current value is based on the initial exploration target and that's it.
So for me the only question MGMT has to answer (all 3 of them) is: "how are you going to convince the market that the mine + plant is going to be build?"
Because up until today they failed to convince the market that fast tracking is possible in Mali. You only have to look at the difference in market caps between KDR & BGS to see what I mean. And even more telling is the difference between TAW & BGS. TAW hasn't even released one drill result and has already almost 40M market cap! That is because the market does believe TAW is going to produce if they find enough spodumene.
Both KDR and TAW will have access to refurbished plants. How is BGS going to fast-track building a mine + plant?
The plan for Mali is still unclear. That's why the company is so undervalued.
BTW for me it is clear: a Chinese group of investors will finance and build. And I don't believe for a moment that current MGMT will lead such an operation. That's why resolution 9&10 have been made.
But I'm not the market and unfortunately the market is not convinced. It's up to MGMT to change this and make a financing deal. I expect such a deal no sooner than Q1. So until 2017 the register (read: SP) won't change much IMO.
BGS Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
