Unlocking Value, page-9

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lifeguard22

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31/07/16

10:44

Post #: 18409496
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Originally posted by SuperNinja ↑

Hi all,

I am a experienced commodity capital markets professional.

As someone who has spent the many years researching and investing in commodity stocks there is some serious to be unlocked value in BGS for shareholders.

Commodity research analysts typically only value companies on its primary commodity and then look at secondary commodities from a "credits" into lower production costs.

The issue for BGS is that the lithium and gold deposits are separate and the company is presently only being valued on the lithium.

Depending on the strategic objectives for BGS ~ circa 10 to 15 million of value could be created by moving the gold asset into a new company. The new company would then give all existing BGS shareholders equity in the new company (essentially free shares).

Overall:

1. You would keep your existing shares in BGS (and most likely same valuation).

2. You would get new shares at same % ownership in BGS in a gold company that has a good chance to do a transaction.

Just my thoughts as I like to see people do well and do not think BGS shareholders are getting value for the gold asset.

Now if the company's idea is to sell the asset then a dividend would also be nice

Either way, not saying that BGS should do this. Only that it could be done.

Best of luck,
Super Ninja

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I've read a few of your other posts on other stocks @SuperNinja - Thanks for your measured response and accurate analysis. We appreciate having someone with your experience around.

Your proposal for BGS' gold supply is interesting. What's your thoughts on @BkrDzn's post above? Do you think BGS will swing it's gold assets some time in the future to fund the lithium play? That seems like a logical step.

BGS Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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Unlocking Value, page-9

Top Stories

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