Value of BDC in Production, page-2

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stormer

17,539 Posts.

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22/07/21

19:16

Post #: 54702198
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Originally posted by Wombat2: ↑

Hi all long suffering shareholders. In the past few days I have been mulling over the catalyst that will restore some sort of value to our investment in BDC. I think it will be a successful raise of the required cash to build the mine. Rob has been saying for the last two years or more that I have enough to go mining for at least 5 years and that was two years ago. We now have significantly more ounces in both Resource and Reserve. which will ensure a very long mine life.

So raising the capital is now paramount to progressing into production and making our shares worth something closer to what we believe they are worth.

But what might that something look like?

Today Northern Star (NST) advised that they are off loading their assets at Kundana for $400M to Evolution Mining (EVN) who have some substantial assets within 8 kms of the Kundana operation.

Below is an excerpt from the NST announcement"

"The purchase price for the Kundana Assets is A$400 million cash. Evolution will be offering employment contracts to and assuming liabilities for all of Northern Star’s transferring employees. In FY21, the Kundana Assets produced 120,943oz. The combined Resource estimate is 2.4Moz, including Reserves of 579,000oz" .

From that snippet of information we can safely say that BDC with over 3,000,000 ozs in resource and over 1,000,000 ozs in Reserve is well placed to deliver excellent value once in production.

Therefore it is safe to assume that once the mining equipment is installed and operational we should be capable of generating enough profit and cash to justify a market cap in excess of $400m.

Why??? ..... well BDC will be operating at over 135,000 oz p.a., our reserve will be 73% larger and our overall resource will be nearly 30% larger.

If BDC achieves a market cap of say $350m when in production it will tower over the current meager BDC market capitalisation of $111m.

All IMHO and this is a very simple approach but may give some shareholders reason to maintain their confidence in a solid future for their investment in BDC.
Cheers W2

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Difference between Jake Klein and Rob Ryan is about as big as WA

BDC Price at posting: 6.3¢ Sentiment: None Disclosure: Held
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0 Great analysis

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