Well, I just do not get the low market cap on this stock. Here we have a company which has progressed a gold deposit to the doorstep of a BFS on a 800000 oz resource with highly prospective tenements, which would lead anyone to think that 1 to 2 m oz is probable. Leaving aside the obvious prospectivity of the iron ore at Brandy Hill, what is the market valuing this near -BFS'd gold deposit at??
There is a recent broker report valuing THR at 37c. This was based on an old resource at Molyhil, and discounts the uranium prospectivity to nil, so one would not be out of order suggesting that 37c is highly conservative. And by the look of the market action the pst week or so, it looks highly likely that 37c will be reached some time soon.
If we take the not so giant leap and ascribe a value on BTV's interest in THR at that 37c, that is worth around $8m to BTV. They have $9m cash. So that leaves $5m for the gold deposit, the infrastructure ($20m replacement cost), the pre-mined copper heaps at Gullewa, and the mountain of work which has gone into transforming Deflector into a mineable deposit.
Why would they be putting up the resolution to consolidate the shares if they were not highly confident about the BFS. The reality is, they would not. Everything points to a highly profitable initial three year mining at Deflector, based around the open pit design.
As I have said, I do not get the market cap. It values the gold at $6/oz. Got me jimmied!
I hold and will continue to hold because I cannot see how true value will not ascribe to this stock at some point. My value is 13c minimum pre consolidation and 65c post consolidation. Just my opinion based on what I see as the realistic and conservative fundamentals. I guess the market currently just does not want to believe in the BFS. That has me perplexed.
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