BTW Joe,
I know it is always frustrating to see no volume on what we think is a undervalued situation. But patience will always reward those who understand what they invest in.
In the meantime, here are a few comments from some canadian analysts made before the current phase III drill program:
"A takeover target price could be in the range of our best-case NAV range of $7.50 per share. We strongly recommend the stock with a target price of $5.00 before confirmation of leach kinetics"
...............Haywood Radar Screen, Jim Mustard, Nov/99
"Looking at Alamo Dorado in terms of gold-equivalent, the project looks to have recoverable reserves of 1.16M ounces with life-of-mine cash costs of $164/oz and life-of-mine capital of $41/oz. If we look at gold-sector acquisitions in this size range, most transactions have taken place at aggregate values in the $215-$275/oz range. Taking $245 as a mid point, this would equate to an acquisition price in the $5.50-$6.00/share range.
...............Deutshce Bank, George Albino, Nov/99
"Our upside case is based on an assumed 30% increase in tonnage...the result is an increase in our 10% NAV from $C4.40 to $5.25" (since that statement, the reserves numbers have increase by 55%)
...............Nesbitt Burns, Steven Butler, Nov/99
"While Corner Bay stock has appreciated considerably, we still feel that the company will present an attractive acquisition target for an expansion-hungry large junior producer, and can be expected to appreciate further even in the current poor environment for exploration stocks"
...............Scotia Capital, Felix Freeman, Ted Reeve, Susan Muir, Nov/99
"More importantly, the internal rate of return is an outstanding 100%, which means that another company could offer a take-over bid for Corner Bay at $6.50 and still make a minimum 18% IRR, which is what is demanded of the senior producers' projects"
...............Canaccord, Andrew Muir, Nov/99
"In our valuation, using a discounted cash flow model, based on current work and industry comparables, we estimate a project IRR of 42%, and NPV (7.5% discount) of C$68.3M...We believe this valuation is conservative and that speculation and exploration or expansion successes could drive the stock price abopve our valuation "
...............Pacific International, Wendell Zerb, Nov/99
"We continue to recommend Corner Bay Minerals for speculators wanting to participate in the exploration and development of a potential silver producer in Mexico. Our target price is currently under review."
...............Yorkton Securities, Doug Leishman, Dec/99
Since the current market cap of BAY is only $30 millions and things have improved significantly since those write-ups, we can only conclude that BAY remains a strong buy. |
