Hello Claude!
By my count, even including all of the new shares and warrants that are to be issued when the latest PP officialy closes, the fully diluted capital structure for BGL is still only about 45 million shares. Going with the closing price from last week, that equates to a f/d market cap of only $65 million. Unless you have other numbers to work with, I am curious to know why you would consider that to be excessive?
The company has no debt, and nearly $2 million in the treasury. They will be in small scale production within 4 weeks, and will be in position to generate positive cash flow thereafter, so the balance sheet looks healthy.
You refer to the mineral assets potential. I have been to the project and spent two days in historic workings across a strike lenght of several kilometers, where the intensity of alteration and high grade mineralization was more impressive than any other project I have been to see in Mexico. In fact there was one vein that was intercepted by accident as they were completing a cut for a new road, that itself would have qualified as a significant new discovery.
I am troubled that someone with your background and knowledge would consider this kind of story to be hot air. In fact, BGL is one of the most under-promoted juniors on the market, and it is practically unknown by just about every analyst and ignored among the PM investors. That will change shortly, as the company gets up to speed and is able to release the resource estimate and some new exploration data.
We all have our favorites and all of us have different criteria to evaluate the potential of the companies we follow. Perhaps an open mind is the greatest asset any of us can bring to the table, since so many of the top performing juniors did not appear to have much on the table at the earlier stages of their history.
cheers!
COACH247 |
