Het there,
I've found my way to this new thread. Looks like more good info here.
I noticed this b.v play earlier, and it seems promising compared to some others. I've been amazed by the wildly positive reaction recently to cbs.v lately (market cap=$17M). They got a lot of mileage from their claims of 231M of .09% MoS2. (So that's really only .054% Moly, and its at depth, not near surface and hence not open pit-able like b.v's deposit. CBS is marginal at best IMO, and people won't stay involved in marginal properties when metals have a bit of a sell off.
I've looked over alot of the bc moly plays. B's market cap is favorable, the float is small, they are under the radar, and they are near surface so they'll get a lot of impact from the new drill program as long as they continue to hit these types of grades. If they hit on 20/20 holes on the last program, chances are they'll add to their results and probably have a better understanding of what to drill for to confirm their model.
Open pit mine Endako is profitable at .069% moly. They recover only 80% or so. But then, the mill they have is paid for. Adanac's Ruby Creek has 113M tonnes (so far) @.066% they plan to recover close to 90% - and the economics seem good as long as their costs aren't a lot higher than planned. Still, even if they are, if B proves up a comparable resource (half the size but at a grade 50% higher) they'll pick up a lot of market interest.
Other comparables that come to mind lately are TTQ.V (market cap= $15M). drilled 198M at .132% moly. this is at depth too, and that's the type of grade you'd like to see at depth - blows CBS.V out a da water. NCV.v had a 40M stretch at .11% (750m deep) and its market cap jumped $5M from prior levels. Their resource is only estimated at 29M tonnes of .09% moly at depth, and they'll only end up owning 40%, but this deposit has sure brought them a lot of perceived value.
I'd prefer to invest in an open pit resource to one at depth, unless the moly grade is so high that the project payback is very quick, like ROK.v. Open pit models are easier to comprehend (for me), and the project can be evaluated against known technical reports like Adanac's.
I'll comment further if anyone asks, but I'd say that if they get similar results again and the overall market has come and gone through a technical correction by then allowing upside again on the markets, this B will double within 9 months, just to bring it in line with the others.
As for their offer of units at .80 with a half warrant at $1, that seems pretty nice for a $1 stock. Flow through at .90 cents? How does that work from a tax point of view again? What are all the related tax credits one receives, and what is the deemed cost base of the shares when they are sold down the road?
H |
