Thanks Eric for trying to bring some order into the thread. I was away from the Thursday of the JV announcement until the Sunday after Thanksgiving. Anyway, when I opened up SI, there were 530 new messages. Since I had basically already put the pain of the "slice of the price", I really had an enjoyable time reading the rumble that took place in the thread. Funny, the first few messages were on the lines of "YIPPEE", "this stock is going to skyrocket", and "WOW, what a deal". Then one lone sole appeared, "Paul Body", and he questioned the warrants and stated his disagreement with the structuring of the deal.
Anyway, after the stock came tumbling down, the naysayers and guys who "knew this was coming" appeared...which opened up full riots.
That is why I started posting regularly; because people need to calm down a bit. Just talk about the mining and give opinions to the possible movement of the stock price. This isn't INTC or LSI or MOT, companies researching technology for the 22nd and 23rd centuries. They have a bunch of guys with no teeth digging into the ground. Now from what I have read they are experienced guys who enjoy howling at the full moon and singing show tunes as they work. If they pull out gold, then we start are calculations. Until then, we can conjecture...so here goes;
MY INPUT INTO ERIC'S ???'s
How many ounces/ reserves are you predicting.
-Based on what? RUMOR
Cost per ounce? low end $150, probably closer to $250 if they roll into big time production.
Life of mine? at least 3 years of digging into 9 different mines
Then place a value on BCMD, based on the math from:
revenue splits,---> I hope they pull out enough so as Sterling is excited enough to exercise their warrants, so my vote is for 49%.
average price of gold--->hoping to see $340 by summer if the market tumbles, which it is about to according to analysts more inclined than myself. Remember, the first sign of the bear market is huge rises based on false illusions of an infinite bull run. LOOK AT YESTERDAY; up 180 dow points based on what...the Japanese minister promising to bail out it's economy since it is collapsing! JAPAN people, who's left to support the Asian economy? North Korea? I digress
number of shares---> I'm reading 45,000,000. I've heard lots of different #'s. But lets say 60,000,000 after warrants and PP's.
SO... 200,000 ozs. (this is just gold in the mine they are concntrating on now. This doesn't include the other 8 mines or DIAMONDS. Do any other mining companies in the US, including majors, have diamonds? Does BCMD?!?)
200,000 ozs X 300 $/oz =
$60,000,000 - (200,000 ozs. X $150 cost/oz) =
$30,000,000 profit / 60,000,000 shares =
50 cents a share x 15 multiple = $7.50 share
OKAY EVERYONE---> go crazy. Rip my #'s shreds. Trust me, I won't be angry. I don't even know you for God sakes. I don't care. I will not send a rude post back out you and get a warm fuzzy feeling inside.
BTW, I used the current price of gold, the cost the company claiming (clearly low), and a relatively low multiple for a profitable mine with 8 other unchartered mines and possible diamonds.
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