BHK
At $0.12, it was a irrational price.
At a gold price of $270.00, the value of BHK is around $0.20.
At a gold price of around $300.00, the value is between $0.25 and $0.30.
They don't have a hedge position. It means that each move of $10.00 US in the price of gold bring more cash flow of around $1,000,000 US in the pockets of BHK on a annual basis (100,000 ounces * $10.00 US = $1,000,000 US).
BHK is a speculative stock but a least you have a penny stock who:
have reserves;
have cash flow;
will show a small earnings for the current year.
Like the other producers, they don't control the price of gold.
At $350.00 US for gold, this stock could be a big winner.
Until then, faites vos prières.
Yours truly,
Gilbert Leblanc
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