BSR 0.00% 1.3¢ bassari resources limited

http://hotcopper.com.au/threads/bsr-target-prices.2321144/?post_i...

  1. 13,313 Posts.
    lightbulb Created with Sketch. 3834
    http://hotcopper.com.au/threads/bsr-target-prices.2321144/?post_id=13690091#.U9b3hWOLXEw

    The link above shows how I estimated how much cashflow BSR will be entitled to 100% of, before the JV partner receives anything.
    It also shows how I arrived at a valuation of 4.5c based on the FS NPV and 5.4c after adjusting for spot gold and after allowing for the new shares to be issued. No allowance for the very strong exploration upside. You should have a look into that as well because it offers much more upside potential than a move to 4.5 or 5.4c.
    The FS was based only on 3 small high grade starter pits for 171koz from within the indicated part of the resource (indicated is around one third of the total). As more of the 1milloz resource (at 2.6g/t) moves to indicated, we should expect further pits to be included in the mine plan. Then the Makabingui South deposit which is not yet drilled to jorc shows potential to hold much more than the 1milloz at Makabingui. Makabingui South has been drilled to 400m spacing so needs infill drilling to convert to jorc. It has widespread ore grade intercepts over an 8km zone. This potentially could hold a further 2-3milloz but it certainly shows potential to at the very least double the current mining inventory of just 171koz which might also easily double from within the jorc inferred resource at Makabingui.
    Start doubling or quadrupling the mining inventory and you will see a much higher NPV than the one currently based on just the starter pits which already allows for a valuation of 4.5c or 5.4c at spot gold.
    Last edited by chuk: 29/07/14
 
watchlist Created with Sketch. Add BSR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.