let's look at BSR in a realistic positive position!
Asume that whilst they have been waiting for the permit to be granted all planing ,mine design, plant design, necessary equipment has been ordered etc & they are on track to commence operations as soon as the permit is granted.
IMO everything hinges on the Permit & until it is granted nothing can be announced.
How long will this take?
With the EIS completed & the Permit application lodged this will be solely in the hands of the Government !
IMO funding is not a issue, for a project with a NPV of 404% & only requiring US $12 mil & once again even if management has approval in place no announcement can be made until the permit is granted & the lender or lenders has viewed the permit approval conditions.
Management cannot announce who is to be granted the mining contract
Management cannot announce anything until the Permit is approved.
IMO there will be a flood of announcements when approval is received
Now let's fast forward say 2 months
Assume the Permit has been granted. After all the Goverment is pro mining & has promised to fast track the application.
Funding has been obtained
Contractor announced & work has commenced
Lease partner has been bought out & is now 100% BSR leasehold
Plant is ready for commissioning .
To me this is realistic & IMO will be achieved.
IMO at the present SP with all this about to happen BSR represents outstanding opportunity & value
Now let's fast forward say 12 months
Assuming that most things go to plan without too many problems to the negative
Debt has been repaid
Money in the bank
Further infill drilling on Mack 1 has confirmed further good results on open cut
Further infill drilling on Mack 1 has confirmed further good reserves on underground site
Drilling has recommended on Mack South & drill results are confirming the previous very promising much larger resource area which is only 3.5km from the plant.
Do not overlook the fact that BSR has 80km of strike in length & say 4 to 6 km in width with some areas showing very high grade results on very limited drilling.
On the cost per ounce as quoted in the FS of $683 further savings on this figure is almost certain.
At the time of the FS oil prices per barrel were in excess of $100. Now less than $50
Considerable savings are to be made on the running of the plant.
At the time of the FS contracting prices were estimated from existing operations nearby.
IMO with the global downturn in contracting work & contractors competive for work contracts ,a much lower figure IMO will be obtained. Helped also by the lower oil price.
POG at present $1276 per ounce FS was done on $1200 per ounce
With all this in mind IMO I see BSR as outstanding value now & with its prospects for the future a company that may change any shareholders lifestyle
How much is this company share price worth?
Certainly IMO more than. .016
BSR Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held