BSG bolnisi gold nl

Bolnisi Gold (BSG) - my thoughts

  1. 2,218 Posts.
    Bolnisi Gold (BSG) - currently capped at about $27 million. Reasons why I like it:

    Georgian operation should hit its straps in this quarter and (barring any weather or mechanical problems) produce over 25,000 oz gold (BSG share 12,500) at somewhere between USD140-150 per oz. This gives Bolnisi an annualised cashflow of AUD15 million per year. If we get a good June quarter, and gold holds at or above current price, I think we should see another kick in BSG / BSGOA price.

    Very strong cash position. Its cash position in the last quarterly was masked by a high inventory level (AUD17 million) I would estimate maybe 75% of this is bullion or contained gold in the leach pads. I would put Bolnisi's 'effective' cash position at $10 million or so, taking into cash account outflows for Roseby (70%) and Ocampo (60%) projects.

    Georgian operation probably has between three and five years 2 g/t plus ore left and about one further year of production as all gold is recovered from leach pads.

    Ocampo project (10+ years life) should in production in 18 months with around same production stats as Georgia. Capital costs is difficult to tell as production method could either to heap leach or CIL (probably later if gold price goes higher).

    Roseby may well be a company maker. The tonnage at Roseby is very large. Key is confirmation of metallurgy and proving up reserves of ore with high native copper content (so as to allow good recovery through low cost process route).

    Do your own DD and don't rely on me.


    I have interests in Bolnisi.
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