BSG bolnisi gold nl

Bolnisi Gold

  1. 2,218 Posts.
    Thought I'd just mention the BSG quarterly that came out last week. Production at 24,500 oz (50% attributable to BSG) at USD150. Just below the magic 25,000 oz! Given BSG is totally unhedged, this suggests a cashflow to BSG of around AUD3-3.5 million for the quarter (assuming gold sold at average of USD310 and average exchange rate of USD55-56c). This estimate is supported by the comment in the quarterly that 'surplus funds generated by the Quartzite Project are distributed to the partners in the project. During the June 2002 quarter, USD1.5 million was distributed to the Company and the funds were repatriated to Australia'.

    My guesstimate of BSGs cash position is AUD6 million, with a discounted value given to BSGs unrefined gold and gold contained in the leach pads of say another AUD4 million. Taking this AUD10 million (say AUD8 million to be conservative) away from the current mkt cap gives us a 'net' mkt cap of about AUD13 million, approximately equal to its annualised pre-tax cashflow (BSG will probably exhaust the last of its tax losses in the half-year just past, so will probably only modest amount of tax).

    BSGs growth profile will be driven by the Ocampo and Rosby projects. Short term (3-6 months) I think the share price might also be driven by the Director's desire to get the 20c shares in the money by their expiry date at the end of this year.

    Angus

    I hold BSG and have been accumulating
 
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