The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Remember MM's have a habit of dropping the price sometimes to capture stop losses - just saying
Thanks Skier - some interesting stats - do you mind me asking what the PE ration comes from please? It's not a number I have seen before.
I posted yesterday some potential numbers.....Worth checking BMV presentation slide on X - targeting initial production at 25K osz AU and rising to 60K oz. If AISC remains in the ball park of 630 per oz (round up to say 800 for inflation) - and POG say 2300 - or 1500 profit per oz - multiplied by 25K = 37.5M USD - our 40% = 15M. Hugely rounded figures I know but that is just the start.
I think its too optimistic to think we will be at 25K oz run rate in 12 months but I do agree with your comments about can do - so who knows! The first doors to open are the permissions and lets see how the local investor gets on with these - if opened in quick fashion I think we can be confident of further rapid progression.
ATB
Agree with you Gordonbennett for short term price expectation (short term being 6 to 9 months in my view) and you only have to look at where the SP has historically been - I have always believed in the potential but as my posting history will show I was frustrated with a lack of progress and I think that Aidan's interview was refreshing as it incorporated an acknowledgment that they needed local expertise on board to help navigate local bureaucracy. The fact that they are also bringing cash to the table and avoiding dilution for us shareholders is fantastic and retaining 40% on a free carry is outstanding in my view.
I would encourage any potential investor to obviously do their research and consider the numbers here. Theres also the prospect of further good news on the horizon with a similar deal structure for Kochang - if announced that will give momentum here a further tap.
The key now for BMV is to keep the news flow coming and build back sentiment as well. Certainly the SP rise yesterday will have alerted new prospective investors to our very existence.
ATB
Hi Skier - I certainly think it has the potential to get to 10p - £71M MCAP and maybe more once production ramp up on all mines - a number of years away I suggest. In the meantime I think we need a clear and confirmed pathway to reopen - i.e. all the permissions required etc in stages 1 & 2 - once we have these in place there should be little to stop this train hopefully.
In the short term though I am certainly expecting further SP appreciation given our incredibly low MCAP but historical lack of progress might be a drag factor until we get more positive news. I am trying to be realistic and manage my own expectations - I have been here a while and can be patient for a while longer for the big returns.
ATB
That would be nice but highly unlikely. Let’s keep grounded and not fall into unrealistic hype and ramping. The risk reward potential is staggering at these levels and certainly could bag in the next week or so as word spreads. Good to see Aidan give a balanced interview and not be drawn on timescales- let’s see how fast the local investor unlocks the doors to take this to production. The excellent news is that once they are open we are reopening an existing mine and timeline to production should be short in mining terms. Amazing experience in the team of doing just this. Interesting to see what happens in the market today but whatever happens I’m very excited after years of waiting for this type of transformational development with BMV. Well done to the team.
That would be nice but as likely as Santa giving me double presents.
Good interview- more new in the near term it seems and AB cautious about timelines - good - let the locals crack on with it.
Worth keeping your eye on the fundamentals and not the short term SP movements, even though its been a joy to watch so far today - remember that games can and will be played with your mind and your money here if you are not careful.
ATB
Have a look at the experience within the team:
https://bluebirdmv.com/corporate/
We may be on a free carry but they will be still heavily involved in all aspects of the project and charging for their time!
And we will welcome them Gordonbennett - in my personal opinion there is a lot of money to be made here but would encourage everyone to research fully and don't let my enthusiasm have any bearing - as with any other investment DYOR!!
Is that a fact Greg?
Where is your intel coming from please?
I remember when we went for days without a trade - those days are well and truly gone!
Perhaps just being walked up slowly at this point? Time will tell as always.
I would add that even with the current spread, I think that the SP versus potential makes any short term spread a mute point unless you are day trading.
I wonder whether the early bird is now looking to swallow the worm and they are working on a large sell order? Hopefully not!
And lets face it - a 4 bagger has a nice ring to it from these levels but with BMV you do need to learn patience - this will not happen over night - but 50% in a day is a good start :-)
Entirely feasible looking forward - that would only be £35M MCAP
Bobat - its been like that for much of the morning and certainly on opening when they were clearly filling those 2 large buy orders.
Worth reading the RNS few times - as jyee highlighted below they are also evaluating a similar agreement for Kochang - if its the same backer and similar terms (free carry) can you imagine the further impact on the SP!
In your research you will note that this is about restarting disused mines - its what the BoD are expert in - no big long lead in. Worth checking BMV presentation slide on X - targeting initial production at 25K osz AU and rising to 60K oz. If AISC remains in the ball park of 630 per oz (round up to say 800 for inflation) - and POG say 2300 - or 1500 profit per oz - multiplied by 25K = 37.5M USD - our 40% = 15M. Hugely rounded figures I know but that is just the start.
Maybe or it might take a few days - people sometimes get spooked at large % increases bt frankly if they do their research, the only reason the % are great at the moment, is that the SP fell to such low levels and for understandable reasons given the lack of progress. Clearly progress was being made in the background though - we just didn't know it!
Transformational news today frankly but don't take my word for it - DYOR
A few of us have been here for years waiting patiently for just such news - now we are on the leader boards BMV's existence will become wider known.
The risk / reward potential is amazing with, at the risk of repeating myself - a free carry.