Post by
Ranger56 on Jul 18, 2013 10:22am
Keep your cool and look at....
the numbers and facts. Lets take a look at few. Read the June Presentation on their website and the monthly update for June just released last night. Take note of 1300 Oz of Gold production is their breakeven, and in June almost got there. Also note that they are incresasing their gold production every month so safe to assume by end July will reach the breakeven 1300 oz production and cash burn stops. Also original feasibility economics assumes a $962 gold price.. so still in the money at $1200 Gold. Now the 5 cents share issue no one likes but it provides funding to purchase additional equipment to reach their design capacity of approx 2400 Oz / month. At this level which they expect to acheive next year there will be some very nice positive cash flow. Not to mention there is the Suparna JV and further expansion potential in the plans for BZA that may yield further upside. Net Net things are improving and progressing well at BZA over the last few months and if they continue execute well this will be a nice growth story with good cash flow in the next year. Eric Sprott still believes and owns 12% stake in BZA and I have seen no news that he has sold, assume he is still holding. If you look at a 10 year chart of BZA-- the share price was 1.94 in 2003, 0.02 in Nov/2008, 0.71 in 2011, and now 0.045. So let me suggest that just like 2 cents was a compelling buy in 2008, 4.5 cents might be a compelling buy now coming off a 10 year double bottom.
Comment by
Leafs007 on Jul 18, 2013 11:14am
Good insightful post and optimistic analysis...but you did not address BZA's planned massive dilution (perhaps as much as 300 M). Although in this NR, BZA has alluded to only planned dilution at $5M which makes it about 100M shares (assuming pp at 0.05). Will $5 M be enough or will BZA go back to the well to do more pp? I wouldn't be surprised if they do...