BARU.v - here's the deal on undervaluation1) Baru is in Indonesia, not exactly the safest jurisdiction
2) Baru had a troubled/delayed two years with COVID and SSI preventing them from doing anything
3) Retail investors lack confidence in investor in Baru since it ran from 0.03 to 0.20 upon amdal and production permit
4) Pallisades added to the share price decline by subscribing in at 0.12 and seeing share price at 0.20, what else would they do? They would even sell at a loss just to hold warrants, that's their MO
And now:
1) two local contractors have signed to produce gold
, bearing all costs and giving 30% of the cut
2) production license will be re issued to allow gold production
3) current $11m market cap for eventual 2k oz per month production at 30% cut is $13m per year revenue for baru without really needing to get into their own production
4) with land still available, last PR says more contracts to be announced and they will get into production on their own keeping 100% profits
5) this contractor model has made Archii Indonesia, a listed indo company, with a market cap of $750m CDN, operating in North Sulawezi which is the same grouping of islands that Sangihe is.
6) There is lots of gold there, we just need to mine it. The quicker andore contractors, the more money Baru makes
7) the 30% local company is seeking to be listed on jndo exchange with proceeds likely furthering the capital investment to fuel more revenue
Eventually the market cap and realization that this is a cash flowing junior will give it the proper valuation. Wait for the re valuation or get in to make money once this is at higher valuation?
We are trading at less than expected cash flow currently. At 2k oz per month, we should be at 0.20/share which is 3-4x multiple. I'd we get more contractors to sign on, we should trade even higher. By then we should be catching some big investor eyeballs furthering the share price increase.