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Bear Creek Mining Corp V.BCM

Alternate Symbol(s):  BCEKF | V.BCM.WT

Bear Creek Mining Corporation is a Canada-based precious metals producer. The Company is engaged in the production and sale of gold and silver, as well as other related activities, including exploration and development of precious and base metal properties in Peru and Mexico. The 100% owned Mercedes Gold Mine is located in Sonora, Mexico, approximately 250 kilometers (km) northeast of Hermosillo, Mexico and 300 km south of Tucson, Arizona. The Mercedes property consists of 43 mineral concessions totaling 69,284 hectares. The 100% owned Corani silver-lead-zinc property is located in the district of Corani, province of Carabaya, in the department of Puno in southern Peru. The Corani deposit sits at an elevation of between 4,800 and 5,200 meters above sea level, on the eastern side of the Continental Divide in the Andes Mountains. The project consists of thirteen mineral concessions that form a contiguous block of ground covering approximately 5,500 hectares.


TSXV:BCM - Post by User

Bullboard Posts
Post by tigerseaon Oct 13, 2009 12:29am
657 Views
Post# 16382975

market cap is almost the same to project npv

market cap is almost the same to project npvper stockhouse number, market cap is C$221M
project npv@5% is US$348M or C$361M @1.04C$/U$
I dont think company will be able to borrow at 5%, 8-10% is more realistic, but silver price has gone up so I will just netting these 2 factors out.

capex U$339M, asssume 40% equity, company will need to raise U$135.6M or C$141M @1.04C$/U$. if equity is raise at friday's closing price, market cap will be C$362M after dilution.
so 362M market cap vs 361M project npv, I think BCM's share price is fully priced in.
more risk on the upside than downside at current price.
if you say silver will go up, leverage and buy silver future. the geology, engineering and production risk & reward of this project is priced in imo.
Bullboard Posts