BER's mineralization is so under appreciatedThe trading talk here is interesting but BER's discovery potential is a seriously under-rated "game-changer" in my opinion. I can't make a direct comparison to Brush Wellman at this time because BW has been around for 90 years and developed into the onlyfully-integrated producer of beryllium, beryllium-containing alloys, andberyllia ceramic in the world. As such, its market cap of $674 million is the result of much more than just mining. But a brief comparison of BW and BER's mineralization is an interesting starting point for a valuation that far surpasses anything I have ever seen elsewhere.
If BER is right, and the aerials and drilling (historical and current) seem to confirm this, in the first few hundred feet of drilling they have hit 2 zones (so far - deeper drill results coming in 3-4 weeks) totaling about 100 ft in thickness, about 250 feet wide, and almost 8000 ft in circular length which equates to 200 million cubic feet of BE ore. Assuming some consistency yet to be demonstrated, and given that a cubic foot of BE ore weighs about 163 lbs, and the company's estimate that its mineralization has a concentration of 0.25%, BER could be sitting on about 81 million lbs of beryllium. There are a lot of assumptions here, so if I discount this potential by 95%, that still leaves BER with close to 4 million lbs of BE metal in the ground worth $500 per lb. This looks like an in situ value of $2 billion. Given BER's market cap of $50 million, its stock might be worth almost 40 times what it is today.
Here's the thing with BW, the mineralization appears to have a concentration similar to BER, but it has only 6 million tons of it spread through a zone 6 to 8 feet thick and therefore limited to open-pit development. BER is showing results in depth. With a permit allowing BER to drill down to 2000 feet, they have the potential of finding several zones which will magnify the valuation above.
If these assumptions are fair, Warm Springs might be better known as "Hot" Springs and BER should have a lot of fanatic shareholders. BER clearly owns a potentially world class deposit capable of changing the global supply/demand equation with the opportunity to introduce BE into applications for which it is currently too expensive. I'm suggesting BER is a 40-bagger based on in situ value, what do you think it might be worth if it developed, at least to a 43-101 standard, and someone attached a market premium to it.
Bottom line: raise some money, get several rigs on the property, let's get this into play.