The Sun will shine on BAJ againMy prediction:
A. 3 mo from now--things will be settled, the mine will be on tract to go into operation in 2013---note: BAJ has resources to keep pushing forward.
B. Individuals who purchased during this period of market overreaction and divergence from intrinsic value will see huge rewards.
C. Actions by shareholders in the short-term as a result of this over-reaction will lead to non-optimized decisions---I hope the board will allow things to settle, resolve the open additional funding needs and relieve the fears before major leadership decisions are made.
D. A 20% cost over-run is typical in large mining development projects (yes, it may even go higher)---please do not penalize good site management---building a quality mine is their job, trying to minimize cost overruns is too---but if a decision about whether to build a quality mine or assume additional cost growth---ever solid mining company would make a decisions to increase long-term profitability, even if it meant short-term pain. Also, in the real world---firms do not provide premature cost overrun information to the public out-side audited processes----please do not bash BAJ leadership for not communicating externally about the overrun that occurred between audited events (internal communications is another story).
E. BAJ will come out and identify new board members, new sources of funding and as a kicker--- near-term opportunities to increase BAJ intrinsic value such as higher CU % from recent discoveries and manganese benefits.
The stock price over the next 3 mo will shoot past the previous highs
Just my predictions---everyone has one .....or a few.