RE:[Ask Yourself]boss_waz wrote: How will the following information as it becomes available impact the valuation and price of BGM:
- steady release of QAQC COW cores...?
- update on COW pea...?
- island trench results...?
- island drilling results...?
- production of the 16ktons from QR mine...?
- production from 73k 2013 and 73k tons 2014 BL ore...?
and not to leave out
- a new resource estimate...?
Ask yourself...and then take action based upon your answer....
Boss,
You ask some difficult questions. For example, production from 73K 2013 and 73k tons 2014 BL ore? Well, not quite sure what you are driving at but was there any production in 2013 beyond the 30 oz poured earlier this year?
The far bigger question is what will the POG do in 2014. If we get to new highs then BGM easily will bust its $1.67 high from 2011. But if POG hits $1000 then sub 10 cents could be the new reality in 12 months from now.
Of course the most important question is that of permitting for Cow Mountain. Now I believe that BGM does not have any permits for a Cow Mountain open pit mine. I would also argue that BGM will have similar problems to New Prosperity if they try go for an open pit mining permit to access the 1M oz Indicated and 4M oz Inferred. This is T'Silhoqt'in land claim territory so they do have to be consulted. Why do you think 1st nations will go easy on Cow Mountian open pit operations, that is up a mountain from the same streams that flow past New Prosperity? It is illogical IMO to expect an easy approval process -- time frames could easily run 5 to 10 years.
Finally you have to ask your self how many $$s BGM would burn over the next 10 years while pursing mining permiting, mining financing, etc.? Don't forget to factor in the extra cost for Sean who got a very nice bump in salary earlier this year and also the 5 or is it 6 full time IR people.
Just saying the path to exploitation of the Cow Mountain resource is so very long and so very hard. And without the Cow Mountain resource BGM isn't a very interesting company -- sure it could produce 10K oz per year for a few years but I doubt it could be done profitably by any team.
And the final, final, you have to ask yourself is why this time will be different? Didn't BGM promise 50K oz per year production a few years ago when gold was over $1600. Why do you expect production promises / current expectations to magically work out this time? What is differnt about the team that will magically turn BGM into a solid little producer?