RE:RE:RE:[Ask Yourself]
Now, question for you...how will a share price of .10c change any of this....why are you not calling for a price of $0...so given your scenario, at .10c, what would the plan be to get cow up and running?
Boss,
IMO a share price below 10 cents, for current facts, is my take on a fair price based on comparables in the market. Cow Mountain has 1M oz Indicated and 4M oz of Inferred which has a certain value. Just look at Pebble in Alaska. The gold senior pulled the plug on the project after spending close to $1B after the permitting risks because too difficult to bear. Yet the comapny holding Pebble has some value so obviously gold in the ground always has some value, but not necessariy very much depending on permitting, economics, etc, etc.
I don't have a scenario for Cow Mountain getting to production. But I can still assign an intrensic value to the gold in the ground just like the market assigns some value to Pebble which I believe is currently about $1.40 per ounce. So, 5M oz at Cow using $1.40 is $5.9M and 100M shares puts the price in at sub 5 cents, my buy point for current BGM. Wil price get there? No idea, but if gold bear runs another year, I expect odds are pretty good I'll hit my 2 cent to 5 cent buy target. At 10 cents, too expensive IMO, for the current gold market.
BL permits are not interesting but the real story is how many ounces of gold were produced in the last quarter / last year and at what price based on top line revenue, bottom line net and ounces produced. Forget about all the other accounting entries and tweecks. If you apply my top line / bottom line / ounces produced test you will very quickly see who is making money.
The non Cow Mountain resources held by BGM are less than 400K ounces so really those aren't enough to interest anyone other than a small time micro producer. But BGM has proven year after year than it can not turn a profit mining those deposits so Cow Mountain is the only play in the Cariboo IMO. So why would that change, expecially in a falling gold market.
The PEA is the most intesting document I expect since it will scope out what needs to be permited as well as providing some economic analysis.
Regarding raising funds, I fail to see why you continue to bring up the BL permits since BGM has never once turned a profit mining BL. Why will that change, especially in a falling gold market? I don't see your logic. So, raising money will require IMO further dilution of epic proportions. Existing investors at 100 cents, 70 cents, 50 cents and 40 cents will very likely be effectively wiped out. Those entering at 2 cents will survive if their timing is reasonable.