Barkerville Gold Mns Ltd BGMZF

RE:RE:Still trying to figure out.....

[yaponski]

hammer161 wrote:

Rollercoasterblues wrote: ....... We do know that the GOLD AND MASSIVE POTENTIAL to be a 10 bagger and beyond is there.

I don't think any one doubts that there is gold o this project - although exactly how much and how much potential remains is debatable. Unfortunately the current resource and potential do not make it "10 bagger and beyond". The assets is only one side - management and its ability to actually execute its business plan counts for a lot. So far FC and his crew have given investors little reason to be optimistic on this side. There have been (and possibly are still) technical data issues, there are clearly permitting and compliance issues and the company consistently under delivers on timelines and its mining/production goals. Yaponski has probably made the best observation so far - this company should have just stuck with developing the resource and really preparing for the database for due diligence and a takeover. This would have ultimately served shareholders a lot better than the current mining efforts when costs are perhaps as high as they have ever been and gold prices are the lowest in several years. Also there simply is not enough economy of scale in BL to make that much money, even if things go well, and CM is many years from a production scenario if it proves up economically - it still only has a resource report and no serious economic analysis.

Best case scenario for BGM is the return of the heady days of say 2010 when inferred resources were going for over $100 an ounce at times... Today resources are worth considerably less. For valuation sake, I would say BGM is still an explorer since it has not even reached a scoping study point on 95% of its in situ resource, Cow Mountain. Well, using that data point, you can do a quick valuation using TSX average

TSX/TSXv Gold and Silver Equities Statistics

The following table includes TSX/TSXv listed companies with at least 12.5 of their in situ metal values from gold or silver (in US$).

Type of Equity Metric	Producers	Developers	Explorers >5M Oz AuEq	Explorers <5M Oz AuEq
Enterprise Value Per Oz AuEq	$81	$12	$4	$11
Estimated Discovery Cost Per Oz AuEq		$9	$3	$20
Net Working Capital (US$)	$13,051M	$1,434M	$489M	$688M

No spin. Just the TSX stats... so current market says $4 per ounce in situ which at 5M oz is $20M. Sprott is owed $16M, right, so that means Sprott pretty close to owes the whole company if BGM fails to deliver.

TSX/TSXv Gold and Silver Equities Statistics