Balmoral Resources Ltd BALMF

BAR worth $50 million or $0.36/share

[djb]

So here is my take.

First I am long between $.66 and $0.70 so I am offside.

Why I think BAR is worth $50 million.

The company has 138.5 million shares out standin/$.36 = $50 million, and so far they have drilled a bunch of holes and have failed to come up with a rescource report.

So that money is spent and one could try and capitalize the money spent and add it to the balance sheetas an asset. You would want the maximize this value as a director of the company, you would want to minimize this if you wanted to buy the company, so it is best to minimize it.

In reality the holes drilled have give some indicatiion gold is there but no estimate in a resource. So really it is just a Swiss cheese property of which there are thousands of properties out there with holes in the ground and some sort of gold showing.

I attribute $40 million of their value strictly on the fact that they have a large property in a friendly jurisdiction with several majors around them, we call call that having the right postal code.

Another $10 million can be added to cash in the bank from the latest PP.


Given the fact that BAR management decided that their stock was only worth $.058 in the PP (and one usually does PP's at a premium) so lets say there was a 20% premium to the $0.58 PP that would value the stock at $0.46 which is in about where we traded today.

BAR headlines sreamed "delivers strongest results to date" which when I read them they seemed okay? and if that is your best then the other 42 holes are indicating that they are not the strongest. (Companies always put the best news out first).

So here we are $0.465 print today, I called a $.045 print back on September 27th.

I think the low going into tax loss will be $0.36/share plus a "OMG this is cheap premium" of $0.06/share for a low of $0.42 between now and December 31.

Want I want to see from the drilling is a minimum of 50 metres of 1-2g/t on multiple holes then the market will get excited.

I will throw a stink bid in low $0.40's and high $0.30's and see how this stock plays out.

I think management has had some ideas of what was coming out of the ground( by visual core)  and that is why the opted to take the cash down here.

Next drill program will not be until Q1 of 2018 so there is real  no reason to rush into this stock for another 2-3 months.

These are just a few of my opinions, the chart is in a definite downtrend and a few double bottoms will have to be charted to know if the downward direction can be broken.

If you read this diatribe and feel like sounding off please feel free.