BARU.v - $1-$2 target | On Production Permit funadmentals Over last month $BARU has seen it's shares range bound $0.12-$0.18. A 50% turnaround is a pretty good trade for any trader in a month. And vice versa, some may have thrown the towel in with the inaction to a higher move given all the talk about production permit, gold pouring, and expectation of much higher prices.
Over past few months, the market had to absorb literally 23m (23,000,000) warrants. That in itself is a big feat for this stock. With delays in production permit and the gold market over last 1-2 weeks weaken, this stock trading about 400k avg volume per day has absorbed 23m warrants. From highs of $0.25 to current $0.15, there is definite support/buyers of the stock.
And now, the final week until the last set of warrants expire Friday the 13th November; the next set of warrant expiry is in May 2021. This is in prefect timing for the following corporate events to occur, and in my opinion, much higher share price:
1) Production permit - could it be this week?
2) Construction - Dec 2020/Jan 2021
3) Gold pour - end Q1 / early Q2 2021
4) Drilling program set for Sanighe
5) Miwah restart
I also hear that the company may look at listing the Indonesia local shares onto Jakarta exchange, thereby giving the company more money to advance their strategy. And they may be building 2 leach pads right at get go vs. one. It may not cost as much to build two vs. one, and the ROI is much greater efficiency.
Macro economics:
- US election is done, providing much clearer direction to the markets
- stimulus spending is not expected to stop with President Biden...more the reason for precious metals to perform well
- COVID cases aren't stlowing, another reason for precious metals to continue moving higher
The market is always forward looking, and more and more market mentions of BARU with targets into the dollars range:
- Mexico Mike: >$1 target: https://forum.mexicomike.ca/viewtopic.php?t=18183
- Patrick Karim TA analysis: >$2 https://youtu.be/RG1rft7kROU
From the Europe Precious Metals Conference, many brokers/analysts weren't aware of BARU being as close to production as we know. Was great to have that presence to inform the investment community, more eyes on the story as the story unfolds.
Indonesia with it's COVID 2nd wave has slowed things down, but it won't be stopped. Once production permit hits the wires, with little additional suppy to suppress the market, and more eyes on the story recently (potentially adding to buying pressure) along with gold prices expected to increase, this could start moving up very nicely as detailed in the TA analysis.
As we get close to the end of 2020, much as gained for EAS/BARU as seen with share price +700% from lows March 2020. I bet 2021 is the real deal banner year with much more upside. Will we see a halt like for Amdal? Hang on to your shares!