GSA's calculation of BSX value - from June issue.The company says it’s interested in a joint venture (“JV”) and is willing to give up 51% of VG to a construction financer/miner to develop, as it will still have all the potential sites in Sectors 2 through 4. Possible suitors are any large miner already in Brazil, such as Yamana Gold, AngloGold Ashanti, Equinox Gold, and Kinross Gold. GSA thinks any miner willing to put up the $361 mil for 51% to build VG will actually want 100% and take over Belo. On the other hand, a deal that splits off the deposit to a JV partner, with much of the remaining property on the belt remaining with Belo shareholders, might be possible. The table below, prepared by one of the company’s investment bankers, summarizes the attractiveness of Belo’s VG site. Subjecting the more than 450 gold deposits located in the Americas to miners’ typical investment criteria, the list is reduced to just one deposit that’s suitable for acquisition and immediate construction: Volta Grande.
Buy! Based on nearby calculations, Belo is a GSA Top 10 with a rounded-up $5.00 target. Note: This is what Belo is worth, developed and producing in 2024. Buyers don’t pay more than necessary, and we don’t expect $5.00 now, given Belo’s current share price. We will be happy to receive shares from one of the above contenders at a value of more than $2.00 per Belo share.