bionerd schreef op 2 januari 2021 09:21:
$baru.v - Baru Gold - Junior gold producer
$30m market cap, +700% off March lows, golden cross to the upside is within reach
Previously East Asia Minerals, lots of doubts about the story, but throughout the year the company raised funds, got the AMDAL completed and now into construction. While still waiting for the production permit to be formally issued, construction of the leach pad, land acquisition, hiring of people, purchasing of supplies/materials are ongoing. Based on these events, there is no delay due to the production permit issuance, and there is a high trust factor that the permit issuance is not an "if" but "when" scenario. The company is building 2 leach pads, focusing on 1000 oz of gold production per month at start, and up to 4000 oz of gold per month. At 1000 oz per month production, and at $1900/oz spot and $700/oz cost, that's $1.2m revenue per month for the company or $14.4m per year. At 177m shares OS, that's $0.08/share gross profit. Trading at $0.16 is 2x that factor. As the company ups to 4000 oz/month, that's $0.32/share gross profit. If we kept the current market valuation of 2x, that's $0.64/share gross profit. On top as with $moon.v, there is a second property call Miwah with 3.14m oz gold and 10m oz silver. These are not in the books yet and when they are, it's an instant value to the upside for BARU shareholders. Note, both the current and Miwah property is 10% drilled. The company will drill both properties with the free cash flow. Thus $0.64/share is super conservative, yet +300% already.