Bluebird Merchant Ventures Share Discussion Threads

[andy] 12/5/2020 11:47

cbeadle,


The gap between the valuations of the equal partners in the project is now more than 100%!


Southern Gold (ASX.SAU) is capitalised at £6,053,837

Bluebird Merchant Ventures is capitalised at £14,830,000.


This is nuts.........

[andy] 11/5/2020 18:24

dreamtwister,


I notice Japan Gold had a recently oversubscribed placing, not too many of those around!

[skyship] 11/5/2020 17:00

Cool runnings - re yr 1744 above - pity that you now seem to be briefing against our partner Southern Gold. Did you really mean to do so? I think you should explain.

Personally BMV has been a very good friend to me; but when I sold stock at 4.3p a couple of weeks back, I reinvested a slug into ASX:SAU based upon this chart.

I originally bought BMV on chart interpretation; and to my mind the SAU chart shows the potential for a good run; especially now the fundamentals seem to support the trade as well:


free stock charts from uk.advfn.com

[andy] 11/5/2020 09:45

dreamtwister,


I never do that!


Yes I keep an eye on MTR, and wonder why they invested into Southern Gold rather than London based Bluebird?


I wonder if they saw the saw value disparity as I do?

[andy] 11/5/2020 09:25

HG,


Maybe I already have? :-)


I cannot recall such a value disparity between two companies owning 50% of the same projects, and yet people are trying to mount an investment case for the company that is one double the price of the other, despite not having their financing on place!


I have a bridge for sale.....

[highly geared] 11/5/2020 09:08

Andy, buy some SAU then!

[andy] 11/5/2020 09:02

annie198211 May '20 - 00:48 - 1742 of 1749

"Southern Gold are spread so thin and will be spending millions on exploration every year or so so there will be continual placings and huge dilution".


You are talking as though Southern Gold are forced to spend millions on their diverse projects every year, rather than it being a choice!

Might it be possible they will use their income from the two joint projects to explore their other projects without any recourse for further dilution?



"I am sticking with Bluebird as if debt financing is done then far more focused and likely to be far less dilution"

Bluebird are the laggard here, they have not yet announced they have completed their portion of the financing, Southern Gold have theirs in the bank and are sat waiting!


Southern Gold, currently have around half the market cap of Bluebird, and both companies have 50% of the same two projects, and yet you see BMV as having the better value?


Some mistake surely?

[cbeadle] 11/5/2020 08:22

Southern Gold have been really focused, strategically towards Korea and ditching the Aussie interests. Admittedly by their very nature in exploration there’s more going on and more risks

[annie1982] 11/5/2020 08:00

I agree that is a real possibility. Exploration companies have endless dilutions

[montynj] 11/5/2020 07:55

Key differences are: exploration needs continuous placings and huge dilution and unlikely to ever pay a dividend and it is better to focus on getting and keeping cashflow for dividends...BMV is not an exploration company...they already have 2 gold mines which are being reopened after being closed since the early '70s when when gold price was at an uneconomic price of $40 to $100. So no exploration costs...

[cool runnings] 11/5/2020 07:34

Exploration companies have continual placings. SAU are not focused and will always continue to be dilution. BMV is solely focussed on its 2 projects, when funding is secured via an non dilutive event then this is a different animal altogether , in my opinion SAU can't keep up with their commitments and will eventually be diluted down on the BMV projects .... SAU have too much going on

[cbeadle] 11/5/2020 06:03

Good point annie1982 . There will be a point when Southern Gold rally but that could be nearer the time when revenues from Gold production are visible. That should fund their exploration well. Debt financing for Bluebird is pretty much nailed on and probably reflected in the price

[annie1982] 11/5/2020 00:48

I think we are faced with a choice. Southern Gold are spread so thin and will be spending millions on exploration every year or so so there will be continual placings and huge dilution. I am sticking with Bluebird as if debt financing is done then far more focused and likely to be far less dilution

[cbeadle] 10/5/2020 23:21

Andy, I think that Southern Gold is better value now. They have other projects but of course the exploration costs, risks and potential rewards with those projects. I would guess that they might consider bringing those projects into 50-50 JVs with BMV. I suppose another possibility might be for the two companies to merge, enabling Southern Gold to benefit from a UK listing.
Also could MTR take an interest also in BMV?

[highly geared] 10/5/2020 19:59

Yes, buy Southern Gold as well. Undervalued

[andy] 10/5/2020 18:03

Dream,


He didn't mention it, but did say first gold pour would be around 9 months after financing arranged and construction started.


He also stated that Southern Gold are fully financed for their part of the project!


So we have:

Southern Gold with a market cap of £8,108,069 Fully financed

And Bluebird with a market cap of £15,140,000 Awaiting finance to be confirmed.


Both companies own 50% of the project, but Southern Gold have other projects in South Korea.


Surely people can see something is amiss here?