Bluebird Merchant Ventures Share Discussion Threads

[andy] 18/5/2020 11:56

Dream,


"5 - 7 years" for a copper mine? That looks a tad optimistic to me.

[annie1982] 18/5/2020 11:52

I agree and I like the focus on the mines and not the exploration

[andy] 18/5/2020 11:48

cbeadle,


"Interestingly BMV could piggyback onto projects which SAU decide to develop which might be great for BMV as SAU would be getting a possible 50% share of the profits while SAU take the exploration risks"

-------

"could piggyback onto"? Do Southern Gold get a choice in this?

And do you think BMV just take 50% of the profits for free, without buying into the project, and sharing exploration costs?

[devonlad] 18/5/2020 11:33

It's not an exploration project Annie, it is a pre-existing mine that produced a lot of gold but closed during low gold prices. Read up, it is an 'interesting' project, differs from the standard explorers.

[annie1982] 18/5/2020 10:16

As a matter of interest does anyone know how many years it takes for a grass roots exploration project to become a producing mine?

[cbeadle] 18/5/2020 09:52

Andy of course it depends on them extracting value from those other projects because if they explored and found projects that were uneconomical to develop that would mean all the costs on their bottom line. It’s a good point though because if they extract value the other projects are in for free at present. Interestingly BMV could piggyback onto projects which SAU decide to develop which might be great for BMV as SAU would be getting a possible 50% share of the profits while SAU take the exploration risks

[andy] 18/5/2020 09:24

skyship,


Surely the leverage to the gold price would be better achieved by buying Southern Gold directly, rather than MTR? That way you are exposed to 100% of the company.


Either way, good to see the valuation gap closing a bit,finally. It's still absurd given that Southern Gold have multiple other projects to explore, whereas BMV don't, and they are good to go financially.

edit

Southern Gold market cap is now £7,988,458

Bluebird market cap is now £14,100,000


So still quite a valuation gap there.

[skyship] 18/5/2020 08:03

Indeed, SAU makes its breakout. Could also be right to play a few MTR in view of their large SAU buy @ 10c. MTR also has the benefit of an AIM listing...


free stock charts from uk.advfn.com

[rakepat37] 18/5/2020 06:54

Gold is flying at the mo - we could c 1800 this week

[cbeadle] 18/5/2020 06:49

Southern Gold finished 21% up so the value gap with BMV starting to close perhaps

[cbeadle] 16/5/2020 16:05

Andy I should type South Korea! But when BMV get established they would benefit when Korea gets reunited, and North Korea opens up for business. I have a feeling change in Korea and unity will come much more quickly than we might expect.

[andy] 16/5/2020 00:20

cbeadle,


North Korea?


Have you heard good things about Hwasong holiday camp?

[cbeadle] 15/5/2020 22:52

Real interesting points here, like you Skyship I think SAU is under the radar and more undervalued than BMV. I even wonder if there might be merit in BMV buying SAU, or a merger. There could also be room perhaps for a larger gold mining company to participate in a joint venture, facilitating production.
Another interesting point is there is also considerable silver in North Korea so more than just gold production to look forward too

[andy] 15/5/2020 20:14

Dream,


In the current market is was impressive they could raise those funds, IMO.


It gives a degree of confidence in the assets that are jointly held, and hopefully will make it easier for BMV to raise too.

[highly geared] 15/5/2020 13:45

Gold looks to be breaking out to move to all time highs. Once in a generation opportunity here. Just need the funding confirmed and confirm the operational actions to start production in H1 2021.

[skyship] 15/5/2020 13:42

Andy / Cheadle - agree - ASX:SAU really cheap; or perhaps BMV moderately over-valued.

The reason is obvious; and with considerable precedent:

If SAU had an AIM listing it would be trading at twice the current price. It doesn't; so it isn't.

Just take a look at the volume over there - pretty well zilch. Over here we have a load of amateur traders who really just follow the momentum, but know diddly-squat
about analysis, balance sheets, JORC stats etcetcetc. They buy - and the price reflects their interest; but not their knowledge.

Still, their gut interest may prove them right enough to make a good profit; so who am I to criticise - not that I am!

On balance, as the host of this thread - BUY ASX:SAU - at this moment in time they are the best value trade of the two partners.

[cbeadle] 15/5/2020 12:31

Southern Gold will catch up later in a bull market cycle. If they get some discoveries in South Korea and get the benefit of cash flow from the joint ventures they could do really well.

[andy] 15/5/2020 11:10

Skyshio,


Indeed, maintaining the 100% disparity in valuation between the two equal partners.

[skyship] 15/5/2020 10:25

A firmer tone again; also at Southern Gold last night:- 13.5c-14.0c

[rakepat37] 15/5/2020 09:24

Good flying at the mo at 1735... news hopefully around the corner

[johnyee 7] 14/5/2020 14:44

Gold price doing great. Not far off 10yr high