Bluebird Merchant Ventures Share Discussion Threads

[tsmith2] 30/8/2017 09:51

adit opening and dewatering news next. Look at southern gold release. Some easy cherry pickings coming up. Multibagger potential

[tsmith2] 30/8/2017 09:18

Sharp rise to 4p coming..

[tsmith2] 29/8/2017 09:04

Both gold and copper rising. if the copper trading is given the nod, these will fly but main attraction now firmly gold production at relatively v low capex..

[cool runnings] 22/8/2017 11:07

Some great developments on the ground and also some good updates on the website showing the progress.... v v quickly into production and making money...

[cool runnings] 21/8/2017 11:45

Who is that from Tsmithy?

[tsmith2] 21/8/2017 10:39

Can't be any real slack in stock now. Illiquid so will move swiftly.Particularly like the bit about easy picking pillars..

[cool runnings] 21/8/2017 08:54

Yes seems like retail are nibbling away. Once these go they will fly ..... lots of news to come and serious experts running the mine ...

[tsmith2] 21/8/2017 08:16

good early buying here again.

[tsmith2] 18/8/2017 09:02

At some point in near future sentiment will return to small cap gold stocks and with this being a very probable candidate for very near term low cost production should multibag

[cool runnings] 18/8/2017 08:36

Why would i pump a company with a market cap of 4m that never trades ? Please get up to date with where the company is and maybe we can have a discussion , until then keep shorting or whatever you're doing

[dros1] 17/8/2017 17:15

I am not in the pumping planet you are...

[cool runnings] 17/8/2017 16:32

Dros WTF planet are you on ? You're not even up to date on current events...

[tsmith2] 17/8/2017 14:45

get up to speed on the story...

[dros1] 17/8/2017 13:59

hxxps://www.shareprophets.com/views/28118/bluebird-merchant-ventures-what-are-you-hiding-in-the-interims-oh-oh-dear

29 March

This week’s strategy update from Bluebird Merchant Ventures (BMV) reminded me that I meant to go searching for its interims as it had done that really annoying thing that rubbish companies do in not actually putting the interims in the RNS, but merely putting a link to the website and then it isn’t actually on the website till later. Having finally tracked them down, I now realise why the company wanted to hide them away as they make horrific reading.

Where to start?

I should remind you that this only came to the market (Standard List, obvs) in April 2016 and should have had 12 months funding at that time, although to be fair, it did flag as a risk that it would need more funding after a year. Also, it must be said it hasn’t had the best of luck. When it came to the market, its flagship project was the Batangas gold project in the Philippines and almost immediately, mining projects in that part of the world started to look a bit ropey. It then bigged up its copper concentrates trading opportunity although that had gone a bit quiet since last July.

That’s enough background, let’s have a look at the half-year numbers to 31 December 2016 that one can access HERE.

Batangas write-down – significant write-down in the accounts of the value of the project and plenty of warnings about a potential inability to fund it going forward. This has been superceded to a certain extent by this week’s announcement which states that it is not planning any major expenditure in the Philippines this year due to the uncertainty in the mining sector.

Copper concentrate trading stalled – no real mention of it; one line states that ore trading has been stopped while the mining sector is so unsettled. It does state that it has written off the loan of $205,000 due from its copper concentrate supplier though which doesn’t sound very encouraging. Looks like they generated $50,000 revenue in the year from it though, with a cost of sales of a similar amount – wow!

Wreck of a balance sheet – all the cash has gone. As at 31 December 2016, the cash balance was $25,000 and the net current liability position was $233,000 with a further $590,000 of non-current liabilities.

This week the company announced that it is planning to get involved with two South Korean mines with ASX listed Southern Gold. Great - all it needs is $1 million and A$500,000 to get its 50% share.

So, in summary, it has no real business in the Philippines at the moment, has no cash, its debts are piling up and it now has to find a new load of cash for these new assets. To play safe, it probably needs to raise close to £2 million to get those assets, pay its bills over the next 12 months and sort out its balance sheet.

Its current share price is around 2p valuing the business at £3.8 million. Hmmm, I accept that there is some inherent value in Batangas but I’m not putting much value on it right now. One should remember that its old partner sold it 75% of it in December 2016 for 1.25 million shares in Bluebird and a 1% royalty, a pretty negligible sum. With the copper concentrate trading on hold, what are people actually putting a value on?

Personally, I wouldn’t buy at 1p, particularly as a massive placing is necessary. If you do like the story, just contact the new broker, share price Angel, and get in the placing instead which I assume will be at a significant discount to the current price.

[dros1] 17/8/2017 13:57

this Is pump and dump stock, the company has no cash lot of debt, bought assets for $1m how can you put a value of £5m on it ?

[cool runnings] 17/8/2017 12:57

Plenty of news to come here , totally the wrong price

[tsmith2] 17/8/2017 09:13

solid buying

[tsmith2] 16/8/2017 08:17

quietly. v soon they will sampling pillars.could become an operational mine with v v low capex and v healthy margins v quickly

[tsmith2] 16/8/2017 07:24

v good news.