There are many reasons why $BMXI is trading WAY lower than she should be.
I think the main reason is she just fell through the cracks, and not enough people are aware of what's going on with her, and what her true value actually is.
First of all, $BMXI is a Gold Mining stock that had a net profit of $2M last quarter.
They only deal with Producing, or near Production projects. They are not into exploration like other junior mining companies.
1. Book Value.
Book Value is what a company is actually worth per share.
It's the assets (what she owns) minus the liabilities (what she owes) divided by the number of shares the company has.
$BMXI has a total worth of $24M. There's 33M shares outstanding. Divide $24M by 33M and you get .73/share Book Value.
But $BMXI is currently trading at .20, so she's trading at about 1/3 of her actual value! That just doesn't happen in stocks, that's WAY out of wack.
Amazon ( $AMZN ) has a Book Value of $13/share and is trading at $145/share or 11 times Book Value.
Tesla ( $TSLA ) has a Book Value of $36/share and is trading at $920/share, or 25 times Book Value.
There's many companies out there that actually have NO Book Value and are trading at pretty high prices.
$NWBO, a pretty popular stock has a Book Value of MINUS .09. Which basically makes the company worthless.
They owe more than the own. If she went tits up today, shareholders would get NOTHING.
Yet she's trading at .63 currently, and has been as high as $1.91 within the last 200 Days.
Stocks trade at some kind of multiple of Book Value. Amazon is 11 times, Tesla is 25 times.
If $BMXI were trading at say 10 times Book Value, she'd be at $7.30/share.
2. Earnings per share, or EPS.
Companies trade at some kind of multiple of EPS.
EPS is what a company is earning. $BMXI has an EPS of .46/share (From the Wall Street Journal - https://www.wsj.com/market-data/quotes/BMXI/financials )
For a company to trade at roughly 1/2 of her EPS is truly insane and gives new meaning to the term Under Valued...lol
For comparison, Twitter ($TWTR ) has a Negative EPS (-.37 last quarter)... They are actually Losing money, yet they trade at $44/share.
Tesla had an EPS of 2.35 and is trading at $920, or 391 times the EPS!
Amazon had an EPS of Negative .20 and is trading at $145/share.
Microsoft ($MSFT ) has an EPS of 2.24 and is trading at $293/share or 130 times the EPS.
If you put a VERY conservative multiple on the EPS of $BMXI of say 100, share price would be $46/share!
$BMXI just got 2 new properties in Canada and Alaska.
Estimated revenues from those are $300-400 Million.
Production will start this year and go full speed in 2023.
The company is working to uplist to the NYSE MKT exchange and has put a high priority on that goal.
Very few companies actually uplist to a Big Board exchange, but $BMXI has the financials to make that actually happen.
$BMXI is a very fast growing company, and will have a significantly higher value down the road.
All companies start small before they get big. Tesla, Microsoft, Amazon, Google, etc all started small.
Owning shares of $BMXI is like being at the beginning stages of a large company.
How many times have you heard 'If I had bought XXXX in XXXX, I'd be a millionaire now?'
The $BMXI Story:
Interview with the CEO and Errin Kimball the Executive Mining Director:
Shareholder Conference Call:
8-15-22: Brookmount Gold Corp. Finalises Acquisition of Alaska Project
Reno, August 15, 2022. Brookmount Gold Corp, a Nevada incorporated company (OTC
“BMXI”) is pleased to announce that it has finalised the acquisition of the McArthur Creek
property announced in July. The property, located on the Alaska USA side of the Tintina Gold
Belt, is contiguous with the Companys’ Moosehorn property in the Yukon (Canada) and
contains a 250 HA reserve of high quality ore, located in placer and hard rock deposits,
similar to Moosehorn. McArthur Creek, a significant gold bearing water course, is designated
as Kenyon Creek in the Yukon part of the Tintina Gold Belt. The newly acquired property
features direct access from Moosehorn to the Trans Alaska Highway, greatly improving
access for heavy equipment, such as crushers and ball mills, inward to the site, and ore and
ore concentrate outward to refineries situated on the Yukon side of the border.
Further details of progress on both Moosehorn and McArthur Creek will be uploaded to the
company’s website www.brookmountgold.com and social media platforms regularly.
8-3-22: Brookmount Gold Corp. Announces Production Plan for Canadian Gold Project
The company is pleased to confirm that it has now approved a plan whereby site preparation for its Moosehorn property in Yukon, Canada will commence in August, with a view to completing an initial production (bulk sampling) run by the end of December.. Following processing and refining of the initial bulk samples, the Board confirmed that production will be ramped up in the first quarter of 2023 with a view to moving to full production during the year.
In announcing this new initiative in Canada, Nils Ollquist CEO commented: I am pleased to say that efforts, led by our North American Operations team, will see our initial bulk samples from Moosehorn by the end of this year, which is a key milestone for the Company as it will represent the first gold production from our North American platform. It is intended that gold produced from the platform will be refined to the highest level of purity (9999) and, as such, be suitable for use in investment grade items such as bullion and coins. Regular updates of the production progress and strategy will be provided to our shareholders as we move through this exciting phase.
7-20-22: Brookmount Gold Corp. Reports Financial Results
46% Increase in Net Profit for the comparable period in the prior year
43% Increase in Revenue for the comparable period in the prior year
Net Profit of $1.9 million
Revenue $4.6 million
Total Assets increased to $26 million - 18% Increase
Proceeding with the acquisition on the Alaska (US) side of the Tintina Gold Belt
How are they going to use the proceeds from this offering?
USE OF PROCEEDS
The following table illustrates the amount of net proceeds to be received by the Company on the sale of shares by the Company and the intended uses of such proceeds over an approximate 12 month period. It is possible that the Company may not raise the entire $25,000,000 in shares being offered through this Offering Circular. In such case, it will reallocate its use of proceeds as the board of directors deems to be in the best interests of the Company in order to effectuate its business plan. The intended use of proceeds are as follows:
|Capital Sources and Uses|
|Gross Offering Proceeds||$||3,000,000||$||2,250,000||$||1,500,000||$||750,000|
|Offering Costs (1)||$||50,000||$||50,000||$||50,000||$||50,000|
|Use of Net Proceeds:|
|Acquisition of Gold Reserve Area||$||900,000||$||550,000||$||400,000||$||150,000|
|Acquisition of Production Area||$||1,500,000||$||1,200,000||$||900,000||$||500,000|
|Expansion of Business||$||550,000||$||450,000||$||150,000||$||50,000|
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We reserve the right to change the allocation of net proceeds from the offering as unanticipated events or opportunities arise.
The offering of shares by the Selling Security Holder will result in no proceeds to the Company.
What should their stock be valued at after they sell ALL 25,000,000 shares. See "Adjusted net tangible book value per share after offering" below
|(1)||The Company expects to spend approximately $50,000 in expenses relating to this offering, including legal, accounting, travel, printing and other misc.|
|Public offering price per share||$||0.12|
|Net tangible book value per share||$||0.66|
|Change in net tangible book value per share attributable to new investors||$||(0.32||)|
|Adjusted net tangible book value per share after offering||$||0.34|
|Increase per share to new investors in the offering||$||0.22|
The above calculations are based on 17,795,181 common shares issued and outstanding as of December 16, 2021 before adjustments and 42,795,181 common shares to be outstanding after adjustment, assuming the offering complete without additional shares issued, assets acquired or liabilities incurred (but excluding the conversion price of $0.75 that the Selling Security Holder is converting pursuant to a convertible promissory note, in the outstanding principal amount of $420,374 and $48,198 accrued interest, for up to 3,333,333 common shares for sale hereunder).