BMXI Quick D.D
(This should be anywhere inbetween a minimum of $3.15 to $16.50 a share now)
-Market Cap $4.5 million
-Float 12,753,464
-Outstanding Shares 32,533,976
-Total Assets $24.3 million (Net equity 22 million)
-EPS is .21 in the last 4 quarters.
-They recently acquired the Moosehorn project and own 100%. They have a confirmed reserves of 39,000 oz.au with an N43-101.
Need further drilling to update the confirmed 100,000 au from another party, but they suspect the reserves are to be worth 1,000,000 oz.au with further analysis.
So the Moosehorn property may hold up to $1.8 billion in reserves for gold.
-Company is going to uplist on Amex or Nasdaq. They've assembeled 2 of 3 year audits and will complete their 3 year audit by the end of May 2022, which has already passed.
-More acqusitions, drilling and productions have been made and are underway.
-Their price to earnings ratio in the Gold sector for mining companies are at an average of 15x. some of them can go for 40x or more.
With an eps of .21 for the ttm, multiply the p/e of the sectors average of 15x, and that equates to $3.15 a share. That's where they should be trading at the very minimum today.
However it should be worth more imso with the guidance they recently gave with a forward looking basis.
They said theyll be able to produce the initial production run for the Moosehorn project of 4,000 oz.au by the 1st quarter of next year, and full capcity production by next year where they expect to produce 15,000 oz.au. So thats a total of 19,000 oz.au. which equates to $34,200,000. The cost of that for the drilling and production rollout is estimated to be $5.5 million. The cost would be only 15% of the gross revenue.
So their net earnings on that project would be worth $28.7 million for next year. Thats on top of what theyre currently making. Which is currently around $7 million in earnings. That would be a total of $35.7 million. Divide that by their o/s of 32.5 million, and that equals $1.10 earnings per share. Multiple that by the p/e of 15x, and that equals $16.50. Thats a forward looking basis of only 1 year. Some companies go further out to 2,3 or even 5 years away.
But that's just the initial production for the first year at Moosehorn That maybe improved by 2x, 3x, or even more.
Or, you can just include what they're expected to make for the 1st quarter of next year on the Moosehorn project alone. That would be 4,000 ounces of gold which would be $7.2 million. Apply the 15% cost of the revenue, and their net earning would be $6.1 million.
Plus the $8 million in earnings they're expected to make, gives them a total of $14.1 million in total net earnings for 4 quarters. Divide that by the current o/s, and that gives you an eps of .43 a share. Multiply that by a p/e of 15x, and that gives you $6.51 a share. Thats where they should be trading today imso.
But they could be trading at $16.50 with a 1 year forward looking p/e based on what they're expected to make. But they could be making alot more than what theyre expected to make, based o all these other projects they have coming up.
Their Indonesian projects are getting less restrictive with Covid, so the expectations to see more revenue from there are extremely likely imso.
They recently acquired more projects around the Moosehorn property, among have more working projects, acquisitions and partnerships that are underway.
(Another collasal project they planned on purchasing was Macquarie Metals ltd for 100% interest. They own 98% of Vantage Goldfields ltd., which has a total of 4.3 million oz
au. That equates to $7.7 billion worth of gold. The value of that property is worth $300 million, but there is a litgiation going on with Marquairie Metals vs SSC. Only one will have the rights to mine there, so take it for what it is, as that is still up in the air.)
A couple years out where they can generate 3x more than what they're expected to make, this could see $50 a share, or possibly even more.
