BULM - Lebeds email...
Lebed.biz Alert - I am extremely confident about BULM!
Call your friends and family members tonight... tell them to write down the symbol BULM and check back to see where it is trading at the end of 2009 compared to where it is now!
I cannot express in words how undervalued I believe BULM is here at $0.80.
BULM is receiving a 1% royalty from Newmont Mining (NEM)'s Leeville/East Ore mine. BULM's 2009 revenues reached $3.725 million with net income of $1.7 million!
BULM has been buying back their own stock. Current shares outstanding are only 38.7 million giving BULM a market cap of just $31 million. This means BULM is trading for only 18 times 2009 net income!
With gold at $1,065 per ounce, if gold prices average a 25% higher price in fiscal year 2010 than fiscal year 2009, common sense says we could potentially see BULM's net income rise to $2.125 million or more this year. NEM currently has a P/E of 39. That same P/E with potential net income of $2.125 million would value BULM with a $83 million market cap or around $2.14 per share.
Therefore, I believe BULM is extremely undervalued just with their 1% royalty on the Leeville/East Ore mine from NEM alone, but there is a tremendous amount of hidden value here that not many people know about.
First of all, BULM believes NEM owes them royalties on a 256 square mile of interest in the renowned Carlin Gold Trend in Northeastern Nevada, surrounding the Leeville/East Ore mine. BULM's lawyers are representing the company on a contingency basis to seek these royalties and the court recently denied NEM's claim that a 1993 Nevada court proceeding and judgment invalidated or adjudicated BULM's additional royalty interest.
BULM recently named Barrick Gold (ABX) as an additional defendent in the lawsuit. While it is impossible the predict the outcome of the proceedings, if BULM is successful it could mean a substantial increase in royalties from NEM.
BULM owns 80% of EnShale, Inc., which has licensed the rights to patent #6,709,573 for extracting oil from shale. EnShale has acquired leases on 4,650 acres of state-owned land in Eastern Utah. Gary Aho, a geologist with significant experience in oil shale and mining, has estimated the oil resource on this land at 666 million barrels.
EnShale has completed fabrication of a pre-production plant and has stockpiled 5,000 tons of oil shale that has been crushed and screened and readied for processing. EnShale's processing plant is designed to produce up to 150 barrels of oil per day at full production. EnShale will be conducting various tests with its demonstration plant to prove out its proprietary process and complete its design.
There are a couple of companies we have profiled in the past with oil shale extraction technology or oil shale leases, and these companies currently have market caps above $50 million. It is my belief that BULM's interest in EnShale is currently receiving almost no valuation at all, but certainly has the potential to add significant valuation to BULM's market cap.
BULM has rights to receive a 3% royalty from NEM's Maggie Creek Property. This property is not yet in production but is adjacent to NEM’s Gold Quarry mine, which is a producing gold mine.
BULM owns a lead, silver and copper property located in Ophir, Utah, and is currently entertaining offers from Kennecott Copper and others to explore it.
BULM owns 1% of Gold Mountain Exploration and Development Company and will be receiving an additional 9% interest shortly. Gold Mountain's main asset is a 50% interest in the Sumpter Oregon gold property which consists of 13 patented mining claims located approximately 10 miles west of Sumpter, and 40 miles southeast of Baker City in Eastern Oregon. During fiscal year 2010, BULM plans to attempt to acquire a larger interest in Gold Mountain.
BULM has a deal with Dourave Brazil and is currently paying them $80,000 per month for 22 months to acquire a 1/3 interest in the Bom Jesus and Bom Jardine mining properties in the State of Para, in Northern Brazil. Dourave Brazil is an extremely capable exploration company with the expertise needed to bring a mine into production.
BULM could be the biggest undiscovered gold gem in the market today!
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Jonathan Lebed
Lebed.biz
Staff
