Bayport International Holdings Inc. (BAYP)

[stervc]

doogdilinger (& All), very important...

My sentiments are the same as yours too doogdilinger. Bottom line, now exists the transparency that many investors were wanting from EXTO/Bayport Corporation. Now all investors know the direction of the company’s plans. Their plans are in the best interest of their shareholders. There is much to this plan that is listed within their Information Disclosure Statement below for all to read below:
http://www.otcmarkets.com/financialReportViewer?symbol=EXTO&id=69762

They have clearly explained that they are going to be doing Small Scale Mining Operations through the filing of a reclamation bond where you don't need to go through much of the BLM bureaucracy.

http://www.otcmarkets.com/financialReportViewer?symbol=EXTO&id=69762
In order to commence mining activities at its claim sites, Bayport might need to obtain permits from the US Bureau of Land Management (BLM) depending upon the level of authorization submitted to the BLM. Bayport intends to start a Small Scale Mining Operations through the filing of a reclamation bond. The costs are approximately less than $8,000 to complete per bond. The company can file as many reclamation bonds as it likes. It is important to note, the BLM regulations establish three levels of authorization, (1) casual use, (2) notice level, and (3) plans of operations. Casual use involves minor activity with hand tools, no explosives, and no mechanized earth moving equipment. No permit is required. Notice level activities involve use of explosives and/or earth moving equipment. The total annual unreclaimed surface disturbance must not exceed 5 acres per calendar year per reclamation bond. A plan of operations is required for all other surface disturbance activities greater than 5 acres. A full environmental assessment and reclamation bonding will then be required. See the following link to reference the BLM laws regarding these operations:
http://www.blm.gov/wo/st/en/info/regulations/mining_claims.html

Following is a BLM Flowchart to further assist with understanding the Reclamation Contract completion and submittal process:
https://fs.ogm.utah.gov/pub/MINES/Minerals_Related/FORMS/operatorflowchart0727.pdf

Here's the bottom line for those who might have a little concern about the company’s direction that I believe is extremely positive. Bottom line, the company has positioned itself for huge growth through very non-expensive means. It will cost them less than $8,000 per bond. As long as the company does not disturb more than 5 acres at a time per bond and pulls out of the ground no more than 100,000 tons of earth, they can do as many Small Scale Mining Operations as they like per bond through the reclamation process. To add, as long as the company does not disturb more than 5 acres at a time, neither a plan of operations nor an environmental assessment will be required.

Right now, one of their targets is the WOW claims. It doesn’t matter if you have thousands of claims or just one. The key is to have enough data for one claim with good enough data to venture forward to see what’s there if its potential warrants such. They have this with the WOW Claims. The WOW claims’ potential warrants such. The assay from the WOW Property has confirmed gold existing within the claim in the amount .324 ounces of gold per ton. This assay report for the WOW Claims was done by Advanced Laboratories, Inc. under LAB No. 30255-01. The Test Certificate of the assay report is on the company's website. For inquiring minds wondering about the credibility of Advanced Laboratories, Inc., read the links below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66338366
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68216356

The Test Certificate of the assay report from Advanced Laboratories, Inc. is below on Page 9:
http://bayportcorporation.com/jierna2011/BayportCorporationAssaysGeologicSurvey.pdf

Remember, earlier I mentioned that as long as the company does not disturb more than 5 acres at a time, they can do as many Small Scale Mining Operations as they like per bond through the reclamation process. The WOW claims consist of 120 acres which means that a total of up to 120 ÷ 5 = 24 Small Scale Mining Operations can be done from the WOW claims. With the company not being able to pull no more than 100,000 tons of earth, per reclamation bond, out of the ground per Small Scale Mining Operation, that means that the company can pull 100,000 x 24 = 2,400,000 tons of earth as the maximum retrieval amount for operations that the company could have going on at one time. It’s really much greater than this, but I’ll explain that later.

The price of gold currently is over $1,500 per ounce as confirmed below:
http://www.kitco.com/charts/livegold.html

Now we can calculate a valuation range of what could very possibly exist within the WOW claims from some known variables indicated below:



Known Variables for Deriving a Valuation Range
** WOW claims consist of 120 acres.
** No more than 5 acres per bond per Small Scale Mining Operation.
** Up to 120 ÷ 5 = 24 Small Scale Mining Operations can be done on the WOW claims during one time.
** No more than 100,000 tons of earth can be removed per bond per operation.
** We will consider a conservative rate of 350 tons per day to be pulled out of the ground.
** We will consider… 350 tons per day x 30 days = 10,500 tons of earth per month.
** We will consider… 100,000 tons ÷ 10,500 tons = approximately 9.5 months
** The mining season in Utah is approximately 9 months from Feb to Oct.
** Equipment definitely exists to get 350 tons of earth per day.
** Post below shows equipment existing to get 5,000 tons per day with using multiple machines (only 350 tons needed which is much easier):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66978771
** Gold reported in the amount of .324 ounces per ton.
** Price of gold as of today is over $1,500 per ounce:
http://www.kitco.com/charts/livegold.html
** The multiple of 21.20 is the Industry P/E Ratio for gold stocks:
http://biz.yahoo.com/p/134conameu.html
** The current Outstanding Shares (OS) is 679,216,049 shares, but I will use the worst case scenario max of 850,000,000 shares as the OS to calculate valuations since it is its maxed Authorized Shares (AS) available to use to go one step further for being conservative.
** The company has 100% funding support for maturing the WOW claims; 25% of the Net Profits come to company.



Considering the above variables, it is very clear as to how the company can easily get 100,000 tons of earth out of the ground per bond over a course of approximately 9 months. Keep in mind that the company can have as many bonds as they like going on at the same time, but we’ll come back to that thought later. For now, let’s consider this below to determine a potential valuation that’s easily achievable…

100,000 tons x .324 ounces per ton = 32,400 ounces of gold per bond per 9 months
Or…
32,400 oz ÷ 9 months = 3,800 oz per month

To derive a dollar amount…

$1,500 price of gold x 32,400 oz per bond = $48,600,000 worth of gold per bond 9 months
Or…
$48,600,000 ÷ 9 months = $5,400,000 per month for 9 months

From reading through the company’s filings, the company will only get Net Profits of 25% of what is pulled out of the ground because of not having to account for any of the expenses to sure up the property and fund the Small Scale Mining Operations. So…

$48,600,000 x .25 = $12,150,000 of 100% Net Income per bond (NI) per 9 months
Or…
$12,150,000 ÷ 9 months = $1,350,000 per month for 9 months

Now, to put things into perspective, the two groups of private investors that are funding the Small Scale Mining Operations for the company can do enough reclamation bonds at one time that equates to up to 24 Small Scale Operations going on at the same time. This means below…



From “1” Small Scale Operation per 9 Months:
Net Income (NI) ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

Again, as I had mentioned above, I will use the worst case scenario max of 850,000,000 shares as the OS to calculate valuations since it is its maxed Authorized Shares (AS) available to use to go one step further for being conservative.

$12,150,000 (NI) ÷ 850,000,000 (OS) = .014 EPS

21.20 P/E Ratio for Gold Industry x .014 EPS = .29 per share for share price

***************************************************************************************************************************************

From “24” Small Scale Operations per 9 months:
$12,150,000 (NI) x 24 Small Scale Mining Operations = $291,600,000 Total NI

$291,600,000 (NI) ÷ 850,000,000 (OS) = .343 EPS

21.20 P/E Ratio for Gold Industry x .343 EPS = $7.27 per share for share price

***************************************************************************************************************************************

So in short, from the calculations above, for every Small Scale Mining Operation, it brings an “approximately” “potential” additional .29 per share value per operations added.

Example of Per Share Valuation Per Operation:
1 Small Scale Mining Operation = .29 per share
2 Small Scale Mining Operations = .29 x 2 = .58 per share
3 Small Scale Mining Operations = .29 x 3 = .87 per share
4 Small Scale Mining Operations = .29 x 4 = $1.16 per share
5 Small Scale Mining Operations = .29 x 5 = $1.45 per share
Etc.
Etc.
Etc.

Bottom line, the amount of reclamation bonds and Small Scale Mining Operations done will be based upon how deep are the pockets of the two groups of private investors that will be funding these operations.



This means that if EXTO/Bayport Corporation only decides to do only one Small Scale Mining Operation, the company has the potential to be valued and justified trading in the .29 per share range. If they do the maximum amount of up to 24 Small Scale Mining Operations at one time, then the company has the potential to be valued and justified trading in the $7.27 per share range.

Even if you wanted to play a little game with yourself to create a more conservative scenario and pick some variables above to presume that it is 5 times the amount overstated, you still will come up with EXTO/Bayport Corporation being potentially valued to fundamentally be worth trading within the .058 to $1.45 per share price range. Let’s analyze the magnitude of this thought to go one step further for being yet even more conservative.

What if the grade of .324 ounces of gold turns out to be 5 time less being a mere .0648 ounces of gold per ton?

Or what if the company instead of pulling out of the ground 350 tons of earth per day can only pull out 70 tons of earth per day?

Or what if the price of gold instead of being $1,500 per ounce was 5 times less to be $300 per ounce?

I think those are some very strong “what ifs” for happening, but regardless, if one of them did happen will all others remaining constant as believed, EXTO/Bayport Corporation would still be valued to fundamentally be worth trading within the .058 to $1.45 per share price range. I’m sticking to my original thoughts and believe that EXTO/Bayport Corporation could very easily be valued to fundamentally be worth trading within the .29 to $7.27 per share price range as more is proven for their direction.

The above is nothing more than some thoughts to show how the company’s mining objectives can be very achievable. They have shown the market how serious they are just by filing and being as transparent as they have been. I think now it is important to show the market the next level of being serious by submitting application for the reclamation bond through the BLM. The company understands that the WOW claims assay report was an independent report and that they need to go in there to sure up the claim/location that has the .324 ounces of gold indicated. This is the “X” marks the spot location. Again, I think it is important to note that the company will not have to pay for the reclamation bond, the mining equipment going in, or anything related to the Small Scale Mining Operations.

Something else very important with their mining objectives succeeding will be the logistics of their plans. I will organize a post of what I have learned from doing my due diligence (DD) concerning the logistics of their plans that I think will be very eye opening.

v/r
Sterling