Replies to post #10817 on Brookmount Exploration Inc (BMXI)

[Zardiw]

Yes. Net Assets of the company is $BMXI total value. Divide that by the number of outstanding shares gives you the definition of 'Book Value'.

In theory, Book Value is what each shareholder would get if the company was dissolved or sold for some reason......it's just a theoretical financial value.

Because a public company is owned by her shareholders. Divide her value by the number of shareholders, and that's what each shareholder holds in value...

You can think of it as......say 10 guys go in and buy a house......they fix it up and the value increases. Whatever the total value is then, divided by 10 is what each guy gets when they sell it.

Z

[Zardiw]

And companies usually trade WAY more than Book Value:

So if you take a conservative multiplier of 10.........$BMXI SHOULD be trading around $6.30 .............. Book Value x 10 = .63 x 10.

Amazon $AMZN Book Value for example is $13/Share and they're 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.
$NWBO has NO Book Value (Liabilities are Greater than their Assets) and is trading at .64 and as high as $2 in May.



Z

[Zardiw]

$BMXI - Just the Facts:

$BMXI is a producing Gold Mining company.

1. Net Assets $24M (This is their Assets minus their Liabilities). Their Total Value at present.

2. Outstanding Shares: 38M
Float: 18M
Authorized shares will be 100M per company Tweet.

3. Book Value: .63 (This is their Total Value above, divided by their Outstanding Shares) This is the TRUE VALUE of each share.

Mining stocks trade at a lower multiple than most companies (2X or so)

So the minimum price $BMXI should be at is $1.30/share.

But just for comparison some major companies are listed below.

Amazon $AMZN Book Value for example is $13/Share and they're 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.
$NWBO has NO Book Value (Liabilities are Greater than their Assets) and is trading at .64 and as high as $2 in May.

For $BMXI to trade at 1/3 to 1/2 Book Value makes NO SENSE.....lol.....it's insane....lol. I've been doing this 40+ years and never seen anything like it.

4. $BMXI had a Net PROFIT last Quarter of $2 Million, from their mining operations in Indonesia. This is a 46% Increase from prior year!

5. They just acquired 2 properties in Canada and Alaska, valued at $78 Million and projected to $200 Million. (at $2,000/oz)

"Existing gold reserves have been partially surveyed under 43-101 requirements, resulting in a current estimated total resource of 39,000 oz au. ($78M) Brookmount intends to continue the drill program early next year, to bring the estimated resource to 100,000 oz. ($200M). and has assembled a preliminary budget and plan to bring the project into initial production by later in the year. "

6. Wall Street Journal reports they have Earnings/Share or EPS of .46 last year.
https://www.wsj.com/market-data/quotes/BMXI/financials

Gold companies also trade WAY MORE than the EPS.....

$GOLD has an EPS of $1.42 and is trading at $16.

16 divided by 1.42 is 11 ....that's the multiplier.

$BMXI EPS : .46 x 11 = $5.18/share.........

7. They will uplist to the NYSE MKT Exchange. The PCAOB Audits for this are in the final stages.

Bottom Line:

No matter how you look at it, $BMXI is under valued to the nth degree....lol.....it's ludicrous.....

And the market will make the price inline with the Fundamentals.... Minimum price should be $1.30 to $5.18/share.

Data backing all this up have been posted on the board before. Check the stickies.

Z