"halcro, I doubt anyone will pay $70 per ounce today. More like $10 to $25 range, best case IMO. In case you missed news, is bear market in gold equities. Is bear market!!

I didn't miss it, I got clobbered by it.

 

However, the rah rah crowd, because of their reliance on the non-compliant Geoex flight of fancy (and their own sheer stupidity), are determined that because BGM is a world class deposit, the bear market will give them a bye.

Because the same rah-rahers have often ciompared BGM to NGD's Blackwayer, I was exprapolating what NGD had paid on a per share basis back in early 2011 to Richfield's shareholders for an established, attributable gold resource base of 1.8 million ounces indicated and two million inferred in a property with significant exploration potential.

Wxtropaling further, using even $25 per ounce, BGM's projected share price drops drastically:

At 1.8 million, at $25, BGM shareholders get $45 million, divided by 140 million shares, for 32 cents per share (less BGM's debts).

At 3.8 million, at $25, BGM shareholders get $95 million, divided by 140 million shares, for 68 cents per share (less BGM's debts)..

At 4.8 million, at $25, BGM shareholders get $120 million, divided by 140 million shares, for 86 cents per share (less BGM's debts)..

To justify BGM's pre-CTO share price of $1.22, 6.83 million ounces would be required.

 

 

 

In early 2011, NGD bought out RVC, with 1.8 million indicated and two million inferred, at $135 per ounce. With 43 million shares out, shareholders got $10.38 per share.

 

At 1.8 million, at the same $135, BGM shareholders get $243 million, divided by 140 million shares, for $1.73 per share (less BGM's debts).

At 3.8 million, at the same $135, BGM shareholders get $513 million, divided by 140 million shares, for $3.66 per share (less BGM's debts)..

At 4.8 million, at the same $135, BGM shareholders get $648 million, divided by 140 million shares, for $4.63 per share (less BGM's debts)..

 

It's doubtful that anyone would pay $135 an ounce today, so let's rework it using $70. That'd be 1.8 million ounces times $70 divided by 140 million for 90 cents per share.

At 3.8 million times $70 divided by 140 million and its $1.90.

 

At 4.8 million times $70 divided by 140 million and its $2.40

All speculation,  as no one knows what the resource will come in at and only deep-pocketted companies know what they'll pay to a cash-strapped, CTO'd junior for hard-to-estimate, in-the-ground resources. 

 


Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?s=BGM&t=LIST&m=32370032&l=0&pd=0&r=0&msg=3#c2sH7M4QSGLWx7Y2.99

 

Thks, GoldEx.