ASX:BLK Blackham Resources reviving old gold mines

Corporate Snapshot

Market Cap (as of 9 March 2015)(fully diluted) 22M
Share Price: $0.12
Cash @ Jan 15 $ 4 M

Type of Co
Mining – Explorer moving to production
Economics

potential mkt cap 44-220M (based on NPAT of $30-50M (using 1,200 USD gold price and 75c AUD and $1100 cost)

What is it worth:

varying views from different brokers/research houses
Paradigm – 173M NPV , 90c-1.35/share @ $1500/oz gold price
BBY – 25c/share
BW equities research – 40c-74c/share NPV $105-186M

In My Honest Opinion:
what they do:
restarting a disused gold mine
4.7Moz @ 3g/t
1.3Mtpa plant producing 100k ounces per annum
10 year mine life
$1.1M Cash + placement 3.0M

SWOT
Strength
low sovereign risk
restarting old plant
Weakness
not much cash

Opportunity
more gold around the area
Exchange rate favourability

Threats/Risks:
finance out of debt ? cheaper for shareholders than Equity

Buy this because…:nearing production, or if Gold price moves up or Aussie Dollar gets worse

Type of Buy: Buy & hold (until in production)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s