Thursday, October 25, 2012

So What's Blackheath Worth Now?

Assuming they get the next property. Ballparking it using the old data suggests a value of $1.20.
This is what they should currently command on the Venture. I would expect the share price to move up to about half of this over the next month or so. What it will take is a bit of confirmation by drilling and some ground studies. Normally the JB method gives us an acceptable valuation but in the current risk off market we are not seeing it.

(The often recently quoted method of the late Julius Baring for investors to evaluate a company against its current share price was described as: "Buy up to 10% of the in situ value of a deposit using current metal prices, hold up to 40% and sell above 40% taking no prisoners!")

One advantage BHR.V offers is they are going after deposits that they know have value. They've been there and done that. While Happy Creek HPY.V is turning up stunning results (especially for Canada) their deposit is brand new. Because of this people still feel there is a lot of risk. Not so if you study the enviro and drill results. From an investors point of view BHR will get to market much more assuredly and is therefore a bit safer. To me, both are 2-4 year investments with huge payouts. It's going to be tough deciding how to slice up the risk budget to cover these.

I know some of you are thinking you want pop right away. You get a good feeling from that but the real secret to making huge money is getting in on the ground floor and waiting it out. Both of these companies will offer trading opportunities. BHR more so. I intend to use both so that one can come out on top. I take risks in a sector with few players and few investors because it makes things all the more predictable.


  1. This comment has been removed by the author.

  2. must have been thinking about food (Phelps). Did you mean Fulp ? I have to go batten down the hatches for "Sandy" now.

  3. Anyone interested in this should sign up with Mickey Fulps and read his musing: Mercenary Alert: Prospect Generators Update

  4. Yes, Fulps. You'd think I would get the spelling right. lol

  5. You just have to keep those 'flying fingers' in sync with your brain! One is working ahead of the others, hopped on the next train so to speak. My brain is on standby at the moment...time for some zzzzzzzzzzzzz's

  6. Lol, the funny thing is I was thinking about supper. I was cooking.