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BCN - Beacon Minerals

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Today's Announcement from the Beacon boys. Forward Sales contract signed for 9,000 ounces at $2430 per ounce over the next 6 months.

Without grabbing my calculator, that's +$20 million from June-November, guaranteed.

They have been generating an average of around 7,000 ounces per Quarter for the last few Quarters, so,

Assuming $2200 per ounce for the remaining 5,000 ounces we are looking at around $35 million over the next 6 months with around $1,000 AISC so minus $14-15 million

Equals another $20 million net profit into the coffers by the end of November

Last Quarterly we had about +$17 million in cash/gold locked in the safe

By November we will have around $37 million in cash ... Current Market cap = $130 million

I'm no rocket scientist, but this looks undervalued at 3.7 cents. Happy to hold until the Market catches on
 
Some homework for you @barney
Your mission; please report back on the 2 resource estimates mentioned in the announcement.

ASX ANNOUNCEMENT
24 August 2021
BEACON ACQUIRES MACPHERSONS REWARD PROJECT

Beacon Minerals Limited (ASX: BCN) (BCN or the Company) is pleased to announce that it has entered into an agreement with Primary Gold Pty Ltd (Primary Gold) whereby Beacon Mining Pty Ltd (Beacon Mining) is to acquire all of the shares in the capital of Macphersons Reward Pty Ltd (MacPhersons Reward).

Execution and completion of the agreement with Primary Gold occurred simultaneously.

HIGHLIGHTS

 Beacon Mining has acquired a 100% interest in the MacPhersons Reward Project, located 45km
southeast of the Jaurdi Gold Project for a cash consideration of $14.0 million.

 Mineral Resources have previously been declared at four prospects within the MacPhersons Reward Project area.

 21km² of prospective tenements including 6 granted mining leases. There is significant upside for additional discovery.

 Granted mining permits exist over the MacPhersons Reward, A‐Cap and Tycho gold deposits.

 Conceptual open pit mining studies by Primary Gold in 2017 and 2020 delivered positive results based on use of third party toll milling facilities.

 The tenement assets are mine ready, with all the mining permits granted.
 
frugal.rock said:
Some homework for you @barney
Your mission; please report back on the 2 resource estimates mentioned in the announcement.
Click to expand...
No problem Mr. @frugal.rock

Already did a bit of digging earlier. Currently on a laptop so will wait till I get back on the D/top and throw up what I found.

The Ann aside, it seems BCN is still in the slow mover category with rank and file Punters.

I still believe it will have its day in the sun.

I have a top up order in the queue at 034 with the above in mind
 
The boys were fairly brief on details in today's Announcement @frugal.rock

However the recent 2017 Resource assessment and Pre-Feasibility study of the Projects looked pretty robust even at $1600 Gold price

These boys don't generally sit idle so I expect another resource upgrade definition within a few months

Bottom line the Project/s are mine ready and permitted with a small proven resource

They can roll the trucks in and pick up the current over burden from the old diggings and run it through their current mill

Probably pick up a couple of $ million while they prepare the sites for the next phase, lol.

MacPhersons Deposit:

The MacPhersons Deposit (incorporating the A-Cap area) consists of 2.5Mt at 1.79g/t for 144,800oz of gold, mainly in the Measured and Indicated resource categories (Table 4).

The mineral resource estimate is based on 709 drill holes totalling 49,319.9m. Drill hole data was validated by CSA consultants and only the reliable data supported by robust QA/QC procedures were used for resource estimation.





 
BCN to pay another small dividend this year of $0.00125

SP has been stagnant as it often is for extended periods but the Co. is plugging away and still making profits

Dividend
 
And yet another Dividend announced the other day. I managed to add a few more just prior to the cutoff date.

Dividend Ann

Been holding for a long time here and the SP is not known for moving in a hurry, lol, but the continual recent divis are pretty impressive for a Speccy.

I think it is just about ready to head to the next level. Making plenty of Cash and the consolidation period has been long and steady

I'm predicting a move to 042 not too far down the track (ie Current SP + 20%) Its just the vibe

 
Well I certainly nailed my last prediction with this little battler ...not

Been a bit one way for a while on the chart but the boys are still making money so in true "bad" Spec trading behavior,

I bought more recently including another 200,000 today at 024

A big 33 million shares were swapped in a Cross Trade early today at 024 with a few other decent bites throughout the day as well.

That indicates nothing immediate of course, but can sometimes be a precursor for some action further down the track.

There is a chance they may pay another small dividend later this year. The divvis alone have made the Stock a tidy accumulation trade, but even if no more divvis this year, I think they will have their day in the sun. I continue to buy BCN sunscreen just in case.

Chart shows Volume increasing recently with a test of the 023 low being currently rejected. My recent bottom picking has been a bit ordinary but if you keep buying the lows, sooner or later you get one right ... right! , Lol.
 
Hmm, don't think dividends will be on the table in the near future now that BCN is in a trading halt pending material acquisition as of yesterday morning...

I cannot find another junior in a trading halt today and usually both parties are halted. I'm trying to think of any goldies who are currently in a long-term suspension which may be a partner, but none are immediately coming up. MAT have a transaction which looks like its fallen apart on Thursday with an unlisted company, but I would have thought they would need to be in a trading halt as well if a deal involved them.

BCN only have a market cap of 80-90 million, so whatever they are looking to buy would probably be in the $10-$20 million range at most. If they were being taken over the announcement would have probably mentioned change of control, takeover, or something like that.

Anyways, always interesting to speculate on these things.


 
"OFFER TO ACQUIRE GEKO TENEMENTS
Beacon Minerals Limited (ASX: BCN) (“Beacon” or “the Company”) is pleased to advise that the Company
has executed an Offer Letter with Geko Pit Pty Ltd (“Geko”) for Beacon to acquire mining lease M15/621
and miscellaneous licence L15/355 (the Tenements) which are 100% owned by Geko (“Acquisition”).
The offer to acquire the Geko Tenements is part of the Company’s strategy of increasing the mine life at
Jaurdi and acquiring projects that build mine Reserves and complement the current operations. The
Acquisition remains subject to and conditional upon Beacon and Geko executing a formal sale agreement."

The consideration payable by Beacon for the Acquisition is:
 A cash payment of $7,750,000 (excluding GST) at completion of the Acquisition.
 An additional $3.0 million from production at a rate of 4% of the recovered gold value until a total of
$10.75 million has been paid

The Company will review the payment of a dividend and provide shareholders with an update when the
formal sale agreement is executed
 

Beacon Minerals (ASX:BCN) to acquire Geko mine from Bulletin Resources (ASX:BNR)

Beacon Minerals (ASX:BCN) has executed an offer letter with Bulletin Resources (ASX:BNR) for the acquisition of the Geko Gold Mine in WA.
themarketherald.com.au

Beacon Minerals (BCN) has executed an offer letter with Bulletin Resources (BNR) to acquire the Geko Gold Mine.

The Geko Mine lies only 15 kilometres south-southwest of Beacon’s Jaurdi gold processing plant in Western Australia.
 
I bought a few more BCN the other day at 024. I think they have the potential to become 'very' undervalued ... although I have been thinking that for a couple of years now, lol

Anyway, nice to see a lone order of 3 Million shares go through at 025 on the Open this morning. Where there is life there is hope.
 
barney said:
Anyway, nice to see a lone order of 3 Million shares go through at 025 on the Open this morning. Where there is life there is hope.
Click to expand...

Todays CLOSE looked a little "unorthodox", but the Stock has been getting a little bit of attention since my last post at $.025

025-026 looks like the new norm if the recent price action is confirmed.

I have another order in at 026 and a larger order in at 025, if it drops back there.

I have always thought the Stock is undervalued. With the uptick in GOLD, these lads could easily have a little run if they continue to upgrade/increase their small (but profitable) operation. All in my totally "biased" opinion of course (Thats me both whistling and smiling in anticipation, lol)

 
The Geko deal is now a done deal. This will give them a few more years of production. Co. also recently announced another Dividend payment. Slow and steady


 

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My January 2023 Monthly comp pick.

I own it. I like it. I think over time it will pay me handsomely. Hopefully I wont be too old to enjoy that moment

For the record: Minnow Goldie which has paid some pretty tidy dividends in recent years. Good management team.

SP should be higher in my opinion ....... SP will hopefully be higher with a little more water under the bridge.
 
barney said:
My January 2023 Monthly comp pick.
Click to expand...

CEO's are not known for being great traders of course, but I'm more than happy to see Graham McGarry has just purchased another 17 million shares at 027.

I assume he doing his own "dividend reinvestment plan" after the recent divi was paid.

Now owns nearly 405 million shares which equates to +$10 million.

The optimist in me suggests BCN could be a legitimate take over target a little further down the track? Slow mover, but certainly watching with interest

 
Mmmmm, ... $100K order took out the remainder of the 028 line which has looked pretty tough to crack in recent days.

BCN has never moved fast in the past so I only expect small ripples at this time of year, but interesting recent price action for sure.

Have a top up order in at 027 myself to round out my holding. Expecting a bit more Supply to drop in at the 028 before any real movement but we shall see.
 
As I flagrantly mentioned on the VML thread, with total disregard for any cross promotion rules, lol.

I have not so discreetly increased my overall holding in this little battler recently. I actually tried to get even more at 026 but that has failed in the short term. If it continues to fail I will not be complaining!

For anyone that enjoys the ebbs and flows of an emerging Spec which has the characteristics of watching paint dry ...
This could be the Stock for you!

Silliness aside, the lads at the helm of BCN are slowly but surely adding more ounces to their bottom line. They still have a healthy cash balance and inflow from operations. If the price of GOLD remains buoyant, I see a potentially healthy future for them and have invested accordingly.

Announcement last Friday they have locked in 6000 ounces of Forward Gold Sales at $2729 per ounce. Not a major story of course, but sensible management and healthy for a minnow Spec which is chugging along nicely.

Lots of Shares on issue may appear as a downside to some punters (around 3.75B) Market Cap around $100M



 
barney said:
Mmmmm, ... $100K order took out the remainder of the 028 line which has looked pretty tough to crack in recent days.
Click to expand...

Above Order/post was on 30th December when the 028 was line wiped.

An Order came from off screen at the Open today and line wiped all the available 030

Cant help but get the feeling the boys are starting to get noticed.

The Company is in a much better/more stable position than a year ago when they tested the old 038 level. No reason why that shouldnt be revisited not too far down the track given the POG etc

Be interesting to see how much Supply drops in around 030-031 being an old resistance level.
 
The SP has been doing its usual tight range zig-zag since my last post.

There is a bit of action on the radar at the moment however.

Currently in a Trading Halt pending a material acquisition.

SP is still a little like watching paint dry, but the longer paint dries, the harder it gets to remove!

I expect a "little" Volume to kick in early next week. Whether we get back above the tough 030 zone is yet to be seen.

Personally Im predicting 032+ on Monday. Remaining at 030 or less will be a disappointment. 034 or above would be very nice
 
The voluntary Suspension regarding the current "material acquisition" continues until Friday Open. Never great seeing holdups in negotiations but we shall see what eventuates. ?

 
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