BNR - Bulletin Resources

[barney]

3.5 years since a post on this little minnow. I have bought and sold a few here and there and still hold a handful so the current price action is starting to look interesting.

I could be wrong but I smell a takeover offer from PNR (Pantoro own 80%) to tidy this one up .. we shall see

 

[pixel]

3.5 years since a post on this little minnow. I have bought and sold a few here and there and still hold a handful so the current price action is starting to look interesting.

I could be wrong but I smell a takeover offer from PNR (Pantoro own 80%) to tidy this one up .. we shall see

Hi Barney,
Thanks for the heads-up.
"Tightly held" you said in the breakout thread. That is certainly true, but I don't mind that.
For a quickie, the 6.5c resistance looks like a reasonable profit target off a 6c support..



If you believe in the yellow metal's future, there is still more upside - even back into the teens.



For this leg, I aim for a quick swinger, risking 0.1, aiming for 0.4.

 

[barney]

For this leg, I aim for a quick swinger, risking 0.1, aiming for 0.4.

Geez you almost got your profit target in one day

Appreciate your input Pixel.

I'll update a bit of fundamental stuff over the weekend for anyone who might be interested. Holding BNR is usually a bit like watching paint dry but with the mine ramping up production it might get a bit more trading interest.

Cheers.

 

[piggybank]

I suppose one should put it in the thread created for that stock in question.

https://www.aussiestockforums.com/forums/showthread.php?t=5351&page=105

Finished the week up just over 16% on volume of 1.91 million.

 

[barney]

A bit of info taken from the Half Yearly:-

In September 2015 Bulletin Resources and its JV partner Pantoro Limited (PNR) became Australia’s newest gold producer with first gold poured from the Nicolsons and half year production totalling 5,143 Oz gold.

The Nicolsons mine continues to ramp up production towards nameplate capacity. The mine is now beginning to settle into steady development with the first three development levels nearing completion, and the access to the fourth level (2185 mRL) well advanced. It is expected that steady state production should occur in the March quarter.

The joint venture operator, Halls Creek Mining Pty Ltd (HCM) has advised that it continues to see a substantial overcall to the JORC Reserve model which will provide significant potential to extend the mine life and production capacity at Nicolsons.

Approximately 180% of the modeled Reserve ounces were recovered during the October- December period with Reserve overcall resulting from a number of factors listed below, all of which were positive throughout this period:

Increased tonnage and grade within the area currently classified as Reserve;

Extension of the Reserve along the strike of the main ore zone.

The strike length of the Reserve was increased at both the North and South ends of the Reserve;

Mining of high grade splay veins extending off of the main lode. The splay veins were not previously modeled in the Reserve calculation. Total ounces mined compared with the Reserve have overcalled on every level and during every month since ore development commenced in August 2015.

No Reserve updates have been undertaken to date, however the substantial overcall experienced in the areas mined to date suggests excellent potential to upgrade the mine inventory when adequate data is available. Work to re-estimate the levels developed to date has commenced, and diamond drilling from underground drill platforms is due to commence in the ensuing quarter. Once adequate drill and development data is available, the Reserve estimate will be updated.


Basically they have, and are expecting to continue to increase the resource size substantially. Current production is expected to cover all expenses at this early stage so no capital raising required from this point.

Only 174 million shares on issue. Top 2 shareholders own almost 50% and have continued to buy on market.

Hartleys have done a promo on PNR who own 80% of the JV and values them at around 17 cents per share (currently at 8.8 cents and under some solid accumulation)

With BNR owning 20% of the JV, and with no foreseeable dilution required given the current production numbers, they look like an obvious takeover target from PNR at some point.

On top of that, PNR could also attract some takeover attention of their own, particularly if the upcoming and future production numbers continue to increase as they have been.

In my opinion both PNR and BNR look like very healthy Spec plays in the current market ...... Heaps more info on the respective web sites re the resource expansion etc

PNR .... http://www.pantoro.com.au/

BNR .... http://www.bulletinresources.com/

 

[barney]

For this leg, I aim for a quick swinger, risking 0.1, aiming for 0.4.

Not sure if you are still in Pixel, but if so, you are about to own 1 PNR share for every BNR share you purchased.

You get to keep your BNR shares so the deal is not too bad. BNR management are supposedly looking at potential new project/s and have a little spare cash in the bank with nil debt.

The positive is a holding a stake in PNR which will now own 100% of what is emerging as one of the nicest looking small gold deposits in Oz with huge upside potential.

The negative is that BNR SP will likely drop, although if management come up with a new plan quickly, and given how tightly held this stock is, it might not drop near as much as it could have. All in all, not too bad for shareholders at this point.

 

[barney]

The deal between BNR and PNR is now finalised. Today is the last day you can purchase BNR shares and still get your in-specie distribution of 1 for 2 PNR shares.

The SP has been pushed up strongly off the back of the deal with BNR hitting 0.095 today. It will be interesting where it opens on Monday when the ex-capital entitlement is over ...... My guess is around 4-5 cents but either way the PNR shares acquired have made it a very nice trade.

Management of BNR will likely have cash and assets after the deal of $5-6 million and now look a very attractive shell Company. With 6 months to rustle up a new project they are in a strong position for a minnow. On top of all that the Halls Creek Gold deposit is shaping up as potentially big for PNR .... happy to hold both!

 

[barney]

BNR In specie distribution is now complete. With the healthy rise of PNR recently the 1 for 2 shares deal for BNR holders has been a good trade. BNR SP has dropped further than I expected but PNR shares have also increased a lot so the equilibrium is still solid.

BNR now have cash and assets worth around $5 million and will be on the lookout for a new venture over the next few months. Currently trading at 2.5 cents which is less than their current cash/asset backing so anything under this price is starting to look a low risk trade in the short term.

If the Gold reserves keep advancing at the Halls Creek project just sold, the value of the PNR shares which BNR holds could rise exponentially as well so the POG will likely hold the key to how this performs till a new venture is sourced. Happy to hold BNR at least in the short term and hopefully PNR long term with the Halls Creek project looking like one of the better new Oz gold deposits in production

 

[barney]

I will be putting BNR in as my stock pick again this month (for about the tenth time ).

With the Pantoro takeover done and dusted, BNR management have gone into hibernation mode and to be honest are starting to look a little lazy to me. That aside, they have swung a deal with Geko Gold which has the potential to create cashflow if all the ducks align.

The main positive for the Company at the moment:-

1.Low market cap …. basically cash value which makes them an attractive Shell to the right Company.
2. Company costs are negligible with them in hibernation mode at present/no cash burn.
3. Share price is poor but there has been no aggression in the recent selloff.
4. If the Geko Gold deal comes off, BNR basically get a free lunch/value to the SP.

Not exactly a great buy but at these prices it has a punters hope

Discl. I still own a handful but sold the majority once the PNR deal was settled.

 

[barney]

Sold half my remaining BNR at the recent mini spike to 5 cents …..

Still hold half a handful and hoping to catch any remaining move North off the back of their low market cap/high cash position …. plus they have announced today a NEW acquisition … (finally!!)

The BNR/PNR takeover was kind to me but I will let my remaining BNR shares go if they spike in the short term.

 

[barney]

Acquisition announced today for BNR …

• 80% interest in the Hodgkinson Basin Gold Project

• The project contains a gold resource of 618,000 oz (2004 JORC compliant)

• Project located in a known gold district

• Large quality brownfields exploration play with significant potential

• Acquisition is in staged payments over 30 months allowing funding through existing cash reserves

• Work will commence as soon as possible with the initial focus on upgrading the resource to JORC 2012

 

[barney]

Market didn't get too excited about the acquisition but BNR is very tightly held, so minimal supply.

A few stale Bulls sold into the 13% rise … then a further announcement regarding a settlement of their Gecko Gold project dispute …

Current Trading Halt with expected news on Gecko by Tuesday at the latest …. If the News is positive which I expect, the SP could easily jump back to the recent short term highs of 5 cents … maybe higher. If the news is ordinary, I think the SP will likely hold steady around the 4 cent region …

Fairly low risk short/medium term play but still very Spec and should be treated accordingly

 

[craigj]

Has received a royalty payment of $934 k for December quarter from Geko Gold Mine

A drilling program from Lake Rebecca is due soon

Market cap 16 mill

 

[greggles]

Multiple lithium targets have now been identified at the Ravensthorpe Lithium Project. Spodumene bearing pegmatite rock chips with up to 6.6% Li2O remain to be followed up at Deep Purple pegmatite. Float outcrop mapping in creeks supports the opportunity for further pegmatites beneath shallow cover.

BNR is one of the few ASX-listed hard rock lithium companies. This will be one to watch as drilling gets underway later this year.

 

[Dona Ferentes]

Multiple lithium targets have now been identified at the Ravensthorpe Lithium Project.

BNR is one of the few ASX-listed hard rock lithium companies. This will be one to watch as drilling gets underway later this year

Obviously early days, but the neighbourhood is acceptable.

@barney , it was a lonely decade, just reading through the thread

 

[barney]

@barney , it was a lonely decade, just reading through the thread

Lol .. Indeed it was @Dona Ferentes Fortunately I'm used to talking to myself

Ended up being a good trade with the PNR-BNR 1 for 1 takeover so no regrets at missing the current move.

 

[Country Lad]

Broke out Monday, went on with it yesterday and up another 26% this morning before a halt for another announcement. Will be interesting to see if they forgot to say something last which is out in the market.
I hold

 

[Swervin Mervin]

B

Broke out Monday, went on with it yesterday and up another 26% this morning before a halt for another announcement. Will be interesting to see if they forgot to say something last which is out in the market.
I hold

Bought some yesterday and today. Hopefully a good Ann on Monday, if not it’ll get punished. Surely no requirement for a halt if its average news. Good luck mate

 

[bk1]

The occurrence of spodumene is growing along the trend, still a long way from drilling and proper assay results.
But the strike is unexplored over much of its length.
I hope the next trading halt is handled a bit better, but what do i know....

 

[Sean K]

LOL, huge run up last week, into TH on 19th for this. Didn't get a please explain. ASX asleep at the wheel again.