Jul. 19 at 8:39 PM
$BLAGF https://finance.yahoo.com/markets/commodities/articles/blue-lagoon-surpasses-10-million-110000693.html this announcement of 125 tons per day is a 25% increase from the 100 TPD announced on May 19th. This 125 TPD rate annualizes our June 100 TPD monthly CF of
$1,662,868 at
$4000/ounce to
$24,943,020. The industry market cap to cash flow multiple from SA is 8.44 for forward CF or
$210,519,088 market cap at year end
$1.38 /share. But the release says that production will grow to 150 TPD soon. Additionally, I believe they hope to get to 200 TPD by year end, but we are still waiting to get to 150 TPD.
The annualized year CF at 150TPD =
$29,931624. At 8.44 mkt/cf share =
$252,622,905 or 1.66 per share.
The transaction to bring in Big Onion should lay off
$2MM in future development costs and add another mining operation that should derisk Blue Lagoon.
$10MM in revenues is confirmation that BLAGF is starting to mine in a predictable steady manner off of which the company should continue to expand mining and commence the drilling in September. Solid mining progress!