Ex-rights date on the 3 for 7 I think is 4th April - current sp 14.5c, so you've got about a week to buy in if you want the entitlement at 6.2c On the face of it a clear opportunity to buy and hold until after the issue then immediately sell. The sp will pull back of course, no idea by how much - pro rata on the dilution, but could be as much as 5c I reckon - even so, money to be made here very possibly? Read up on announcement & comments here: http://hotcopper.com.au/asx/bgs/ Dyor. VRS
Well done Good day for lithium stocks, plus BGS gold play gives it a double play. Don't hold yet but looking at it, funds in other stocks right now. Might have to do my own capital raise.
i dropped 5k in BGS on monday. it's up $4275 since then. happy days. lithium is really on a run and a geologist i follow believes this one is likely going to pay off when the drills hit paydirt. i'm also holding GXY and VMC for lithium. PSC TRY SLR for gold / silver FND copper AZS silver
I think it's still early. The drilling hasnt even started yet. We have just buckled our seat belts. The engine isnt even running yet. Still some time to hop on the bus
I'm naturally cautious having seen bubbles pop many times over so once the exuberance has subsided lithium will get a kicking. That and there will be newer technologies that will supercede Li - there always are - but for now, riding the kick up in a company with an (alleged, unconfirmed) spondulickium resource of 2%, low Fe, seems OK - and because I've always been waiting to see the Morila deal done, I'm fairly confident something will happen on the gold processing with RG soon - but we shall see - best not to speculate too much at this stage... wait for action. One concern is that Mali's a long way away from Oz and not only isn't infrastructure in place, the Chinese have already proved the kind of deal they prefer with their involvement in Greenbushes - no sovereign risk at all, transparent, easy peasy. Greenbushes in WA is 1.3%, BGS's (alleged) Li in Mali everyone's thinking is around 1.8-2.2% but we're not totally sure? The other thing is that the rights issue looks like being 100% subscribed, so once the new shares are in circulation the price may come off a bit, however the jump to 20.5c this week from around 16c was after it went ex-rights, so you never know...
So does that mean that you were just in date on the rights issue, it being the 4th April when you bought 'em?
I'm just trying to weigh up whether it's an idea to lock in some gains from the rights issue by divesting the same number of shares due in my entitlement... at current sp that'd be worth well over $20k. It's been a while since I've had such an investment dilemma - but then again if the sp goes to 50c short term I'll be kickin' myself...
Also facing the same dilemma VRS but holding on for the ride for now, took a hammering from LSR so nice to see the green growing daily with BGS, could be massive and still a good buy but may retrace once the cheap shares are out.......sure to be snapped up quick though.
What'd be the icing on the cake for me and probably put a rocket under the sp apart from firming up the Li 'resource' would be a deal on gold processing at Morila... then the fun'd really start = instant cashflow - proper income from a tangible business model as it lands fair & square with a big fat shiny THUD... I think most of the current lithium-focused bods holding just don't see that as importantly as I do - and they conveniently ignore the point that a company like China's CTIG were happy to pay $815m via takeover for Greenbushes in WA in 2012 because it was an easy gig. CTIG or a similar suitor could've bought into Bougouni too - for peanuts - but they apparently chose not to...
Think we all might get a nice surprise once the drills start getting a good grasp of what is actually at Bougouni, we could well have a heap more than what we think is there at the moment. Also think there is a good reason no-one else snapped it up, and that is because no-one knew about it. Go do a google on Lithium in Mali and see what you come up with, Apart from links to BGS there are only two hard to find solid pieces of info to do with the Lithium deposits, and then a smattering of historical notes from geological books a good 50 years old. PLS also paid penny's on the pound for their current asset. At least half of the new shares will be going to long term holders, with another large bunch to new holders who have ridden the likes of PLS,GXY, and similar to today's highs. Let's be generous and say new buyers get lucky and half of all the new shares are sold in the first week, How long to you think it will take 20 Mil shares to be snapped up given that nearly 4 million were eaten up on Friday alone and gave us a 12 mth high ?
Yep i missed the rights issue but it probably factored into how i could get the bgs shares on the cheap... Went from 16c to 11c and a 3 for 7 rights issue puts the 16c share price at around 11c post the record date. Holders would be mad not to take up the issue in full. Bgs to speculate, gxy to invest.
