Bluestone Resources
Summary
- Advancing the Cerro Blanco gold project in Guatemala.
- Lundin Group interest.
- 3.1 Million oz. gold, 13.4 Million oz. silver.
Bluestone Resources, part of the Lundin Group, is advancing the Cerro Blanco gold project in Guatemala. It is a 3.1 Million oz. gold and 13.4 Million oz. silver (Measured & Indicated) resource.
Estimated to produce 300,000+ oz. gold and 10M oz. of silver per year using open-pit operations.
AISC over LOM is stated as $642/oz. of gold.
The company's current focus is a Feasibility Study (due Q1 2022), permitting, and capacity building & skills development within the local community.
Bluestone updated its Resource and NPV to $907 Million in June 2021.
Several analysts, including Canaccord Genuity, cover the stock with an average target price of C$4.30.
Franklin Gold & Precious Metals Fund owns 6,800,000 shares representing 4.5%.
Bottom Line: I was a tad early on these shares at $1.40 US. Added to position on recent weakness at $1.08, have a 2% position. Well-funded company with a history of success behind it, I am comfortable holding it while waiting for further development and strength in the gold price; hoping for a 3x-4x from here.
Financials:
Market Cap: 172.25 Million (USD)
Share Price: $1.15 (USD)
Shares outstanding: 149,720,416 Fully Diluted shares as of July 2021.
Cash: $41.53 Million (USD) as of 30 June 2021
Current Liabilities: $2.73 Million (USD).
Long-term Debt: Nil.
Current operations: Mine Design, Feasibility Study, Permitting.
Insiders: 27% Institutional: 35%
Website: bluestoneresources.ca
https://bluestoneresources.ca/_resources/presentations/corporate-presentation.pdf
CEO: Jack Lundin
Analyst's Disclosure: I/we have a beneficial long position in the shares of BBSRF either through stock ownership, options, or other derivatives.
CAVEAT: This blog is not intended as financial advice, I simply update you on how I am periodically allocating positions within my portfolio.
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