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 Corporate Profile: Brazilian Gold Corp
    Publisher: Kaiser Research Online
    Author: Copyright 2010 John A. Kaiser

 

Brazilian Gold Corp (BGC-V)

RSSearchWeb SiteTreeForumSEDARQuoteIPV
Brazilian Gold Corp changed its name from Red Dragon Resources on January 6, 2010, reflecting the company's move into Brazil that took place during the second half of 2009. Led by CEO Ian Stalker and President Joanne Yan, the company has a 51% interest in the Boa Vista gold project optioned from a subsidary of Majestic Diamonds & Metals, and an 80% option on the Maues Gold project, both in the Tapajos region. The company also has a 50% interest in the Rea uranium project in the Saskatchewan Basin where Uramin is vesting for 50%. Subsequent to its move to Brazil, the company has since expanded its property portfolio by acquiring a number of early-stage gold prospects, primarily in Para State. In September 2013 Brazilian Gold agreed to be acquired by Brazil Resources, with BGC shareholders receiving 0.172 BRI shares per BGC share, around a $13.5 million valuation.

Key to Understanding IPV Charts and Spec Value Hunter Tables
An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production.
Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked.
Poor Speculative Value - Fair Speculative Value - Good Speculative Value -
Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits
Click on the company name to view the company profile, the project name to view project details.
Click on the project icon if its background is shaded to get the IPV Chart for that company.
Brazilian gold Project Valuations
CompanyProjectCountryStageIPV $
MM

$100
UPV
$500

$2000
Target MetalsDeposit Style
Key Company Projects
Brazilian Gold Corp (BGC-V)Boa VistaBrazilTarget Drilling $14 GoldQuartz Vein / Stockwork
Brazilian Gold Corp (BGC-V)Maues GoldBrazilTarget Drilling $15 GoldVein / Stockwork
Brazilian Gold Exploration
Eagle Graphite Inc (EGA-V)LimaoBrazilTarget Drilling $8 GoldVein / Shear
Aura Minerals Inc (ORA-T)CumaruBrazilTarget Drilling $91 Gold Copper NickelPorphyry / IOCG
Colossus Minerals Inc (CSI-T)Serra PeladaBrazilConstruction $11 Gold Platinum PalladiumSediment Hosted
Magellan Minerals Ltd (MNM-V)Cuiu CuiuBrazilInfill & Metallurgy $19 GoldSheeted Veins
Rio Novo Gold Inc (RN-T)AlmasBrazilPermitting & Feasibility $23 GoldVein / Shear
Talon Metals Corp (TLO-T)Barro do FrancaBrazilGrassroots $11 GoldShear / Stockwork
Advanced Brazilian Gold Projects
Amarillo Gold Corp (AGC-V)Mara RosaBrazilPrefeasibility $25 GoldShear
Brazauro Resources Corp (BZO-V)TocantinzinhoBrazilPrefeasibility $476 GoldStockwork / Veins
Euro Sun Mining Inc (ESM-T)Riacho Dos MachadosBrazilConstruction $83 GoldShear
Luna Gold Corp (LGC-T)AurizonaBrazilProduction $77 GoldShear
Success Stories
Aurelian Resources Inc (ARU-T)Frutta del NorteEcuadorPEA $750 Gold SilverIntermediate Sulphidation epithermal
Cambior Inc (CBJ-T)RosebelSurinameConstruction $1,349 GoldSaprolite
Desert Sun Mining Corp (DSM-V)JacobinaBrazilProduction $1,070 GoldPaleoplacer
Sao Jorge100% WIBrazil5-PEA
Sao Jorge 43-101 Economic Study (USD except where noted otherwise)
PEAJun 21, 2011
Coffey MiningSao Jorge
Mining ScenarioTRMining Costs
Mining Type:OP
Cost Currency:USD
Processing Type:

Capital Cost:$113,834,558
Operating Rate:5,500 tpd
Sustaining Cost:$12,381,509
Operating Days:300
Operating Cost:$16.36/t
Strip Rate:4.5
BC Cash Cost per Unit: USD$510/oz Au
Mine Life:8 years
BC Cash Cost Net By-Products: USD$510/oz Au
LOM Tonnage:15,615,000 t
BC All-In Cost Net By-Prod: USD$812/oz Au
Est Startup:

Spot All-In Cost Net By-Prod: USD$812/oz Au
Production Potential

Metal 1Metal 2Metal 3Metal 4
Metal:Au


Grade:0.93 g/t


Recovery:91.0%


Annual Output:52,900 oz


LOM Output:418,473 oz


Base Case Price:$1,300/oz


Spot Price:$1,315/oz


Base Case NSR:$41.68/t


Spot NSR:$42.16/t


Base Case Valuation
Reported Valuation Currency:USD
Pre-Tax NPV:$99,100,000
Discount Rate:5%
After-Tax NPV:
Total Base Case NSR USD:$41.68/t
Pre-Tax IRR:23%
Total Spot NSR USD:$42.16/t
After-Tax IRR:
Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD:$41,776,000$0.35Pre-Tax Payback:3.0 y
Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD:$42,572,145$0.36After-Tax Payback:
Enterprise Value CAD :$11,225,436$.10/shShare Price:$0.11
Note: 2.3$ NSR
Comparative Valuations using Life of Mine Averages
Discount Rate:0%5%10%15%
Base Case Pre-Tax NPV USD:$207,991,933$139,209,121$91,618,649$57,985,051
Base Case Pre-Tax Net NPV/Sh USD:$1.83$1.22$0.81$0.51
Premium BC PT NPV over EV:$1.75$1.15$0.73$0.43
Spot Pre-Tax NPV USD:$214,361,093$144,109,745$95,479,899$61,091,624
Spot Pre-Tax Net NPV/Sh:$1.89$1.27$0.84$0.54
Premium Spot PT NPV over EV USD:$1.81$1.19$0.76$0.46
The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study.
After-Tax Valuations using Spot By-Product Prices

 
 

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