PUNT OF THE WEEK: Bluebird Merchant Ventures reopens old gold mines


PUNT OF THE WEEK: London Stock Exchange-listed Bluebird Merchant Ventures reopens old gold mines

What is it?

Bluebird Merchant Ventures reopens old gold mines. It is listed on the London Stock Exchange’s main market.

What’s the latest?

It is in the process of buying 100 per cent of its projects in South Korea from joint venture partner Southern Gold. This week it said there is local support to restart a Philippines project.

Who backs it?

Management and other individuals own more than a third of the stock. Boss Colin Patterson is the largest shareholder with 17 per cent. Harwood Capital is also a backer.

Why should you invest?

John Meyer, mining analyst at SP Angel, says: ‘Reopening old mines is generally seen as a lower-cost route into mining, so Bluebird should have relatively low capital costs and certainly have very low corporate costs.’

And why shouldn’t you?

But, he adds: ‘This is definitely a stock at the higher-risk end of the spectrum – if they do what they say they’re going to do then it will be very good.

‘There is also an element of risk for any company that needs to get permits for their work until they are secured.’

READ  Pound hits 35-year low and oil crashes 14% on lockdowns



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here