Jim 2022/08/19
GROSS GESCHRIEBENE PASSAGEN SIND DIE ANTWORTEN VON JIM
Hi xxx,
My apologies, it has taken far too long for a response!
a user on ceo.ca told me that prices increased in CAN around 40%
(material and energy costs); i suppose BNCH have included this increase
already in the PEA; i suppose this is the reason you took POG $1735 for
your PEA calculation; but silver at 21.75 is sporty 
WE ARE SEEING SOME COST INFLATION. BUT WE INCLUDED A LARGE CONTINGENCY
IN THE PEA TO ACCOUNT FOR MORE COSTS AS WE WORK TOWARDS THE FEASIBILITY
STUDY. $73 MILLION REPRESENTS A HEALTHY BUFFER FOR FUTURE COSTS.
i also suppose all
PEAs and FS made from other companies in the last 2-3 years could not
hold their calculated numbers THE NUMBERS IN THE PEA ARE VERY REALISTIC
AND REPRESENT CURRENT COSTS TO BUILD A MINE. WE HAVE OPPORTUNITIES TO
ADD MORE OUNCES UNDERGROUND AND HAVE OPTIMIZATION OPPORTUNITIES AT THE
WASTE AND TAILINGS FACILITIES TO IMPROVE AS WE WORK TOWARDS THE
FEASIBILITY STUDY
from Sprott research : "Cost inflation of ~20% on both opex and capex
drove a lower NPV than we forecast...." THE CONTINGENCY HELPS ALL FUTURE
INCREASES AND WE WILL ADD MORE OUNCES WITHOUT THE NEED FOR MORE
DRILLING
MORE VALUE AND IMPROVEMENTS IS POSSIBLE AS WE MOVE TOWARDS FEASIBILITY. FOR THOSE WHO BELIEVE IN HIGHER METAL PRICES, THE ECONOMICS BECOME
AMAZING AT $1800, $1900 and $2000 GOLD
does BNCH have some new analysis from partners ? i only found Sprott
research SPROTT IS THE BEST NEW RESEARCH BUT MORE REPORTS ARE COMING
Well, there are a few points of concern at the moment and i forwarded you some questions from the forum.
1. Low cash level MORE CAPITAL IS AVAILABLE IF NEEDED. THE COMPANY IS
ALSO EVALUATING ALTERNATIVE SOURCES OF CAPITAL INCLUDING NSR AND
STREAMING TO SUPPORT A MIND BUILD
2. Open warrants at a high price compared to the share price. WE CANNOT
BECOME DISTRACTED BY WARRANTS OUT OF THE MONEY. THIS IS AN EXCEPTIONAL
MINE IN ONE OF THE BEST, PROVEN AND SAFE JURISDICTIONS OF THE WORLD
3. fear of massive dilution
SEE ABOVE, DILUTION CAN BE MANAGED BY ALTERNATIVE FINANCING IN THE
FUTURE. IN ADDITION, THE MARKET WILL TURN AND INCREASE THE BNCH VALUE
4. no chance of a takeover due to the "low" IRR
THE IRR IS VERY GOOD FOR NEAR 170,000 AuEq OUNCE PER YEAR OVER 12 YEARS.
THIS MINE WILL IMPROVE INTO FEASIBILITY. MAJOR MINERS NEED NEW OUNCES
IN SAFE JURISDICTIONS. IT IS GENERAL MARKET MALAISE AFFECTING THE MARKET
CAPITALIZATION AND NOT THE PROJECT ECONOMICS
5. What is Jim's assessment of the impact on a possible takeover if a
find is made on, Kodah or Round mountain, but no resource can be formed?
THE COMPANY IS SEEING MORE INTEREST FROM CORPORATES SINCE THE PEA RESULTS
6. Please ask Jim how things are going on at Marmot. Is there enough money to produce another resource there?
MARMOT AND MULTIPLE OTHER TARGETS HAVE POTENTIAL FOR MORE OUNCES BUT
THIS REQUIRES MORE DRILLING AND WILL NOT BE INCLUDED IN THE FEASIBILITY
STUDY. THE NEW TARGETS WILL BE DRILLED AND TESTED TO SHOW LARGER
RESOURCE POTENTIAL
7. does BNCH consider a share consolidation at 4:1 or 5:1 like SKE ?
NO SHARE CONSOLIDATION IS REQUIRED. FINANCIAL MARKETS WILL IMPROVE.
a personal thought from me :
We know that Thesis and BNCH operate under the Metals Group.
YES BUT THE MANAGEMENT AND BOARD OF DIRECTORS ARE COMPLETELY INDEPENDENT FOR EACH COMPANY
BNCH has now calculated the expansion of the infrastructure starting
from the Centerra mine within the framework of the PEA, keyword power
line 66 km. THE POWERLINE TO KEMESS MINE OFFERS CLEAN, GREEN HYDRO
ELECTRIC DAM POWER AT A LOW COST. THEIR ARE OPPORTUNITIES TO LOWER THE
POWERLINE COSTS INTO FEASIBILITY
BNCH bought in the past a narrow strip up to the bordering Thesis. So
BNCH can build a power line directly to Thesis in a straight line. THERE
ARE SYNERGIES BETWEEN THE TWO COMPANIES BUT BENCHMARK YEARS AHEAD WITH
+$100 MILLION SPENT TO ACHIEVE A PEA AND FUTURE FEASIBILITY STUDY.
THESIS NEEDS TO SHOW NEW DRILL RESULTS AND A FUTURE MRE
BNCH is being exploited now, so to speak, because BNCH has at least a
2-3 year head start on the development of the area. Thesis needs longer.
But synergy effects could be created here. Thesis is only 20 km away from BNCH.
DRILL RESULTS, MRE AND ENGINEERING ARE REQUIRED AT THESIS TO DEMONSTRATE
SYNERGIES. BUT THESIS HAS VERY GOOD POTENTIAL. BNCH TOOK 5 YEARS TO
PRODUCE A ROBUST PEA AND THIS IS TYPICALLY EXTRAORDINARILY FAST!
After 4-5 years of mining, the quality of the soil deteriorates. So you
could also move mining and processing equipment to the Thesis area and
then start early there.
BENCHMARK HAS 12 YEARS OF MINING AS A START. THIS COULD IMPROVE INTO
FEASIBILITY AND THE COMPANY HAS NEAR 20 TARGETS TO ADD MORE OUNCES. THE
SCOPE AND SCALE OF ADDITIONAL RESOURCES AT BENCHMARK IS ASTOUNDING.
THESIS REPRESENTS POTENTIAL SYNERGIES BUT THIS WILL REQUIRE MORE CAPITAL
AND TIME TO PROVE
(Ab hier antwortet Jim direkt) :
There’s more improvements and optimization coming.
More ounces and trimming of capex should significantly improve metrics.
However the numbers are already very good for a producer at ~170,000
AuEq per annum
The dataroom provides detailed information that supports the MRE and
PEA. It’s common knowledge that we have corporates learning about BNCH
and performing due diligence
Q: but what interest me ...... the "data room" is not a physical room; i
suppose it is a server, where people get more access if they have
signed the confidentiality clauses
A: Online access to digital information. Similar to file sharing like a OneDrive