/biz/ - Business & Finance

https://stocktwits.com/symbol/CLF

>>26185593

Top kek

>He sold Friday

https://stocktwits.com/symbol/CLF

>for the prep the /BHLL/ anons and heavyrotation.

Here's an expert analysis of Bunker Hill from this sunday.


The mine has a very rich history of producing metals as well as toxins for the local population. That led the mine to be declared a Superfund site in 1982. Bunker Hill acquired the mine and after years of cleanup the EPA is allowing mining and exploration to recommence but the company has to pay the EPA $20M over 7 years. In short, the company has a lot of work to do and it won’t be cheap to do but the Bunker Hill Mine has strong potential to be a tier 1 silver project and one of the biggest silver mines in the world. The company just closed a huge financing and raised C$20.4M. They do have loans of US $2.1M and a US $5.9M payment to make for the acquisition of the mine. The total cost was US $11M and $4.8M will be paid in shares. Post-financing there are 137.4M shares out and 230.2M shares fully diluted. Roughly 34M warrants are exercisable at C25c and there are 58M (from the recent raise) exercisable at C50c. If all the warrants were exercised, the company would gain C$23M in cash. Fully diluted, the company right now has a market cap of US $85 Million. The Bunker Hill Mine has historically produced ~160M oz Ag plus base metals. In 1991, a resource estimate showed 59M oz Ag-eq @ 11 oz/ton. That accounts for only reserves and do keep in mind, pre 43-101 compliant estimates are unreliable. They could potentially drill 40,000 meters to begin exploration and they think 150M oz Ag-eq is an achievable resource. The value proposition for Bunker Hill is they could rehab and refurbish a mine that has potential to produce 7M-10M oz Ag/yr at a very low cost. Perhaps it could cash flow somewhere from $100M to $150M/yr (at $27-$28 Silver) depending on exact production. Given the valuations silver producers trade at, that would equate to a + $1 Billion valuation and perhaps $1.5 Billion to $2.0 Billion on the upper end.