Blackham Resources Heads to Production
Blackham Resources has announced receipt of a series of regulatory approvals needed to commence operations at its gold properties in the Wiluna region of Western Australia. The company will be the latest in a new generation of WA gold miners going back to historical workings with more sustainable operating plans. Blackham was classified as a Phase II company and rated ‘3+’ on the five point PortfolioDirect rating scale in a 6 May 2016 report indicating an attractive current valuation with expected positive value momentum to support future share price appreciation. Blackham has an asset base in the mid-upper quality range and a risk profile near the lower end of feasible outcomes. Aside from being a near term proxy for movements in the gold price, investment returns will depend on realisation of intentions to begin production in September and, beyond that, raise the available resource base to extend the production life from a little below eight years to ten years or longer, both judged likely outcomes. The company has the potential to raise investor interest by clarifying a dividend policy.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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