BMG Resources is looking to mine copper in Cyprus where it has an early mover advantage in a proven location of copper mineralisation
BMG Resources is looking to mine copper in Cyprus where it has an early mover advantage in a proven location of copper mineralisation. Cyprus' very long mining history lessens the exploration risk. The company can take advantage of a dearth of modern exploration activity to re-define how to approach mining on the island. There are risks. The share price has risen as much as sixfold in a little over two weeks raising the short term market risk profile. BMG still has to assimilate historical data with its own drilling to produce a sufficiently different and coherent interpretation of the geology before mine planning can commence. It will probably need more funds but could offer a relatively short timeframe within which production could commence. In the context of the risks investors normally face, those of BMG are moderate and likely to fall.
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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