2016 ? The Great Irish Share Valuation Project (Part IV):
Company: Botswana Diamonds (BOD:LN)
Last TGISVP Post: Here
Market Cap: GBP 6.7 M
Price: GBP 1.975p
Welcome back to The Never-Ending John Teeling Story? I had previously tagged BOD as worthless, so I?m gobsmacked to see it worth more today, at least in terms of market cap (share price is actually lower, but the share count doubled). Nothing?s changed?just more reports of ALROSA geologists wandering around Botswana, taking samples & finding the odd 1mm (that?s not a typo!) micro-diamond here & there. Sure, an ALROSA JV is impressive, but I?m beginning to wonder if it?s really just a staff holiday scheme for their (probably) badly paid geologists?put in a week or two on safari in Botswana, then head down to Durban?s Golden Mile for an all-expenses-paid getaway! The only impressive news is the appointment of James Campbell as MD ? his resume?s certainly exemplary, but it remains to be seen what he can do with something like BOD!? As for the company?s finances, they?re more appalling than ever ? annual cash burn will likely exhaust cash on hand (less net payables) some time in H1-2017:
(GBP 0.5 M Cash ? 0.1 M Net Payables ? 0.6 M Annual Cash Burn) / 338 M Shares = Zero
Yup, once again, BOD?s obviously worthless ? how they keep raising money is beyond me. It?s astonishing to think unrelated parties, i.e. the great unwashed, occasionally buy this stock. Have they ever looked at the price chart?what are they hoping for here, exactly?!
Price Target: Zero
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