Gold mining business eye-catching marine aquaculture downturn
It is a pity that the good performance of the gold mining business was unexpectedly covered by the sluggish performance of another core business-marine aquaculture. In the second half of last year, a large-scale demonstration riot in Hong Kong caused the local seafood sales to be completely stopped, and the farming business was unfortunate. Falling into a loss dragged the group to report a turnover of RM75.56 million in the same period, but the net profit was only RM3.36 million, which greatly covered the light of the gold mining business.
However, during the worst period when the farming business almost lost all sales, BAHVEST's performance remained positive (the third quarter loss was mainly due to the decline in the reasonable price of fish stocks and tax reimbursement), indicating that once the gold mining business enters the peak period, even if the farming business continues to be down It is also difficult to suppress the upward trend of the group's performance, not to mention that management also seems to have some calculations.
Societe Generale mentioned in its report last year that the management actually intends to divestiture the aquaculture business, so the bank did not consider the aquaculture business when calculating the valuation.
The author believes that the divestiture of the aquaculture business will be a potential catalyst for the stock price. In terms of the performance of the gold mining department, gold reserves and future prospects, listing as a pure gold mining stock should attract more investors, including institutional investors, and greatly improve the valuation .
Seafoods is long term like plantation , based on history no gold rush in Borneo under British company n Raja Brooke time. Are u sure there is mines. Coal Yez
Why doubtful? Bahvest did produce good amount of gold in last 1 year. I you think Bahvest is a fraud faking the numbers, please report to police and sue them to earn yourself millions.
bro,go check the optiro report in bursa malaysia website la,and bahvest already produced 800kg++ gold so far since they start mining business in 4th quarter 2018,many famous blogger,investor and analyst from investment bank already made several site visit last year, they want to see gold with their own eye and they did it.
so NO GOLD is no longer a concern as the gold had been proven and witness by large group of people.the question now is how much gold can bahvest produce in coming quarters,as they just started to mine the high grade ore that contain much higher gold by 4th quarter last year.
i am waiting for 1st quarter result to find some hints.
at 1700 usd per ounce,bahvest should enjoyed minimum 40% net margin from gold mining business,as the production cost of tawau mines is much lower than global peers.
in fact,when gold price hit 1500 per ounce,rakuten had predict bahvest could earn windfall profit of 40% net margin..now already 1700..if after MCO gold price still remain at 1600-1700 level,bahvest gonna be very rich.
Firerain, 1st quarter is a bad quarter for Bahvest. Embrace yourself for more losses from fish business, no construction of its planned ore processing plant that would have mine more gold, and no mining for half month in March, but have to pay a lot expense. And 2nd quarter started with 1 full month idling.
Don't be surprised if LKM Bahvest come out selling Rights asking for your money.
Wah so many people miss me :) Haha!! Now is mco so nothing much can be done la. The gold mine cannot open unless want to kena tangkap. So just relax first. Once mco lifted then will have some action. Also quarter report should be out by end of May now extended by 1 month due to mco. So it will be a bit boring at this moment... Just be patient and stay at home :)
How U doing Tommy? Working or staying at home? For me I'm just stucked at home. Boring. I just think nothing much will happen for Bahvest until the mco is lifted and they are allowed to work again at the gold mine. Just hang in there. Patience rewards :) Take care & stay safe...
commercial activities started to rise in malaysia,hope to hear some good news in coming week. gold remain extremely bullish in medium term,good time ahead:)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sftong2000
195 posts
Posted by sftong2000 > 2020-04-26 08:04 | Report Abuse
Thanks Jetko