"1848 and
Beyond"
posted
August 4, 2005
"An
African Queen"
posted August 11, 2005
"Near Hit"
posted August 16, 2005
"Orko
Gold"
posted August 18, 2005
"Mr.
Smith Goes To Hungary"
posted September 1, 2005
"A
Letter To
President Bush"
posted September 8, 2005
"Mr
Clarke -
Call In The Boys"
posted September 12, 2005
"Orezone"
posted September 23, 2005
"U.S.
Gold Corp."
posted September 29, 2005
"Mr.
Prime Minister"
posted October 13, 2005
"The
Business of Hungary is Business!"
posted October 31, 2005
"Then
And Now"
posted November 9, 2005
"50
Relatives Worse Than Yours"
posted November 14, 2005
"Bunker
Hunt-Silver-China"
posted November 28, 2005
"The
Currency of Mass Destruction"
posted December 5, 2005
"Sonesta
International Hotels Corporation"
posted December 29, 2005
"Northern
Star Mining"
posted January 16, 2006
"Other
People's Money -Enron & Martin Siegel, Esq."
posted January 28, 2006
"Your
Money Is Not Yours"
-Enron & Martin Siegel, Esq.
posted February 9, 2006
"A
Tribute to
Rudy Giuliani"
posted February 15, 2006
"Interview
with
Robert McEwen-
U.S. Gold Corporation"
posted February 22, 2006
"Sparton
Resources"
posted March 1, 2006
"Harvest
Gold"
posted March 2, 2006
"Midway
Gold
Corporation"
posted March 23, 2006
"Pocketful
Of
Miracles"
posted April 8, 2006
"J.P.
Morgan Offers Advice To Ken Lay"
posted April 11, 2006
"The
Principal Guest Was Missing"
posted April 25, 2006
"Ken
Lay's Legacy"
posted May 8, 2006
"Gateway
Gold:
It's A Gold Story"
posted May 15, 2006
"Northern
Star
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"Oil
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"Silver
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posted August 28, 2006
"A
Matter of Reasonable Doubt"
Ken Lay - Enron
posted August 30, 2006
"Brilliant
Mining Corp."
posted September 17, 2006
"The
Kennedy-Nixon debate revisited"
posted October 4, 2006
"The
Arrival of the
Nickel Billionaires"
posted October 18, 2006
"Global
Options
Group, Inc."
posted November 1, 2006
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Year I'm Voting For Dick Nixon"
posted November 7, 2006
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Mechanical Services, Ltd"
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"Entree
Gold Inc."
posted December 13, 2006
"WisdomTree
Investments, Inc."
posted December 26, 2006
"My
Father Died In Auschwitz"
posted January 19, 2007
"Lexam
Exploration, Inc."
posted February 11, 2007
"Robert
Friedland -
The Man of The Year"
posted February 21, 2007
"Rubicon
Minerals Corp."
posted March 1, 2007
"Warren
Buffett - Franklin Roosevelt"
posted March 15, 2007
"Golden
Valley Mines, Ltd"
posted April 21, 2007
|
|
BERAL,
INC.
Andrew G. Racz
Director of Research
300 East 54 Street, Suite 26C
New York, New York 10022
Telephone: (212) 319-6949
Fax: (212) 753-1944
E-mail:
mlikar@aol.com
May
22 , 2007
BRILLIANT
MINING CORP.
(BMC.V)
Price:
C. $2.66 |
|
|
U.S.
$2.43 |
|
|
Note:
The company is listed on Tier 1 on the
Toronto Venture Exchange (TSX). |
|
As
of May 30, 2007
|
|
Long-term
debt
|
|
|
|
| |
Convertible
debenture* |
$3,772,727 |
|
|
| |
Shareholders'
equity |
$21,512,499 |
|
|
| |
|
|
|
| *10%
coupon |
|
| Conversion
price: C. $1.00 |
|
|
The future of Brilliant Mining is complex.
It has a bright future of a nickel mining concern,
but
its financial structure, once simplified, creates
unusual values. |
|
International Nickel, a Vancouver-based company
whose main operation is a 25% partnership with a nickel mining
entity in Perth, Australia, itself a public company in Australia,
is in the mining business.
The company was incorporated under the Alberta Business Corporation
Act on October 1, 1998 and has its shares listed for trading
on the TSX Venture Exchange. In the period ended June 30,
2006, the company acquired all of the issued and outstanding
shares of a private Australian company, Donegal Resources
Pty. Ltd. Donegal has a 25% interest in the unincorporated
Lanfranchi nickel mine.
Potential
Shares Outstanding
May
30
Shares Outstanding |
60.0M |
Warrants Outstanding
($.69 Exercise Price)
|
15.0M |
Convertible
Debentures |
4.0M |
|
80.0M |
|
It is expected that all warrants and convertible
debentures will be converted in 2007, and the company will
receive $12M.
Brilliant Mining corp. is an international nickel explorer
and producer. The company holds a 25% interest in the Tramways
Tenements Project, host to the producing Lanfranchi Nickel
Mine, located in the world-class Kambalda Nickel District
of Western Australia. Kambalda is ranked third in the world
for nickel production, with Lanfranchi contributing close
to 10% of the Kambalda region's historic nickel production.
Mining at the Lanfranchi Mine has increased from 200,000 tons
of nickel ore in 2006, with current projections to produce
280,000 tons in 2007 and 350,000 tons in 2008. With the Lanfranchi
Mine in Australia and early stage projects in Canada, Brilliant
is capitalizing on nickel opportunities from exploration to
production.
Calculating at the current market price of $50,000+ per ton,
the Lanfranchi Mine is a meaningful entity.
|
|
lb,
produced |
Gross Revenue
|
|
2007 |
200,000 |
$10B |
| 2008 |
280,000 |
$14B |
| 2009 |
350,000 |
$17.5B |
|
1) Brilliant's 25% participation is currently
250,000 lb./month. By December 2007, the monthly
allocation would increase to 500,000.
2) The current market price (spot) is $22 - $24 per pound.
3) On August 1, 2007, the $7.00 hedge price will disappear
and the $22+/lb. sale price will apply.
Accordingly, we expect an unusual per share earnings increase.
Over the years, we predict a meaningful
cash accumulation of the company.
PROFIT
POSSIBILITIES |
| (Calculated
on a monthly basis)
|
| Monthly
shipment |
250,000/lb. |
500,000/lb. |
| Sales
price |
$22 |
$22
|
| Revenue |
$5,500,000 |
$1,000,000 |
| Cost |
$3,750,000 |
$7,500,000 |
| Profit,
pre-tax |
$1,750,000 |
$3,500,000 |
| Net
profit |
$1,000,000
|
$2,000,000 |
| Per-share |
12.5¢ |
25¢ |
Annual rate
|
$1.50 |
$3.00 |
|
POTENTIAL
CASH ACCUMULATED BY BMX |
|
|
|
2007 |
2008 |
2009 |
|
<---------------------
($, MIL) ----------------------->
|
Current
balance |
5.0 |
19.0 |
43.0 |
Exercise
of warrants, bonds |
10.0 |
- |
- |
Surplus profit 5M
|
7.0 |
24.0 |
24.0 |
12
months in 2008 and beyond |
19.0 |
43.0
|
67.0 |
|
EVALUATION
FINANCIAL BREAKDOWN
Assuming the operating assets are worth: $3.00
EPS in 2008, if $3.00 is worth $1.50
Cash, discounted till 2010, amounting to $100M $6.00
There is a valuation of $6-10 per share $10.50
Optimistic as it may be, with the possibility
of $100M cash in BMC in four years, the company is attractive
both for speculators or private equity investors.
DISCLAIMER
Information
contained herein is based on data obtained from
recognized statistical services, issuers reports
or communications or other sources believed
to be reliable. However, such information has
not been verified by us and we do not make any
representation to its accuracy or completeness.
Any statement non-factual in nature constitutes
only current opinions which are subject to change.
BERAL INC. or their officers, directors, analysts
or employees may have positions in the securities
or commodities referred to herein, and may as
principal or agent buy and sell such securities
or commodities. An employee, analyst, officer
or a director of BERAL INC. may serve as a director
for companies mentioned in this report. Neither
the information nor any comment expressed shall
constitute an offer to sell or a solicitation
of an offer to buy any securities or commodities
mentioned herein. There may be instances when
fundamental, technical and competitive opinions
may not be in concert. This firm may from time
to time perform investment banking or other
services for or which investment banking or
other businesses from any company mentioned
in this report |
|
Andrew Racz
(Article
52 - posted May 22, 2007)
e-mail: mlikar@aol.com
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