
	Home


	Biography


	The Path Of A Hungarian Immigrant


	Links


	Contact Us

RSS Feed

Click Here

Brilliant Mining Corp.

May 22 , 2007

(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.