Bluebird Merchant Ventures

Potentially industry leading gold producer in South Korea which is now on the cusp of a 100,000oz pa low-cost production profile

Bluebird Merchant Ventures is a South Korea-focused resources company which is bringing old gold mines back to life. It is far quicker and cheaper to rehabilitate old gold mines than fund exploration, mines where production was curtailed a couple of decades ago due to a low gold price (under US$140/oz). Recently, Bluebird gained a binding agreement for a US$5-20m gold streaming style deal to fund reopening its gold mines.

  • Bluebird set to gain a 100% stake with production starting in Q1 2021

    Bluebird is expected to commence gold production in 2021 with a swift trajectory to 100,000oz pa (as BMV plans to buy the remaining 50% stake) by 2025. At attractively low operating costs of US$576/oz, this could be a big money spinner. In a country which has a highly pro-mining government.

  • Fantastic timing as gold is forecast to hit US$3,000 in 18 months

    There could be no better time to be a junior about to commence gold mining as experts reckon that the looming recession will be the deepest peak to trough decline in recent memory. Bank of America has recently published a report saying that gold could surge to this all-time high by the end of 2021 due to record bank balance sheets/government fiscal deficits.

  • Proven model to smartly move the project up the valuation curve

    Colin Patterson (CEO) and Charles Barclay (COO) have developed a cracking business model. In 2010, the Apex Mine (Philippines) was acquired for $7m, reinvigorated by the team and 2 years later received an offer for $180m from a major. Bluebird bears all the hallmarks of being Apex Mark II.

  • 50% Risked NPV at a 12% discount rate suggests upside of nearly 800%

    We believe our NPV valuation is very conservative and update coverage of Bluebird with a target price of 34.79p and a Conviction Buy stance.

    NOTE – Our valuation does not take account of the proposed purchase price for the remaining 50% of the project which has yet to be determined. 


    Bluebird Merchant Ventures (BMV) is a research client of Align Research. Align Research holds an interest in the shares of BMV. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research. No international codes have been used in the preparation of this report and as such the report should not be relied upon as an indication of present or future valuation

Table: financial overview.
Year to Dec 2020E¹ 2021E 2022E 2023E
Revenue (US$’000) - 13,650 29,250 55,580
PTP (US$’000) (1,950) 8,420 19,410 37,100
EPS (c) (0.52) 2.10 4.72 8.92
Source: Company accounts & Align Research ¹18 month period