BAHVEST (0098) - Gold is going to break All Time High! What is the Defensive Stock can be found in KLSE?

 
Gold and silver prices in India continued their rally, lifted by a surge in global rates amid Middle East tensions. On MCX, gold futures prices on Friday surged over 2% or ₹850 to ₹40,130 per 10 gram, adding ₹2,000 per 10 gram in just two weeks. Tracking gold, silver prices have also surged, closing 1% higher at ₹47,520 on Friday.
 
While US started First Day of retracing from All-Time High, Gold is still going up. Means that market still look for another safe instruments like Gold.
 
Ok.
 
What is the next to invest in KLSE that related to GOLD ?
 
Check BAHVEST chart below! Last Friday, we spot Bahvest actually gap up on Morning Sessions and Afternoon Sessions. The Volume is surged.
 
Despite the closing not very promissing, but we expect once Bahvest break resistance 0.565, it will follow the next resistance at 0.595.
 
 

 
If you noticed, the Bahvest-Wa is not retracing much! 
 
Please take note that Warrant always run faster than Mother Share. We still maintain our TP at Bahvest at 0.625 in 1 - 2 weeks time. 
 

 
Lets recap on BAHVEST.

http://www.bahvest.com.my/invest_rel/annualrpt/Bahvest-AR2019.pdf

 

Prospects & Outlook for Bahvest in the Annual Report.

 

简易基础分析 BAHVEST(0098) -
近期国际局面动荡，导致黄金价格飙升，很多人都表示失去了机会。那今天我们就来看看马股中有挖矿的公司，看看能否找到投资的机会。
 

基本面 
-公司前名为Borneo Aqua, 之后改名为BAHVEST
-BAHVEST是从竞争激烈的水殖业务转战采矿业
- 在2016,公司被注入沙巴斗湖占地317.7公顷的采矿业务
-2018年9月初次采集23.69公斤黄金，而在今年5月月产达54.29公斤
- 据丰隆研究预计其28公顷采金地段料可支撑超过15年的盈利
-下图显示是这几个月来的黄金白银存货
-短期内如果黄金的价格一直上涨，会带动公司的盈利

 

We are positive on Bahvest Resources Bhd (“Bahvest”) gold mining activities and their current share price weakness makes it an attractive proposition as it is set to ride on current gold price upcycle. BUY with a target price of RM0.68 premised on average 2-year P/B of 2.4x at an implied 14x PER FY21 which is below the regional average of listed gold mining companies of 22x.

Bahvest’s foray into gold mining is expected to pay off when it realises the potential by 2020 and will see significant earnings accretion by FY21 with up to an estimated 100kg of monthly gold production as compared to the average of 50kg currently. In August 2018, the Company started its mining operations in Bukit Mantri with a maiden production of 23.69kg of gold via a sustainable open pit mining concept that is more cost effective as compared to underground mining.

Bahvest literally strike gold when it acquires Wullersdorf Resources Sdn Bhd for RM96m by issuing shares to major shareholder Dato Lo Fui Meng. The asset is a sub-lease term on a tract of mining land measuring 317.7ha in Bukit Mantri Tawau Sabah with mining rights until September 2048 or another 29 years. To-date Bahvest has invested close to RM50m to set up gold extraction and processing plant with daily production capacity of up to 1,200 tonnes which could produce in excess of 100kg gold monthly. They have identified 28ha of mining area that should sustain them for the next 10 years by just focusing on the top 200 meter of the hill surface anticipated to contain a total gold reserve of 207,000 troy ounces as indicated by the Joint Ore reserves Committee report, issued by Optiro, an independent mining consultant in Perth Australia for the acquisition of the said asset Wullersdorf back in 2017.

For the 1H2019, Bahvest has extracted a total of 296.44kg of gold. Bahvest’s cost to extract per ounce of gold is estimated to be USD430 making them an efficient producer even despite a relatively short 2 year track record. The recent bullish run on gold price to current level of USD1,500 per troy ounce should be an unexpected windfall for Bahvest when it decided to venture into gold mining back in 2017 when prices were just below USD1,200 per troy ounce then. We believe the lucrative earnings from their gold mining will be the catalyst that may transform Bahvest into a pure gold play with an expected net margin of close to 40%.

Source: Rakuten Research - 21 Oct 2019

https://klse.i3investor.com/blogs/kiasutrader/2020-01-05-story-h1482034873-Gold_is_going_to_break_All_Time_High_What_is_the_Defensive_Stock_can_be.jsp