QualityStocks would like to highlight Brazil Minerals (
OTCQB: BMIX), a diversified mineral producer focused on projects in Brazil, the flagship of which is the 55%-owned, producing Duas Barras diamond and gold mine in Minas Gerais,. The company's goal is to become a premier diversified mining company focused on Brazil. Their team combines over 100 years of collective deep and local Brazilian mining experience, centered on personal relationships, cultivated face to face, in addition to team members who come from the fast-paced, quantitatively-driven world of private equity and venture capital. The aim is to mix the transparency of the U.S. capital markets with the strong respect for property rights afforded by Brazil.
In the company’s news,
Brazil Minerals reported sales of a sizeable lot of GIA-graded polished diamonds to a U.S.-based operation, marking the first sales for BMIX of gemstones above rough diamond quality out of the Duas Barras operation.
Moreover, this sale marks a decided shift from selling unpolished diamonds and gold output only to the local Brazilian markets, a key milestone in the site’s evolution and a clear indicator of the considerable progress made by this relatively young company. BMIX is well situated in Brazil too, with 100% of a 24.7k-acre gold project in Amazonas state and key interests in some exciting vanadium-titanium, as well as iron development (see Piauí and Borba projects), giving shareholders a comfortable cushion for both overall stability and long-term growth upside.
Looking at the most recent video by BMIX out of their Duas Barras site, operations appear robust, with the impressive gold and diamond processing plant (originally built back in 2006-2007 by Vaaldiam Resources for around $2.5M) churning away. The company also landed a nice look from veteran analyst and institutional trader, Joseph Ramelli recently over at Seeking Alpha, further throwing light on this undervalued stock, whose price has been depressed alongside many others as precious metals have remained cheap. Emphasis on diamonds has been good to BMIX from a purely operational health standpoint and with only around 16% of revenues attributable to the gold produced, relatively stable diamond prices form a nice hedge that markets seem to be missing.
With the first lot of GIA-graded polished diamonds out of Duas Barras clocking in around $5.4k/carat and showing some nice high-grade stones in the mix (highest color value was an F, or basically #3 on the ranking scale) featuring exceptional clarity (VVS1 was the highest, which is right under top clarity rating of internally flawless), BMIX is primed for more sales in future to eager buyers. The unsolicited offer so soon after the public announcement of valuation a few weeks ago speaks volumes about where the company is headed and the particular eagerness of the U.S. group to close (receipt of funds by BMIX was last week), on what were mutually favorable terms, is a clear indicator that the two parties will likely be doing more of such transactions in coming months.
Chairman and CEO of BMIX, Marc Fogassa, pleased by the quality of stones being produced at Duas Barras and emboldened further by this snapping up of the first GIA-graded lot from a hungry U.S.-based investor group, understandably boasted of the exploits and successes of the company, which is essentially only a year old with its current team and focus. Fogassa made it plain to investors that mounting revenues from rough diamonds, as well as gold and now polished diamonds of good quality, further stabilized by the fact that they are now also generating revenues from the U.S. in addition to Brazil, collectively makes the outlook for BMIX quite bullish. Fogassa is obviously pleased with the company’s progression and even with stagnant PMs there is a real story here for investors to tune in to.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
