Brazil Minerals, a
nicely diversified mineral producer focused on their projects in Brazil, the
flagship of which is the 55%-owned, producing Duas Barras diamond and gold mine
in Minas Gerais, reported sales today 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.
More data on Brazil
Minerals, Inc. is available at www.Brazil-Minerals.com
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