Our old friend, Graeme O’Neill of Bayhorse Silver (BHS.V) has just booked motherlodetv.net for the next few months. Bayhorse has been a client before and only books when there is hard news in the offing.
A scan of the Bayhorse website gives pretty big hints as to what is coming up. The Bayhorse Mine in Oregon is a bit snowbound but, in the web Christmas card, you can see dozens of tote bags. Each bag is about one ton of pre-concentrate, that is rock which has been mined, crushed and run through the ore sorter. Bayhorse is set up to sort its rock so that barren, waste, rock never leaves the mine site.
Also on the Bayhorse website are videos and photographs of the construction of the Bayhorse production facility in Idaho. This facility will take the pre-con and turn it into high grade concentrate which will be sold to the company’s offtake partner. From the material on the website it is a pretty solid bet that concentrate will be produced before the end of January.
It has been a long road for Bayhorse shareholders (of which I am one). Long because O’Neill wanted to get the mining, processing and production right. Long because the project has had to be funded at every step along the road in markets which have been, to say the least, choppy. COVID has not helped.
The news flow over the next few weeks should confirm initial production of concentrate and then, as things ramp up, sale of that concentrate and regular production updates.
As I write this, Bayhorse is trading at 0.10. The company has no debt. Its “pay as you go” strategy means that when it sells its concentrate, after expenses, the revenue goes straight to the bottom line. When the market realizes that Bayhorse is an operating silver mine it will certainly “re-rate” Bayhorse Silver as a producer. And as production figures are released there is every reason to think we will never see $0.10 shares again.