Bradda Head Lithium (LON:BHL) (TSXV:BHLI) (OTCQB:BHLIF) shares are up over the past couple of days. One boost has been the announcement today of the mobilisation of a drilling rig to one of the properties: “Bradda Head", the North America-focused lithium development company, is pleased to announce drill rig mobilisation for its Phase 3 drill programme at the San Domingo pegmatite district, Arizona. This represents the second large-scale drill programme conducted in less than one year at San Domingo, underscoring the Company's commitment to exploring and unlocking the potential of our 23km2 land package within this highly prospective pegmatite district.” Well, OK, except that’s not wholly exciting. The district is prospective, they’re sending a drilling rig. Rather what we’d expect an exploration miner to be doing, exploring.
The other issue is the letter to shareholders: “In this letter, the Board wants to address the recent decline in our share price and provide an update on the status of our highly prospective Projects and emphasise why we believe our current share price level, which is significantly below our actual listing price, is undervalued and offers an extremely attractive entry level into Bradda Head.” Or, as we say in that headline, we’re doing great, honest - with the secondary insistence that now’s a great time to buy our shares.
Bradda Head Lithium share price from Google Finance
At which point two significant things for us to think about. Yes, obviously, if they actually find economic deposits of lithium then Bradda Head will be worth more. We might be bearish on the long term pricing for lithium - Bradda Head is much more bullish than we are but it’s differences of opinion that make markets) but there’s no doubt that a decent find - especially in the US - would be value additive. So. like every exploration miner the BHL share price depends upon what is found from the exploring.
But there’s this other issue, thee accounts. As we’ve said before about Bradda Head: “Bradda Head Lithium (LON: BHL) (TSXV:BHLI) (OTCQB:BHLIF) shares are down 17% in London this morning. This is a technical move and one that offers an opportunity for a small speculation. The specific and underlying speculation is that Bradda Head is telling the truth here. If that is true - note the if - then it's possible that there's an interesting little position to be taken.” That’s all about their inability to file the accounts in time to meet the TSX rules. But, umm, not being able to meet listing rules for the filing of accounts really is not a good sign.
Now, they do say they’ll be filed by the end of this month. But perhaps we should be waiting to see evidence of that?
