By Thomas Kerr, CFA
NASDAQ:BGL
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Blue Gold Limited (NASDAQ:BGL) is believed to be the world’s first vertically integrated gold platform that includes mining, tokenization, and digital wallet capabilities. The company is due to launch the world’s first global, gold-backed stable coin in the 1st quarter of 2026, the Standard Gold Coin (SGC). This will be followed by the planned launch in the 3rd quarter of 2026 of its own digital wallet called One App for use by token holders. The gold that will be used to support the digital operations will be sourced through the company’s proprietary gold trading operation in the UAE, and in due course, it plans to supplement this with gold produced from its own mines.
The company plans to launch its own gold-backed stablecoin called the Standard Gold Coin (SGC) in the 1st quarter of 2026. This is a gold-backed token based on vaulted bullion directly linked to each token on the blockchain and regularly verified by an independent auditor. The company plans to build SGC into the world’s first global, gold-backed digital currency.
To facilitate the use of SGC as a means of payment, the company is developing its own digital gold wallet and payment platform, which it plans to launch in the 3rd quarter of 2026 (the One App). The One App will enable customers to hold and spend gold through everyday transactions. By pairing SGC with a gold-backed debit card, the company hopes to return gold to being a means of payment, rather than just a store of wealth in a vault.
The gold that drives the digital platform will be acquired through the company’s proprietary gold trading operation in the UAE. Eventually, the company plans to supplement this with production from its own mines. It owns the disputed lease over the Bogoso Prestea gold mine located in the Western Region of Ghana, approximately 125 miles from the capital Accra and 30 miles from the coast of the Gulf of Guinea. Bogoso and Prestea is a 5.1 million ounce concession in measured and indicated resource and a 0.9 million ounce concession in inferred resource.
The company has an experienced management team covering both the fintech space and gold mining and trading. The company’s corporate offices are in London with working locations in Wyoming, the UAE, and Ghana.
Valuation
We utilize both Price / Revenue multiples relative to crypto peers as well as a long-term Discounted Cash Flow (DCF) to create a target price for BGL stock. Separately, we also add a scenario analysis to create a range of values for the Bogoso Prestea mine.
We apply an 11.1x revenue multiple to the stablecoin business, which is at the low end of similar token and crypto company valuations. We apply a 12.0x revenue multiple to the Blue Gold One segment, which is similar to credit card companies such as MasterCard (MA) and Visa (V). We apply a 5.0x P/E multiple to the estimated net profits in the Blue Gold Vault gold trading segment.
Our Discounted Cash Flow process, based on conservative growth and profitability estimates, creates a DCF-based valuation target of approximately $21.00 per share. Our target price may be conservative as it incorporates a high discount rate of 15.0% due to the unpredictability of earnings, new business model, prevailing interest rates, and the timeline for reaching net profitability.
Based on this range of values, we arrive at a near-term price target of $20.00 per share. As the overall ecosystem model proves itself after the 1st full year of operations, there appears to be substantial upside above that price target as noted in the chart above.
Although we have not incorporated the value of the Bogoso Prestea mine into our price target at this time due to its non-operating status, we believe it’s worth noting for investors the possible long-term potential of the mine. The scenario analysis is based on the Life of Mine model underpinning the 2024 S-K 13000 Technical Report Summary prepared by Wardell Armstrong, and adjusted for different gold prices and discount rates. At any gold price above $3,000, the NPV of the mine exceeds the current market cap of Blue Gold. Using the Spot Price scenario ($4,121/oz) and an elevated Discount Rate of 20% (to reflect the development stage of the project), that would add approximately $32 to the target price per share.
Summary
We believe that going forward, Blue Gold Limited is poised for rapid revenue growth over the next 5-10 years due to successful execution of its digital ecosystem and the creation of a dynamic gold backed stablecoin. The technologically advanced platform that is being developed is essentially occurring now, with the Standard Gold Coin expected to be launched in the 1st quarter of 2026 and the Blue Gold One platform to be rolled out in the 3rd quarter of 2026.
The whole operation will be fed by gold acquired through the company’s proprietary gold trading platform in the UAE and may eventually be supplemented by gold produced from its own mines in Ghana.
The company’s current stock price does not likely reflect that potential level of profitable growth going forward when these platforms generate positive cash flow and net earnings.
We believe our primary valuation method of peer company Price / Revenue multiples provides a conservative price target of $20.00 per share. This peer multiple valuation is supported by our Discounted Cash Flow valuation that incorporates conservative growth rates and a high discount rate.
BGL stock appears to be significantly undervalued at this time and represents material upside for investors going forward
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