Brazil Minerals, Inc. (OTCBB:BMIX) Drops Even Further Down

Yesterday was the worst session yet for the much beleaguered Brazil Minerals, Inc (OTCBB:BMIX).The company has been on a downwards slide since mid-May when they were trying to pass the 1 dollar mark. Investors are still trying to shed their holdings dumping 1 million shares on Monday. As a result BMIX lost nearly a quarter of its value and dropped as low as $0.25. An hour before closing time they managed to find some strength and finished at $0.29, 10 cents lower than they opened.

The reason they were able to even reach the heights of last month in the first place was the start of a paid pump for the company. NBT Equities Research received $40 000 as compensation for their promotional efforts. They also took part in the pump for Western Graphite Inc. (OTCBB:WSGP) for the sum of $35 000. When the ticker crashed it was so disastrous that we even did a video coverage about it.

But what lured investors in were the distributed hardmailers for BMIX that are still passed around. This time the budget was considerably higher supposedly reaching $1.6 million. On May 20 the insiders decided the shares were at sufficient price levels and started dumping stock on the market, and haven’t stopped since then.

Some further elaborations is needed. On December 19 BMIX sold 2 million of its shares to 37 private investors for a total price of $2 million. A month later on January 22 the company made a 33 for 1 forward stock split and suddenly those 2 million shares became 66 million. Also we couldn’t confirm if the shares are restricted or not.

Another fact worth mentioning is that prior to the start of the year BMIX were known as Flux Technologies, Corp. and had no meaningful business activities. Their resurgence came when the acquisition agreement with Brazil Mining, Inc. was completed successfully. BMIX received mining and exploration rights in exchange for 35.7 million shares. So now after the first quarter of the year has ended, lets check what their financial results are:

• $637 thousand cash
• $1.4 million total assets
• $25 thousand total liabilities 
• $5763 revenues
• $176 thousand net loss

BMIX have finally been able to acquire some sort of revenue no matter how small it is. The company is expecting considerably better numbers for the next fiscal period when the rain season in Brazil will be over and their diamond mine should be working at full capacity.

BMIX is posting some encouraging news and in July they may rally and start climbing back again. Unlike most of the other pennystock mining companies at least they have conducted some sales. Pumpers may return to hype the stock in the near future so doing you due diligence and deciding on an appropriate time horizon is a must if you are contemplating playing this stock.