GBN vs. Gold

Just how undervalued is GBN.V shares have become vs. gold is confirmation that this particular stock has underperformed bullion dramatically over the years. The low point against gold was in 2008, but the recent low is only just a hair above it.

Partially at fault is the insane dilution of the stock. Apart from any other reason, this one fact stands alone as the most egregious errors in the gold mining industry, that gold company managements blithely and routinely brush their shareholders off with excuses. The reaction on the shareholders part has been to 'punish the stock.'(sell-side brokers notwithstanding)

Permitting issues are next. No other concern can so damage a gold mining stock as permitting issues. And no other gold mining stock has faced such a draconian, khafaesque regimen in the world. You would think this kind of ideological attack is only reserved for South American countries under the influence of Hugo Chavez. Only the Federal government stands in the way of development here.

Third, which is something I've complained about for years, is that whatever this company is sitting on, they're not saying, they're handing out information in piecemeal fashion. Its been a thin gruel for shareholders wondering just what they're investing in. They have no idea. Its all fine, should they pay out their shareholders in dividends, because they could continue to run the company as if it were a private concern.

The share price divided by gold gives you a very rough idea at how many multiples are in the cards should the price ever reach ~0.0026% of the gold price per share. (roughly 10X ROI)

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