BNN.CA

Bill Harris

Bill Harris always has very cogent comments from an investor perspective and should be taken in. The timing of his investment strategy comes at a juncture in the markets when producing gold comanies with free cash flow are going to be the focus.

Market Call Part 1

http://watch.bnn.ca/monday#clip534826

Mr. Harris discusses San Gold in this segment. The lesson here should speak very loudly to GBN.V investors. The one salient fact about GBN.V that differentiates from SGR.TO is GRADE. Investors overlook grade. Grade is your trump card that beats size of mill, and geology trumps resource size.

GBN.V is obviously investing in grade and development rather than processing size and drilling off resource. You start at the outcrop, you find some mine some, then find some more.

The huge drawback is dilution. But the investor might look forward to dividends in lieu of share price appreciation. I think GBN.V is backed into a corner and cannot ignore the investor any longer. They have the superiority of grade, geology, number of deposits, life of mine/project, costs, location, growth prospects. So what will the GBN.V management do for the investors in the company, now that they will ostensibly have overwhelming free cash flow?

Market Call Part V

http://watch.bnn.ca/monday#clip534833

-F6