GBN.V Weekly Chart

We had a new low on the 52-week trading range, which was 22.5¢. The company is being assigned an arbitrary value below its Net Present Value + Assets.

The weekly log scale chart is confirming that the low could materialize with parallel lines entered long ago. The low of Dec. 2008 is now the touch point for a new presumed low.

The company has a nuclear option on its hands, in that it can pay for its own development and at the same time, pay dividends. As I have stated before, they could pay out 0.8¢ a share if they wanted to for Q2 from the net and comprehensive earnings on the net issued and outstanding shares without impairing their development plans in the least. I think they've painted themselves into a corner with little other choice in the matter.

So far, on all of the available news releases during October and November of this year they've fired blanks and continue to shoot off blanks. What this leaves the company open to is an hostile bid. The shareholders are 100% likely to capitulate after seeing a new low and that no positive news is moving the share price, and that the management are casual and indifferent diluters of the float.

We are in the second month of Q3 fiscal 2012, and still no reporting on tonnages, grades, assays taken months ago from Roy Lloyd even though they have their own core lab. Nothing new here.

The developmental deficit weighs on the stock, but if you took the Net Present Value of solely the cost structure of $900/oz. and discounted negatively on 70000oz. production, you would still have a company that can pour almost $800m. dollars into development and operations over 10 years.

As follows: cost/(1 - (%dilution + rate of recovery discount - % average gold price advance over the next 10 years)) X 10 years.

So $63m/(1 - (20% + 9% - 10%)) X 10

This is the project in a nutshell. Rates of production and grades are extremely important here, which the company does not seem to want to report. Too bad, bring on the hostile bid. Or stop screwing around with news releases and start watching the bond markets for the turn and the best timing.

Or pay a dividend, you schmucks.

supersize: http://www.flickr.com/photos/11747277@N07/6550922473/sizes/l/in/photostream/

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