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Saskatchewan's SECRET Gold Mining Development.

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Fran Six

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U.S. Treasury Bond Auction

posted on Feb 06, 2012 11:49AM

U.S. Treasury Bond Auction

As absurd as it may sound, the results of the coming bond auction in long dated treasuries is likely to have a material impact on GBN.V share prices.

Of course, Netolitzky and co. might actually be working on a contrived quarterly loss. Without any real details on what the company spends its money on, the company can use IFRS to their advantage. This wouldn't surprise me. But what would surprise me is that despite either no reaction to news or declines on positive news, we get a rise on negative news.

Of course, this is the wrong strategy. The strategy should be to pay out dividends. Gold mines during the depression were given all of their capital up front by the exchanges, which were run by the brokerages. They traded at 'par value' with no real share price appreciation at all. But once they were in production, they paid out any and all net and comprehensive earnings over and above cost of revenue. Essentially they were little cash-generating machines if they managed to get going for the brokerages.

The quarterly reports are showing that the company is basically getting two dollars out for every dollar put in. This is an unheard of internal rate of return. No debt to speak of, lots of room for growth, start mining at the outcrop, no permitting issues, First Nations participation, no unionized workers, no political jurisdictional issues, mining-friendly province. The company claims in a roundabout way that it will not be diluting any further. They have no need to diversify abroad, either, because the sum total of the deposits are basically to die for in the gold space. Each one of their deposits can carry the company indefinitely. And I don't say this lightly. If you were a gold miner, this would be your cup of tea.

'Rob Garden, President of the Board of Golden Band commented, "We genuinely believe in the great potential of our gold deposits under development. While interested in developing these deposits as quickly as possible, we will only do so on terms that make sense from a business perspective and that are in the best interests of our shareholders. We will continue the development of these deposits on schedule using cash flow from operations while continuing to pursue other opportunities."

source: Golden Band News Release

So we wait for the bond market.

U.S. 30-Year Bonds Fluctuates Before the U.S. Sells $72 Billion in Debt

By Susanne Walker - Feb 6, 2012 10:58 AM ET

Treasuries fluctuated, with the yield on the 30-year bond near the highest level in more than a week, as the U.S. prepares to auction $72 billion in notes and bonds this week.

Bond yields gained the most in more than one month Feb. 3 after the U.S. reported more January jobs gains than forecast. The U.S. will sell $32 billion in three-year notes tomorrow, $24 billion of 10-year debt on Feb. 8 and $16 billion of 30-year bonds the next day. Ten-year notes gained in earlier trading after Fitch Ratings said a Greek disorderly default “cannot be wholly discounted.”

“Supply is definitely on the radar,” said Justin Lederer, an interest-rate strategist at Cantor Fitzgerald LP in New York, one of 21 primary dealers that trade with the Federal Reserve. “It’s always tricky to gauge where the auctions will go. The 30-year is always the wild card.”