GBN:CN

The Bloomberg quote page which has the cash flow shows you where the money is going. This is not itemized for the benefit of shareholders.

The company is spending money on something, and not telling you what it is. They should be paying out dividends instead of bidding to control the payable prospects in the La Ronge Gold Belt. This is a crucial mistake.

http://www.bloomberg.com/quote/GBN:CN/cash-flow

Cost of Revenue was ~$13m. This is a whopping amount of money to spend for a paltry ~9k oz. of production.

Since the Cash From Operations was ~$5.76 m., you can assume the next quarter(Q4, fiscal 2012) will show that Cash From Operations will now be ~$7.2m.

The company lied about two things. First, the grade of the Riddle Till. This was an outright lie. Secondly, they gave indications that the mill would be operating at 700tpd. This was an outright lie.

They felt compelled to lie, because they are afraid of losing control of the La Ronge Gold project to an hostile bidder. They also desperately want to save face, since their competitors have fared well while they have grossly underperformed.

I want to see the hostile bid myself, so I can decide on my own whether to divest. Certainly the company has gone out of its way to disappoint investors and heavily impose on its shareholders.

To my mind, its a foregone conclusion that somebody will come along, look at the project and arrive at the same outcome. But they will look at how cheap the shares are trading at, make a bid for all of the shares in the company and buy it out for a song.

-F6