WTF

Its no mystery that the brakes are on for this gold mining play. The brakes have been on since permitting issues came up.

The company is under some obligation to report on their quarterly financials, but when it comes to the yearly report, they can always re-adjust those numbers to reflect reality.

You have very similar events occurring a year apart to co-incide with the third quarter financials. In December of 2010, they had an unspecified "equipment problem" which directly affected the onset of commercial production. At the same time, they switched over to IFRS accounting rules. So we did not see the year end fiscal 2011 report until October.

This year we saw again an unspecified "equipment problem" at the end of 2011, which impacted Q3 fiscal 2012 results. Not surprisingly what follows is that the company is not under any obligation to report year end financials until the end of August, 2012. That means an interval of five months will elapse until you hear anything.

They have held off mining Komis and reporting on mine development at Lloyd for an extended period, when you would have otherwise expected the implementation of mining and reporting of expansion by now.

These people will say anything you might want to hear to your face, but go on underperforming as before. But they are proving to the market that gold miners are inherently risky and a lottery ticket at a time when gold miners are considered investor pariahs.

So the only thing you can expect is that long dated treasury bond prices will continue their decline for the next few weeks, and GBN.V shares rise for no other reason, except as a consequence of their strong inverse correlation with bond prices, and possibly rise in the aftermath of negative news from the third quarter financial report.

Should the gold bear bugs be proven wrong, this might also add some impetus to gold mining shares, as the bear camp fully believes that the gold price will fall to $1200/oz. The board of directors of GBN.V has probably arrived at a similar consensus, though they might be proven completely wrong.

This company has taken snatching defeat from the jaws of victory to a whole new artful level, but they will absolutely be caught flat-footed should a hostile bid arise. Conspicuous in their absence are the larger sell-side brokers' moving to close their wrong way bet against GBN.V. They too, like the board of directors of GBN.V, believe very strongly that the gold price will crash. But their ultimate concern is the bond price.

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-F6