GBN.V Weekly

Not much is likely to happen in either the bullion market or treasuries until the U.S. presidential election is over. Very likely dips in treasuries are being bought by the U.S. central bank, which means no advance in GBN.V share prices in the absence of buyers for the stock.

GBN.V management is clearly ensnared in their own conflict of interest, which is probably due to certain information not forthcoming about the Dickens Lake prospect. The desire is very clearly to run the company as if it were privately owned, while the shareholders are mere optionees in a share price rise that never happens.

They will continue as before, borrowing money they don't need to borrow, with no end in sight if only to stave off any prospect of a takeover through the settlement of equity swaps. But perhaps they also want to directly attack their own shareholders who are not even remotely supportive and present the biggest risk to them in case anyone actually comes up with the cash to buy the prospect out.

What is going on in mining as a whole is atrocious, with takeovers occurring by offering shares instead of cash. Shareholders in gold mining stocks offer no resistance whatsoever. That says that gold mining companies simply do not have the cash available to buy each other out. Shares instead of cash is being offered against grossly undervalued companies. And yet, they still don't have the cash to offer for a buyout. Nobody acts on the market, which is clearly being side-stepped.

supersize:

http://www.flickr.com/photos/11747277@N07/8102689763/sizes/l/in/photostream/

http://scharts.co/Vj6Kti

-F6