GBN.V vs. Gold/GBN.V vs $USB

You have to wonder when they announced the pending mill closure what windmill this management is tilting at. Haven't they done absolutely everything necessary to pull the carpet from under the investment case already? If things are this preposterously bleak, maybe they should just shoot themselves out of pessimism.

"We've still not been able to work all of the bugs out, and then we got hit with the price of gold dropping that created a real problem for us."

Gold prices in the $1,200 to $1,250 per ounce range do not work, he said.

"We gotta have $1,400 (per ounce)."

http://ow.ly/rMmTs

Google Search

IF the gold price goes over $1400, this management is going to look unbelievably stupid, if they have not set off a political row in the local community already. It sounds like the bugs they want to work out of the system are the 'gold bug' - type investors hanging onto their mining shares. What would be the point of selling when people are averaging their purchases at much higher prices?

$CAD Gold Price

~$1310/oz. Not a long way to go to get to $1400/oz. They could manage to process less development muck.

http://scharts.co/17HxjtG

The only thing different this time around, is they did not wait to tell you they shut down the mill until months after the fact, or that they contrived to lose money by borrowing $20m which they didn't really need. They dropped the bomb right away in haste during tax-loss selling season and a gold price bottom.

Remember they resorted to a management production strike during the last gold price bottom.

You won't get a cheaper share price with ~3.25m shares on the over-alloted bid(more than ever seen before,) six times the allowable number. You would think that share prices would move up in this case, since there are only 51k shares on the offer at the close.

There's literally no way to be far wrong taking a position at these prices. It's priced like an out of the money option with no expiry date, where for only the very smallest quantity of money you can absorb the maximum number of shares.

A gold mining company trading @ 1¢ presumably in production foreseeably sitting on billions of dollars worth of gold?

I would say the people trading options on equity swaps derivatives are probably sweating it out more than the imperilled shareholder, much as the latest news is to their advantage, since they are unable to settle their accounts without buying shares at market.

http://scharts.co/1kvZ51E

-F6