via AU Report - Brent Cook

Brent's articles have always been a good guide on what's wrong with gold mining ventures. A good test of the La Ronge Gold belt is going through his list to see if there's really something wrong here, since the share price is such a disaster.

Knowing that production over the last two years has been diverted after the Waterton deal, and that Netolitzky probably had a major settlement with RBC in the last few minutes of trade in 2013 on the last taxable day, and that Bing Maps over the various project areas is showing activity not mentioned at all in the news releases, you can go through the list and see that GBN.V is doing the direct opposite of conducting a penny stock swindle.

It boils down to keeping other players out of their little sandbox, but might also harbour a certain amount of strain between the minority shareholder interest in the managing director, and the demands of the major shareholder. If you were to look for a cause for all this, it might be that financing costs being so prohobitive, that resorting to diverting production was the only outcome. You have to also remember that both Sprott and Netolitzky might have taken advantage of sell-side bias in order to profit, as they were sparring with one another.

The unexpected decline in $CAD vs. $US softens the blow, whatever the outcome, and is unusually positive in the context of La Ronge, and for the shareholders.

Au Report

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