via Safe Haven - David Chapman

Sentiment has invariably been behind stocks, but not gold sector equities for a very long time. This would explain the outcome of the collapse in gold mining stocks, especially Canadian issuers, while the currency has declined, and gold prices stagnated.

The demand mania to acquire bullion redoubled, but people divested their gold stocks without a second thought. But gold miners are the producing asset, not the bullion.

Where I think gold miners failed is to endessly dilute their sharehoders and take every advantage the market could provide, instead of concentrating on cash flow and yield.

Since the time that gold prices were higher than $700/oz. CAD, GBN.V would be cash flow positive. At this point in time, that would mean better than 100% IRR.

http://www.safehaven.com/article/32932/gold-sentiment

-F6