$Gold/$Silver

One available chart that really tells the story over a period of time is the gold/silver ratio. This particular chart has a way of telling that a change is at hand is a major change in the correlation of the GBN.V share price and the gold/silver ratio.

The company declared commercial production, but all cash flow was subordinated to an escrow agreement since that time. The escrow agreement was not made public. All dore production was escrowed, and all expenses were paid out of the escrow account, with no cash flow recorded. All tallied accumulated liabilites on the balance sheet represent the escrow account. Thus the decline in the share price, since there are no earnings or cash flow.

There was a bottom in the share price in late 2008, and a rise in the correlation of the GBN.V share price and the gold/silver ratio over time, until the share price topped out in 2011. What I take this to mean is that the financial arrangements over the period of commercial production and now that destroyed the share price are timed out, and a new regime will be enlisted.

By that I mean that escrowing of production will probably continue. But the company is at a crossroads, with rival gold mining companies cashing up, and no leverage in the market where hostile bids are the norm, and usurious interest rates far above market are demanded by lenders.

But that GBN.V share prices may advance correlated with gold price advances during the onset of a coming market decline is given some backing by the position on this chart. The company is inclined to wait until August when the yearly financial report comes out, but time has run out.

Osisko bought out the undervalued Brett Resources with a hostile bid when they were trading @$12, will they now make a move on this property in the same way pension funds intervened on theirs?

http://scharts.co/1bZ1HW5

-F6