via Wikipedia.org - Revenue Recognition

Deferred, or pre-paid contractual obligations, long-term contractual periods with no cash flow, the conservative priciple of paying bills and how they are recorded when incurred, and accrual as the basis of accounting in IFRS.

When does revenue get recognized in all this?

http://en.wikipedia.org/wiki/Revenue_recognition

The conclusion that you might reach is that GBN.V is accumulating an inventory glut, to have gold sold at the close of long term contracts.

via BNN.ca - Saskatchewan Joins Ottawa For Federal Securities Regulator

Note that the Attorney General was contacted, not the office of the financial regulator.

Now that Saskatchewan securities regulation is going to be under federal oversight, this will hopefully enforce substantial changes to GBN.V's intensive secrecy campaign.

Saskatchewan was considered small potatoes by the print media.

My guess, though is that should GBN.V actually manage to come up with something, securities regulators will jump all over the company, since short sellers are faced with catastrophic losses.

http://www.bnn.ca/Video/player.aspx?vid=395301

via FT - Hedging At Polyus

“I don’t sense we are going to see any turn in hedging behaviour from the big guys,” said Tom Kendall, head of global commodities research at Credit Suisse.

“But there is an incentive for the smaller guys that are looking for project finance or development capital to use the recent bounce in the price to lock in financing."

It doesn't occur to anyone that a gold producer can build up an inventory glut amortized to long-standing agreements in accrual type of balance sheet:

FT.com Article

Lake Ice Blog

The lake ice blog will show you what holes look like in the ice.

http://lakeice.squarespace.com

One dead giveaway that lake ice was used as a drilling area over a frozen lake are tracks left behind by the vehicles.

You can see that in the 'C' cell of Mallard Lake, where tracks cross the smallest portion of the lake ice. This drilling was completed by spring 2012.

You can see an 'offramp' at the left, coming off the berm, ending in a drill hole, and tracks across this portion of the lake.

Be sure to use Google Chrome for an excellent full screen view @5m resolution:

http://binged.it/1qppylU

More Sources For Treasury Bill Rates

Nobody believes that rates can go nominal negative as they have in Europe, probably the source of 5am rallies in gold prices.

Should the market sell off, even a small correction can drive rates lower, into the negative:

http://ycharts.com/indicators/3_month_t_bill

http://www.barchart.com/economy/treasuries.php

-F6