Due Dilligence

This stock will require more than your normal level of due dilligence, because the company is witholding key information. No value proposition has been made to date. However, the link library, the profile, and the photo library will provide enough information that you can determine the quality of the assets.

The whole prospect is essentially unmined and starts at surface, with years of service life before it. Very highly likely that the company has raised sufficient capital through escrowing 75% of production over four years for a growth phase. THE document which contains information for this presumed growth phase is the modification to the Metals, Mining and Effluent Regulations Act. Under the cost benefit analysis, it clearly states they are planning for 25 years of production.

Per share earnings @$1400 CAD/oz. after taxes and costs should be about 28¢/share., based on the net present value of ounces produced over the four year commercial production period, for a given average year of production. That means fair value of the stock would be ~$3.00 per share.

When the company says they are in care and maintenance and that operations have ceased, this should be taken with a grain of salt. They are lying.

$ONE:GBN.V Weekly

As U.S. treasury bond prices have surged, GBN.V share prices have declined to match. Very likely GBN.V share prices are a function of equity swaps that value GBN.V shares in terms of $US treasury bonds.

A reverse split means that share price declines can continue unabated, but the shares will value according to the advance in treasuries, which will remain persistently firm, and yields remain chronically thin. The chart is a very good demonstration of how shares prices are being fixed accordingly.

GBN.V can afford to pay a yield of 2¢ a share per month, or 24¢ a share per year, based on an average $1400/oz. CAD gold price, after taxes and costs. Yield is the only way that GBN.V share prices can get out from under the derivatives market.

The inverse correlation with the gold silver ratio is becoming almost one for one, which is technically a buy point. Perhaps the company's proposed reverse split will guarantee a further reduction in share prices to match, which should see shares trading in the 5¢ range after a 10:1 reverse split, only because it has to be commensurate with moves in U.S. Treasury prices.

The inverse of GBN.V share prices has remained true to form, and demonstrates the theory that share prices are a function of massive leveraged short positions in equity swap derivatives. All of the publicly held float is sold short. Notable to the discussion are shares that are offered with declines in the Dow Jones, but then pulled when U.S. indeces rise.

Netolitzky as the managing director with minority control over the company is clearly pandering to this interest. But one thing he cannot allow is bankruptcy of the company, since he would lose the asset.

http://scharts.co/16dStif

$Gold Weekly

A move in the gold price will clearly make a big difference, especially if the bull market continues. It would appear a layup for confirmation of a triple bottom breaking out to the upside should there be a weekly close above the 89-week EMA.

If a triple bottom is allowed in elliot wave terms, then the Wave One extension paradigm holds, but so far, I think this has been 'blown.'

That means that lofty gold prices people are banking on are not in the cards and people will have to reduce their expectations. That also means that gold companies as the producing asset are favourable over bullion.

http://scharts.co/1vwVyGL

via INO.com - Dec. 2014/Jun 2019 Spread

Spreads have continued to narrow, taking a pause on the close this week. Still a lot of headroom for this market to advance:

http://quotes.ino.com/charting/index.html?s=NYMEX_GC.Z14_M19.E&t=l&a=0&w=1&v=dmax

Notable to the discussion is that Silver futures had long been in backwardation, and spreads are widening. Gold prices should continue to advance against silver.

-F6