Balance Sheet

The following screen shot is a copy of a portion of the balance sheet represented via the Bloomberg financial app.

If the balance sheet is an accrual type balance sheet that represents a revenue-based financing as I claim, and that the Royal Canadian Mint is the counterparty in a swap agreement, then liabilities on the balance sheet are actually assets acquired by the mint. (est. $100m. per year.) Those figures listed as liabilities on the Mint Exchange Traded Funds balance sheet are assets accrued, or the money swapped for gold.

Cash raised by the mint for exchange traded receipts was swapped for unrefined gold with Golden Band Resources. The liability on the Mint's balance sheet is the $CAD value of doré received. The amount of cash traded for unrefined gold is on the mint's ETR balance sheet.

These liabilities so far add up to ~$400m. in total not counting the 2015 calendar year, but this counts only those assets reported during the calendar year, not according to the fiscal year. Thus there is an entire year of production missing, drawn from stockpiles.

The second counterparty is Sprott. Their ETF counts liabilities running into the hundreds of millions for each fiscal year 2011 - 2013. This does not appear anywhere on GBN.V's balance sheet or under any assumption anywhere. Asset run-down may be the assumption, but the swap with Sprott is where the revenue financing is taking place.

The mint is providing solely cost of revenue, which is exceed by double. It could be the assumption is 80k. oz. @$1000 per ounce, but the cost in reality is more like $400/oz. for 100k. oz.

The financing need not be tabled until completed, but the reason why there's such a protracted effort to destroy the value of the stock is solely to protect short interest in the stock.

http://bit.ly/1Kwun6l

-F6