Agoracom: Small Cap Investment - Golden Band Resources - Re: Charts & Comments

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Saskatchewan's SECRET Gold Mining Development.

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Fran Six

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Re: Charts & Comments - $TNX/!PRII Weekly

in response to

Re: Charts & Comments - Conclusion

Fran Six

posted on Aug 28, 2016 03:55PM

OECD Glossary Of Terms - Defeasement

This will be the last posting about Defeasement. Note that Defeasement is meant to ensure that bankruptcy is not to occur. Conversely you might say that a Defeasement might be used to ensure that a pro-forma insolvency is actually meant to be the outcome. But note that the Defeasement is closed with prepaying PROCON for the fourth year of the term.

Definition:

Defeasance is a technique by which a debtor unit removes liabilities from its balance sheet by pairing them with financial assets, the income and value of which are sufficient to ensure that all debt service payments are met."

If ALL of the gold mined is part of a Defeasement, then there would be no revenue from the mine, and thus its characteristic insolvency. By the same logic, that the Defeasement is presumably concluded after a period of six years since the summer of 2010, which absorbed all the revenue, in the form of capital raise, revenue should also begin to appear.

The pro-forma insolvency was a result of PROCON not being pre-paid $115m. in January, which took 90 days to default. But the prepayment was in order despite the pro-forma insiolvency, as they were paid in full.(or are to be) In lieu of their prepayment for a year's operations, they are holding all of the equity interest in Golden Band with one share worth $100.

https://stats.oecd.org/glossary/detail.asp?ID=6088

$TNX/PRII Weekly

The TNX/PRII Weekly chart is clearly engaged in the trough that was anticipated. Whether we'll see the 34-week EMA is open to question. On the bull market in gold, gold prices have been responding very sluggishly to the fundamentals, but sees a correction to the 13-week EMA only.

The TNX/PRII chart appears to have made an interim low, much like the low in fall 2010. The thing missing now is the rise in inverse correlation we saw at that time. The inverse correlation can rise, given that it has been chronically at extreme levels for some time.

The daily chart of the same indicator holds a clue, since the stochastic 7,7 is overextended, meaning that some other fundamental is meant to turn. Perhaps US dollar declines will continue as there was no EMA crossover on the weekly chart in the $US.