NYSEAM:GORO - Post by User
Post by
2511MacDonaldon Jul 01, 2013 12:55pm
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Post# 21582867
Bargain Bin
Bargain BinAt the recent $7.92 low, the company has a market cap of just $400 million. At $8.00 per share, the annual dividend of $0.36 yields 5%, at $9.00 per share, the dividend yield is 4% and at $10.00 per share, the yield is 3.6%. At the current quoted price of $9.00 per share, the1 million ounce gold resource is trading at just $450 per ounce in ground. Much of the trading is related to the current short position of 3.6 million shares. Expect volatility until this short position is closed out. Not much discussion yet on the new high grade discovery. Can't see enough volume to close out this short position for at least 6 months. It will cost $110,000 per month for the sellers to cover dividends on this position. Believe that the hedge fund financing this operation is based in Toronto.