RE:Assets = Liabilities + Shareholders' Equity>> increased mine life /production -> increase SE? <<
Yes if the increase in mine life oz is more than the cost of drilling.
Increased production of profitable oz increases cash which is an asset, so SE increases.
>>decrease debt -> increase SE?<<
Yes.
>>increase SE -> increase common share price?<<
Not necesarily, but follows in that direction.
Shareholder's Equity is the same as bookvalue unless there are intangible assets like patents or goodwill
https://economics.stackexchange.com/questions/10270/what-is-the-difference-between-shareholders-equity-equity-and-book-value I don't see intangible items in GCM financial statement, so SE = bookvalue for GCM.
And as we all know GCM is trading way under bookvalue.
>> So what exactly is the catch for GCM? <<
There is no catch. Just extreme undervaluation and extreme fear such as from ReverseSplitIdiots. People slow to recognize a turnaround. It wasn't long ago that they were near bk until their debt was restructured, so that is still fresh in some people's minds. How else can you buy an undervalued company if there isn't some fear around it?
People ask what is wrong because they are so prejudiced to think that the markets must be efficient. Once you let go of this prejudice, you can accept that a company can be undervalued.
>>Does this just require some patience?<<
Yes, all stocks require patience, not just GCM.
InternalAudit68 wrote: Does this mean the following:
increased mine life /production -> increase SE?
decrease debt -> increase SE?
increase SE -> increase common share price?
So what exactly is the catch for GCM? Does this just require some patience?