RE: RE: Some factsGBB nor any gold stocks right now on trading based on fundmentals or technicals.
They are trading the majority of their shares currently based on emotion and fear and until the TSX Gold Index has put in a bottom the junior golds will continue to lag and bounce off their supports.
The TSX Gold Index closed today at 363 points or the same price it was at this August when gold was trading at $1345/oz.
Today gold closed at $1505/oz or $160.00 dollars higher than August of last year yet the Index is still the same price.
The interesting thing about this fact is that whole $160 dollars on the price of gold is profit for gold companies. Their cash costs certainly haven't changed in the past 6 months and the whole argument that gold producers and explorers are lagging due to oil prices off-setting gold prices is now gone as well.
Here are the scenarios of the past 3 weeks:
1. Gold makes new high, gold stocks go down.
2. Gold retraces from new high, gold stocks go down.
3. Oil goes parabolic, gold stocks go down.
4. Oil comes off (REDUCING THE FEAR IN MARKETS / HELPING PRODUCERS/EXPLORERS) gold goes down.
I know we're talking about a lot more than one hole and I realize the argument seems flawed to say the price is BS wherever it goes but right now gold stocks are being manipulated and thinking it's anything other than that is stupidity.
Producers are making 15% more with higher realized sale per ounce of gold yet gold stocks are at their lows for last year and not new highs?
I believe right now GBB is trading range-bound in the 35-50 cent range waiting for:
a) new drills
b) more results
c) turn in TSX Gold Index (which would awake all gold stocks)
d) 43-101 announcement
Brett Resources was bought out over a year ago with lower grade ore than us and 6.7 million ounces for $550 million dollars.
Richfield Ventures was bought out 2 months ago with 4.2 million ounces for $550 million dollars in BC.
So apparently gold in BC is worth $130/oz and gold in Quebec is only worth $20/oz come 43-101.
I'll agree RVC deserves a better valuation as they have better grades but at the end of the day gold is gold and we've got a larger land package, a deposit open in more directions and our deposit is 100% owned, unlike SQI who owns part of the Davidson Property in their Blackwater land package.
GBB is recovering 93% of gold up at 0.60 g/t au which is nothing to worry about in terms of mining and we already know our grade is 30% higher when milled.