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Golden Band Resources Inc GBRIF

Golden Band Resources Inc. is a Canada-based gold producer engaged in exploration, mine development and extraction of gold ores from its properties in the La Ronge Gold Belt in northern Saskatchewan and processing at its Jolu mill. It has assembled a land package in excess of 870 square kilometers (km2) that includes thirteen known gold deposits and four former producing mines, which were Star Lake, Decade, Komis and Jolu. The Company is mining at three deposits to feed the mill. These are Roy Lloyd, Greywacke and Golden Heart. Roy Lloyd mine is an underground mine extracting ore from the Bingo deposit. Golden Heart is located approximately nine kilometers east of the Komis mine and is accessible through a 17-kilometer mine road connecting to Highway 102 just north of Brabant Lake.


GREY:GBRIF - Post by User

Bullboard Posts
Post by fungi294fron Feb 06, 2012 12:30am
475 Views
Post# 19493245

BGM Comparison

BGM Comparison

Golden Band has been underperforming in relation to all of my comparison companies, except Claude, as of late.

On Jan 30/12, Barkerville reported the results the Financial Statement for the 9 month ending Nov 30/11 on Sedar. Though the Barkerville website has been down for over a week, it seems the market is quite excited about the results. The SP touched over the $1 mark from 0.80/share a week ago. Take into consideration the 52 week high in May was $2.33 for Barkerville.

Assets for the 9 months decreased by ~$4.5M, Total Assets as of Nov 30/11 are $37.9M. Cash and Equivalents have not really changed at $500k. Sounds similar to GBN's Q2 cash of $770k but GBN has a greater asset base of $92.9M.

Barkerville was able to generate cash thru with $9.7M in warrants being exercised during the 9 month period to Nov 30/11. Whereas, GBN saw 17.8M warrants expire on Feb 4/12.

Barkerville Current Liabilities increased by $3.3M to $13.8M and Total Liabilities increased from $22.3M to $24.6M. GBN Q2 showed similar liabilities of $17.3M current and $23M total (which was $1.7M lower than Apr 30/11).

Accum Deficit increased by $22.1M to $96.1M from Feb28/11 to Nov 30/11. At Oct 31/11, GBN's total deficit was $16.7M, down from $19M on Apr 30/11.

After 15 months of production, Barkerville posted another losing quarter. Though they did have a profit of $1.14M from mining operations, the Comprehensive Loss for the 3 months ending was $7.9M or .10 per share. Barkerville spent $6.1M on exploration for the quarter. Barkerville's Total Comprehensive Loss for the 9 months is $22.6M. On the other hand, GBN posted their first ever profitable quarter in Q2 ending Oct 31/11 with Cash Flows from Operations of $4.5M and a Comprehensive Income of $2.3M.

Barkerville closed a PP of $24.35M on Jan 23/12. As well, in Dec/11, they received the long anticipated permit for Bonanza Ledge so the cash influx from the PP should help bring the open pit into production. Bonanza Ledge open pit @ 9 g/t is permitted for 73,000 tonnes/yr and should add 20,000 low cost oz/yr to production. As well, they closed the$5M acquisition of the Mosquito property on Jan 17/12.

Barkerville does not like to talk about production and costs. So here are the #'s they give. The new MDA stated production for the 9 months ended Nov 30/11 as 10,906 oz which is consistent w/ the 339.241 kg figure they also state. The six month Aug 31/11 production was stated as 240.539 kg therefore a conversion calculation shows the recent 3 month Nov 30 production to be 3,173 oz. The Financial Statement Cost of Sales was $2.993M which translates to $943/oz. This is actually not to bad of a number considering the costs of production the previous quarter, after the statements were amended, was $1002/oz. The quarterly cash cost of $943/oz is also respectable considering the ore produced from the QR underground mine graded 2.8 g/t.

During the quarter ended Oct 31/11, GBN produced 11,870 oz and posted Cash Costs of $900/oz. Ore grades from Roy Lloyd underground were 11.95 g/t and the 6,284 tonne bulk sample from Alimak open pit graded 6.76 g/t. Overall, the Jolu Mill processed an average grade of 10.91 g/t.

Barkerville stated the QR Mill processed 95,811 tonnes for the 9 months ending Nov 30/11, an average of 348 tpd. The QR Mill is rated for 900 tpd capacity. Golden Band processed 33,822 tonnes, a stated average of 367 tpd, for the 3 months ending Oct 31/11 with a 700 tpd capacity.

Barkerville are still awaiting long anticipated 43-101 resource estimates. Golden Band is awaiting drilling results though resource updates are unlikely until the year end Apr 30/12 report is released.

Link to my most recent previous BGM comparison update:

https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30390934&l=0&r=0&s=GBN&t=LIST

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