American Bonanza Gold Corp ABGFF

I'm in

[Combo9]

Bought in this morning. Looks way oversold after drifting on lack of news. Main points persuading me to buy now: -

1. Quarterly update is out on September 30th. Based on the timelines in their June updates and presentation, the new stopes should be more or less ready so an announcement of commercial production could be imminent.

2. The CFO/VP recently exercised 360k worth of options (August). Most of these are sub 20 cents, but one batch was exercised at 22 cents. He kept hold of all those shares rather than disposing for a quick profit -- a positive sign. (see: https://www.canadianinsider.com/node/7?ticker=BZA )

3. There have been no subsequent announcements of financing, suggesting they are cash flow positive.

3. The current market cap is fair even at pre-ramp-up rates of production.

4. Low cash costs. QE3 can only help but not necessary.

The main reservation I have about the company at this stage is it apparently isn't engaging with shareholders very well; however, they are delivering results and the questions being asked by shareholders are probably price sensitive anyway. I'm invested in another company where the CEO responds to e-mails within the hour, but the company's progress is slow. I know which I prefer.

all imho, gla