Barkerville Gold Mns Ltd BGMZF

OT Some Fun Monday Morning

[ovis]

Allied Nevada report Q3 results before the market opens on Monday.

 

I strongly expect that ANV will surprise to the upside in Q3 in terms of  gold production and total cost per ounce. As a result, I expect to see the stock take off on the outside making some of the $36 or even $38 dollar out of the money options an excellent play, if you like a safe risky bet.

 

The gold production is going to be up over Q2 because the off site processing of their carbon stacks will start to contribute and the grade being mined in Q3 was significantly higher. The costs will be down significantly over Q2 because of the higher grade as well as the fact that the company has been upgrading equipment of the quarter which will contribute to lower per tonne costs.

 

ANV has excellent management that is totally committed. The stock price had run up to $40+ on the expecatatiion of the Q3 results but has sold off with the sector and the ABX bomb last week. The upside surprise will be enough to turn the stock price around in my opinion and should be an easy play to call once you see the numbers before the market opens -- look at the Q3 ounces over Q2 ounces and look at cost per ounce Q3 over Q2. Of course, if the numbers aren't significantly well, look for another play.