Barkerville Gold Mns Ltd BGMZF

RE: RE: RE: RE: More on Pouring Gold

[ovis]

bxju,

I was tossing cold water on the BGM financials. I don't believe the good per ounce figures. Something isn't right.

 

Should FC's salary not contribute to the all in per ounce production costs? I can't say.

 

There is a very good white paper by the CEO of Ashanti (sorry I lost the link) that goes through the problems miners are having in terms of deliverying. One of the big points I took away from Holland's work was that companies are not very good at reporting their all in production costs. When I reviewed that white paper it made me think of the BGM financials that showed these truly excellent per ounce production numbers but yet also showed the greatest losses per share during the quarters that they produced gold.

 

I am sure that all BGM financials are within guidelines but my naive reverse engineering of the financials tells me that the $700 per ounce production costs are very far from representing the real all in production costs that Holland talks about.

 

Thanks for sharing your analysis. Maybe someone who is an expert at reading financials can weight and comment on production costs.