American Bonanza Gold Corp ABGFF

Back on track ?

[bizwiz]

I read the news and I thought it was good considering the dillemma the company was in resulting from a lackluster price for the equity preventing further work to get the operation up and running... Now , with a merger (I don't know Kerr, but I have heard of Kerr Addison) , it is clear that they will now have the funds available to put high grade ore on the stockpile thus further assuring the profitability of operations once considering covering the necessairy expenditures for mine upkeep and such... In that regard , I was surprised that management hadn't previously taken such inherent risks into account once considering the reality of equipement failures and renewal. Nonetheless with an enriched stockpile the corporation should meet its day to day needs wcich is further facilitated with an alliance with a more established player despite the dilution to uncover...

As for the price given for an ounce of gold once considering valuation , the following article (from Stockhouse gives an indication of such:

https://www.stockhouse.com/opinion/ticker-trax/insights/2014/01/31/$2-asanko-t-akg-will-have-$280m-cash-and-9-million-ounces-gold

The current inability of the corporation to get profitability from production reminded me of what had occurred with McWatters mining which was in the inability to obtain sufficient production of gold from its low grade ore , such anability I figured originated from faulty equipment most notably the fine grinding of ore with finer grinding assuring greater output once the ore is leached... Mind you, once Bonanza was given the right to trade on the Toronto stock exchange it was assumed that the regulatory experts from the exchange had done arrived at the brelevent judgmenet regarding the proftability of the enterprise knowing the speculative ventures don't graduate...As for the fate of McWatters; the company still exists and had in the past given some tangible dividends (if I'm not mistaken ) which I thought was a consequence of its full ownership position of Minorca  (not Minorco ...)which held a 10% interest in the Grasberg deposit of Freeport McMoran (incorporated in Delawars)