Barkerville Gold Mns Ltd BGMZF

RE:RE:RE:RE:RE:RE:POG $1477

[yaponski]

halcro wrote:

yaponski wrote:

halcro wrote:

 

YP, you are so negative!!

In the first quarter of Fiscal 2014 (alas, also in the 2nd, 3rd and 4th quarter of Fiscal 2014), BGM produced under 28 ounces of gold...at a price of $1,575 (U.S.) (@ 1.0265, that's $1,617 Canadian).

 

Well Halcro, call it negative if you want, but your claiming a cost per ounce $1,575 is just not supported in the financials.

Consider Nov/13 financials.

• 9mth, top line revenue: 36,788
• 9mth, bottom line net: -16,780,591

Now, I will be generours man and assume 30 oz were produced which means the per oz cost was north of $500,000 USD per ounce.

I believe your $1,575 per ounce cost estimate is just your good nature showing through and you are giving BGM every benefit of the doubt.  Still, I find such optimism boarding on pumping.  Yes, Halcro is looking a wee bit like a pumper these days.

Well, there you have have. Estimated cost per ounce production is between $1,575 and $500,000 per ounce. But no matter everyone, the word from the BBoS is that the losses per ounce produced will be made up by increasing the volume :)

So sorry, YP, so sorry!! I will clarify.

I didn't suggest that $1,575 per ounce was the cost of BGM producing those under-30 ounces of gold in March of 2013.

The POG in March, 2013, was $1,575 (U.S.), or $1,617 Canadian.

Jrai was suggesting that the time is now right for BGM because the POG is $1,484 Canadian...$133 per ounce lower than the price was in March, 2013, when the BS Bear printed that BGM shut down its mill BECAUSE THE PRICE OF GOLD WAS TOO LOW!!!

I would never, ever suggest that BGM has ever produced gold for $1,575 per ounce...US or Canadian!!

Your math skills are impressive; I also calculate that, so far this year, the all-in cost per ounce is north of $500,000.

I don't think that they'll be able to get that $500,000 per ounce, do you? Barkerville's gold may have a bit of cachet attached to it, but that's hardly worth a premium of $498,661 per ounce, is it?

Halcro,
So sorry. My mistake. Just call me Snap Decision Quail. I read a couple of words and start typing without reading the rest all that carefully. LOL.

Well, I do agree that BGM premium relative to POG is a mite expensive.  And I don't believe the BBoS strategy of making up the difference on volume is going to work out all that well either. 

Rough weather ahead. And speaking of rough weather, I wonder how the PP is progressing... Should be due for a NR on that I expect. If I was a betting man, which I am not, then I'd be wagering the next PP related NR will be announce a repricing, at a lower price... Just a hunch but I don't see how they would be able to complete at 50 cents given the current trading volumes.