RE:1204.45 gold showing a strong open today .accruedfortunes wrote:
perhaps this will translate in to a small gain in our price , as before the nay sayers are gonna jump all over the positive ..... what ever we will be rid of you sour sallys soon enough! have a great day all .
Ermm...how soon you forget!!
Putting aside the fact that BGM ain't presently producing gold (according to the Wank and others, the BL and the QR have been shut down since December and January, and the BL isn't supposed to restart until the end of February), for every dollar that the price of gold goes up, the price paid to Sprott for the 4,167 overdue ounces also goes up a buck.
In the first nine months of the 2014/2015 fiscal year, BGM wasn't able to pay Sprott an ounce of gold on the first payment and, with the mine/mill seemingly "resting" until next month (unless the load/road restrictions extend the time out), then zero production for December, January and February could extend to March and April, too...which means that the 4,167-ounce overdue payment becomes 8,335 current-price ounces owing to Sprott at May 31, 2015.
What are the chances of BGM having 8,335 unencumbered ounces sitting around on May 31, 2015?
Non-existent, IMO