RE:RE:RE:RE:RE:RE:RE:RE:RE "Dance of the sugar plum morons""
Now in the AEM case, when AEM announced its Goldex problems things did happen, big time..."
True...when things were announced, things did happen big time.
With BGM, when it announced its Peter George flight of fancy, "things did happen, big time...".
Stock price went from 81 cents to $1.60; down to 80 cents when the Post and the BCSC questioned the PG flight of fancy; up and down between $1.22 and 62 cents until the BCSC halted it on 2012-08-14 (curious that the price levitated to $1.22 in the days before the halt, innit?).
Trading restarted on 2013-10-09 at 52, hit 63 cents...and it's yoyo-ed between a high of a buck and a low of a dime since then.
As the pieces of the puzzle fit together (and Sedi and Sedar filings are a part of that puzzle, IMO), then there's likely more grist for the BCSC mill to grind away at.
Of course, a bit of goading might always speed up the grinding?
borisY wrote:
Halcro,
True that. It isn't over till it is.
But what out come do you expect from your senario?
I totally agree Sedi and Sedar should always be the database of record but in the BGM case what do you epxect to happen when the update is made?
I expect that BGM will trade less than 100,000 shares and close at roughly the same price as the previous day.
Now in the AEM case, when AEM announced its Goldex problems things did happen, big time...
from
https://www.goldminerpulse.com/ this afternoon...
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Given that gold producers trade on factors that include metrics such as:
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quarterly gold equivalent production
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current gold equivalent reserves
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average grade of gold reserves
as was evidenced in part by the Agnico Eagle stock price drop from $58 to $47 after announcing Goldex mine to suspend production during investigation and remediation of water inflow and ground stability issue on 19 October 2011, an event that can be primarily characterized as a lose of quarterly gold production and a drop in total company gold reserves, it is not unreasonable to wonder if a correction to the 11 February 2015 over statement of gold equivalent reserves and gold equivalent reserve grades, if it had been made in a timely manner (see 11 February 2015 Error in LaRonde Reserve dislosure proof), would not have led to a lower average price in AEM stock price for the five trading days ended April 9, 2015.
It is worth noting that the drop in AEM share price after announcing the Goldex change of state was all out of proportion to the loss in quarterly gold production. Therefore, I am suggesting that the price drop was also a function of the loss of gold equivalent reserves. Other factors of course included the surprise element of the news. Regarding gold equivalent grade influencing share price, an inspection of TSX gold producers shows that producers such as AEM who have a higher average gold equivalent grade trade at a premium to low grade producers such as Kinross on a metric such as enterprise value per ounce of gold equivalent reserve.
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At some point (but perhaps not until February 2016 unfortunately), the LaRonde overstatement of gold equivalent reserves has to be corrected in a Sedar.com filing. At that point in time, we will get a first hand datapoint on the extent to which the news reading trading robots may have been "confused" by the 11 February 2015 news release error. Why the regulators have not forced a clarification of this erronous filing before now is troubling but it is what it is.
IMO, reasonable behavior on the part of the provincial security regulators would be to force AEM to halt trading until a news release correcting the 11 February 2015 error is issued. Only then could we all see a fair and honest market reaction to the 11 February LaRonde reserve error. While a halt for a news correction may seem unfair to AEM, the current conditions only exist because of an error AEM made. And until that error is corrected in a fair way via a full Sedar.com disclosure, gold juniors purchased with AEM shares may be getting a bad deal if the AEM share price is artifically inflated as a result of the gold equivalent reserve error AEM introduced on 11 February 2015.