RE:RE:RE:Funny as hell!!pigbruinmcveid wrote: What is the ulitmate thinking from Sprott?
Well, reality is that Sprott owns 15,895,231 BGM shares (those 9,000,000 warrants are so far out of the money as to be wishful thinking).
In a couple more months, God and shareholders willing, he'll have another 63,333,333 shares (+ or - another million or so) to add to his stash. Then there may very well be 6.25 million flow-thrus that he's on the hook for.
I'm sure that he'd rather have his money back but, fantasy aside, reality is that he'll likely have 85,478,564 shiny (and not-so-shiny) shares pretty soon.
At today's current price of 24 cents, they're worth $20,514,855. I don't think that he'll have put much more than $21 million into that pile of paper, so he's likely not too far underwater.
To do anything constructive and get some volume of gold pouring out of the properties will likely take at least another $20 million...and will the gold cost $15 million to produce $20 million in revenue? Sort of a gamble, and many punters have been burned by BGM over the years.
Of course, this IS THE YEAR during which Sprott predicted $2,400 gold. If you believe, then it's not a gamble, it's a sure-fire, slam dunk.
However, I can't see Sprott putting another $20 million of his cash into this, and the punters are likely to stay away in droves.
June 30 is the date for the fourth-quarter financials, and the first quarter 2015/16 are due out on July 29. They won't be pretty, and Mr. Market will likely expect that; however, losses won't drive the share price higher.
Of course, some few punters can be swayed by bullboard BS, but it'll likely take more than that "guaranteed" flow-thru of $1,880,000 to prime the pump at the mine and the mill and get some real results.