Banks Island Gold Ltd BKSLF

RE: Increase in production and better grades for mill coming

[Mining_Engineer_UBC]

This is a classic case of is the glass half empty or half full. It's the 5th month in a row of increased gold payable. In Q4 2014 they produced 3606 ounces of payable gold. In Q1 2015 (Mar/Apr/May) they produced 4530 ounces of payable gold. In Q1 they cash flowed over 700K so obviously the extra almost 1000 ounces makes for a considerably more profitable Q1. Now, they've started Q2 2015 with 1863 gold ounces payable and probably made close to $1,000,000 in just one month. All of this for a company with a market cap of just 7.4M. Of course, they missed their target by a large margin, and I question why they made such a bold statement, but if you can look past that then I would say things are looking pretty darn good. It should also be noted that with such a small mine where you pretty much have just one of everything that it's hard to predict development rates because it's hard to predict equipment reliability. It would be nice to have extra machinery and parts kicking around, but that's a management philosophy that has it's pros and cons as well. I noticed to tonnage throughput was up to 276 tonnes/day which is encouraging as well. It looks like things are aligning for another record month in July.