RE:Here we go againI checked the last quarter result and B2 has returned to profitability as two previous quarter were in the red ..not a big loss but it was still in the red, once the Sabrina deposit is in full production next year they will surely reap the benefit of this mine , they also receive a royalty of 22% for the other deposit that Sabina sold. Can t remember the full detail,,i think it was the Jacket River deposit..i could be wrong ..just writing this from memory..i followed Sabina for many years, I was totally caught off guard when B2 made the move to buy them out but a good investment choice for sure, I thought Kinross was going to take them over but they bought Great Bear.
I see B2 is going to go back up to $5 - $6 around this fall or after they start production next year in N.W.T. after that if all goes well we should see $ 8- $10 and up depending on gold price afterward, we will see the shares bouncing for now between $ 3.50 to $4 and a possibilty to $4.50 to $5 once they make a few quarters back to profitabilty. They pay a cute dividend and i can tell this will get better.
They have a retained earning of $ 384,539,000 which is rainy day fund for set backs etc..they have a cash balance of $567,814,000 so they are a prudent management..as i follow this religiously, if you don t have any retained earning after a few quarters..then i m out as you can t succeed with only debt and no rainy fund, many have tried that and only diluted there shares and some had to sell out..there is always a day of reckoning for foolish companies that never learn from there past.
B2 also have current asset which is short term investment, cash on hand, account receivable for gold sold and inventory is $ 996,645,000 and total asset of $5,296,272,000 and total liabilities of $1,469,881,000 ; this shows prudence, so far management is doing good. I m not knew to this as i have been investing since 1983, read tons of reports.
Last earning operating income was $ 154,627,000,net income before tax was $130,095,000 , net income after tax was $48,481,000. I rounded up the last 3 numbers to 000 as it is only pocket change and meaningless to the total.
Time and patience will reward us all.