Financials - What Are The Facts After All?

First of all, the declaration of commercial production on April first of this year, just prior to the end of fiscal 2011 is a very important date of reference.

All of the costs associated with mining in the last quarter were applied only to the ounces in last month of production. If you had three months of full production and you divided the costs by three, what would you get?

This will make a huge difference in how the company looks after Q1, which has already expired at the end of July. Report Sept. 30 at the latest.

The payback period will commence shortly, when the ongoing deficit is written down.

But, as usual, the company is snatching defeat from the jaws of victory once again. To be a shareholder in a gold company is a vocation of sheer masochism, as you are almost certain to be swindled. Even people I've talked to in the industry immediately spout 'swindle.' Its just next to impossible to point out to anyone why an investment here makes sense.

Its not the company's responsibility to take charge of your psychological outlook by waylaying fears. They only have to comply fully within the rules of financial disclosure.

Naked Shorters

If the naked shorters and equity swap holders claim they're from Switzerland, their story is like Swiss cheese. Full of holes.

They can lie and say anything at all that they like. For instance, they can claim that they're long and that they're on your side, but in reality are looking to trash the stock by attempting to cause a panic. Its very easy to do.

From my perspective the crowded trade is on the short side, and these traders are no longer on the best footing, so the become increasingly desperate, resorting to desperate measures. In the total absence of sellers, they haven't got any ability to arbitrage the stock price. When the gold price is up, GBN.V shareholders may be hamstrung with their investment, but will invariably hold on to their stock.

How did somebody, for instance, obtain the year end report and post it to the GBN.V website and underline their messages to the Stockhouse forum prior to news release if they're from Switzerland? Its absolute sheer nonsense. They pay Stockouse for the priviledge of having their posts rate a 5 on 5.

They're used to being winners using every trick in the book, but they will be losers.(this is the worst insult to them, calling them a loser.) They cannot now escape their fate without buying back every last stock they sold forward without first owning them. Remember that on any given day, at least 30% of the shares traded on any given day are as a result of naked shorting. If they have to buy back ~100m. shares because they bet wrong, what do you think that would do to the price, if say nobody else sold their shares?

Its sheer fear mongering to say that there's a massive overhang of shares from warrants that have yet to be cashed. Any overhang that was sold, was sold last year during the stock rise. Go to the bottom of this page and see for yourself who bought and sold in large quantities.

http://markets.ft.com/research/Markets/Tearsheets/Business-profile?s=GBN:CVE

GBN Monthly Chart

Never disbelieve the monthly chart. That being said, the monthly chart says the trend is up.

supersize: http://www.flickr.com/photos/11747277@N07/6106606301/sizes/l/in/photostream/

stockcharts.com

-F6