via Bloomberg - Junk Bond Buyers Head For The Exits

The following article demonstrates just how important yield is in the markets. Junk bonds are known for their high yield, but in the article, they mention that the average yield is 3%!

Cutting off any distributions in the Waterton agreement signed the death knell for GBN.V. GBN.V can possibly pay a 7 - 10 % debenture while still paying 1¢ per share per quarter dividend. Dividends will probably have to match the high payout ratio to debenture holders for the shares to be of interest to anyone.

Financial Post

via Kitco - Brent Cook

Brent Cook says that venture exchange listed companies will totally misrepresent to investors:

http://www.kitco.com/ind/Tommy/20130211.html

Company Fact Sheet

The company fact sheet has been amended to better reflect some of the developments in 2012. I have provided a quote and adjusted the statement using parentheses to clarify:

"With" "changes" "at" "depth" "in" "the" "nature" "of" "the" "ore," "the" "Company" "is" "changing" "to" "shrinkage" "stope" "mining" "to" "minimize" "dilution" "and" "maximize" "grade" "and" "recovery." "With" "the" "change" "in" "mining" "methods," "the" "daily" "production" "target" "is" "150" "tonnes" "per" "day" "at" "a" "grade" "averaging" "just" "under" "10 g/t" "gold."

http://www.goldenbandresources.com/images/file/GBN_One_Sheet.pdf

If you were to reduce ore production from your high grade mine by half, you would be counting on a doubling of grade if the change of the mining method provides an improvement. Instead, they insist that maximizing the grade means providing a lesser grade than long hole stoping did just previously.

We still don't have any idea where the ore is coming from within the mine, and no real picture of the deposit, as they have absolutely minimized any chance that any information is brought to light on Roy Lloyd. What they have arrived at is a lower grade than long hole stoping after delaying production for several months.

That being said, if they insist that these facts are as stated, then production over the previous two quarters is roughly half what they anticipate for Q3 + Q4. The new producton rate is probably ~15k. oz. per quarter.

-F6