best gold stock 2011, page-10

my guess is that the share price is languishing because
1. they need cash in the bank to become a good buy - to buy new prospects, share buybacks, dividends etc
2. they currently have $30m - $100m = -$70m
3. despite reducing costs and making a $20m profit this quarter, all of it was spent. Thus nothing appeared in the bank balance.

Thus new investors would be gambling on the price of gold going up and staying there.


If they start exploration then that could bring in new investors but would also burn cash they need to pay off their debt.

Rumot