Good to see another investor in gold stocks. Yes, its been a little disappointing Eric that blrv's pps fell like it did. That doesn't mean its not a good buy. At its current price, I would say its oversold. Was the resigning of the CFO a factor, maybe just a little. The real reason the stock is down is twofold. First, it took almost two years to get the mine operating. This has added 10 million to the liability of the company. Investors thought that the mine with its good ore would be producing ten times its current production. Whats happened is that the new state of the art crusher was crushing material but not with the quantity of gold that should be there.
The good news is that they have brought an expert in (Mr. Callaway) to bring just the good ore out and process it. These are narrow veins and have to be dealt with differently. The facts are that the company now has the infostructure in place along with proven reserves and the company is projecting at least 30k ounces or more next year. This alone could wipe out their debt and put them on the plus side. The mine not including all their other properties is valued at over 30 million. The outstanding shares are about 60 million. They expect to break even by the end of 2007.
The other event that knocked this stock and others was the unwinding of the stock market in August. Some of those investors have not returned. With gold heading higher and Blrv at the point of success, this stock has great potential next year. Its not uncommon for CFO to leave small companies after a few years. They are also trying to work their way to the top. The next quarter return will show if the company has turned the corner. If they have, this stock is definitly headed north again. I think its a good buy. Sticky
