Cork gave me a plausible explanation. He said that a London sell side analyst gave the company a definitely negative review, and several banks on that side of the pond, followed suit with downgrades of thier own. At issue was the methodology that Great Basin Gold is using to mine their Burnstone Mine in Witwatersrand South Africa. I cannot locate the post to repost it for you, and I don't have very good recall of the content. But suffice to say that GBG is using this new way to layout how this property is mined. If you have negative point of view, you can dicount and deny the profitability of even the best, most profitable companies.
I have also suspected for a while that GBG is using revenue generated at Burnstone to prove and document their Nevada properties. These exploration activies are well known to produce significant expenditures that don't get reflected in the companies market cap...until these drill results are formally released. Then as investors take notice, true value is reflected in PPS.
Bottom line: GBG is active in the world's two most productive gold mining districts: Witwatersrand (with vast documented resources) and the Carlin trend (which produces more gold than any other district in north america today). Stock price is at it's 52 week low. Due mostly to declining european market sentiment, and general liquidation of assets over there. The upside potential for GBG is large.
Stinky_pinky
