Brigus Gold Corp. (BRD)

[gharma]

We will see some more clearly soon with the next report.
I am not a fan of the PPP offer for the part of BRD they want to keep and see it as selling to them at a discount, even after taking the $CA 10 million they contribute to SpinCo into account. JMO.
Even using projected production the new tax is estimated by PPP to increase their tax expense over $100 per ounce over what is already on top of that $974 AISC. Whatever is and isn't deductible seems already taken into account in that $14 million estimate, and as far as I have yet seen is still waiting on the final implementation rules/regulations to some extent.
Through 2015 PPP has significant cash outflow, considering the note and the recent 20% purchase. Excess for cap development, explore/expand looks slim.
Of course all of above assumes gold stays where it has been held, against physical pressures, the better part of the past year. The odds that we see gold stuck at an even lower price before 2015 end is IMO not nil.