Replies to post #7282 on Great Basin Gold Ltd. (fka GBGLF)

[Stetson_8x]

I agree. That is why I think we will be ok with Burnstone. In my own opinion I think the debt will be restructured with some type of JV. It is hard for me to think that any one company will come in and buy it out with that type of debt and then infuse it with capital to get the mine producing. I have an even hard time believing it will go for cheap leaving creditors out to dry. Not saying it can't happen, but in today's economy. The banks want money not property they have to sit on until the can turn it for what they can get for it.

[finbar99]

>>Or Loews
Or Berkshire
Or Vodafone

Look, I agree that market cap may be a more fitting measure than enterprise value for a well managed, cash flow positive going concern. But trust me, at the first whiff of financial distress, you better switch to enterprise value 100%, because the debt really does matter when there is doubt over the ability to service it. Great Basin is not a Loews or Bershire or Vodafone. But hey, don't take my word for it - if you believe in just looking at market cap it's a screaming buy and you should back up the truck tomorrow.