Probably way off...if a company bought Burnstone they could possibly profit close to a Billion dollars over the next 5 years. Probably, possibly, maybe way off, probably!
Still would have 5.5 million more ounces to go.
Share price SWAG:
Assuming the sale of Burnstone covers all debt of GBG. Also assume that Hollister can produce 100,000 oz/yr of gold equivalent, as they did last year. Then there PE ratio would be profit from gold devided by approx 600,000,000 common shares.
Further, assume that net gold profit is $1000 oz, then yearly profit would be $100,000,000.
PE would then be: 0.167.
Last, assuming PE ratio of 10,then the stock price should be $1.67 a share...Not bad.
give up burnstone just to cover debt? That would be foolish. Manageable debt is OK as long as there is no cash crunch and has good revenue stream and swing to profit potential to reduce or even retire debt in mid term. Burnstone production potential is huge and they are only behind 6 months to ramp-up production for which they need some $$. How many small miner companies will get this close to producing real Gold?
Since the company has short term liquidity problems it should sell some % of ownership on Burnstone mine attractive to interested parties to go solvent and have cash on hand after paying off DIP loand and enough to service the short term debt, complete the production ramp-up and start producing gold ..lots of it ..as being estimated from burnstone.
Out right selling off the company..? We want $2 minimum and so does company BOD members as they exercised granted options to acquire shares @ 0.75 recently :)