Looking for More Glitter on Bema Gold
TORONTO (ResourceInvestor.com) -- It would be somewhat of an understatement to say shares of intermediate producer Bema Gold [TSX, AMEX: BGO; AIM: BAU] have hit a rough patch.
Whereas the S&P/TSX Capped Gold Total Return Index has fallen 19% over the past fast five months, shares in the Vancouver-based company have plunged 37% off a 52-week closing high of C$4.55 set on November 29.
Though contrarians might be interested in taking a closer look at the stock, there appear few catalysts on the horizon to drive the share price higher.
In late March, the market was taken by surprise when Bema announced it had lowered the indicated and inferred gold resource at its flagship Kupol project to 5.8 million ounces from last year’s estimate of 6.1 million ounces. Additions in the North and South strike extensions were not enough to offset a loss in inferred ounces from the bottom of the Big Bend Zone which were included in last year’s estimate.
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