4. Great Basin Gold (GBG) is involved in the acquisition, exploration, development and trial mining of precious metal deposits. The company has two material projects in the trial mining stage -- the Hollister gold project and the Burnstone gold project. It is also conducting early-stage exploration on prospects in Tanzania and Mozambique.
The company recently provided its operational update for the first quarter ended March 31, 2011. Recovery at the Burnstone project amounted to 5,511 gold ounces, with 2,794 ounces sold, to record its first-time revenue of $3.8 million. Meanwhile, cash production cost per tonne for the period is estimated at $70, which is in line with the planned costs during production build-up. The plant has processed almost 200,000 tonnes during the quarter, meeting the target provided by the production build-up plan.
Meanwhile, 21,828 tonnes were extracted through trial mining from the Hollister project during the quarter. In terms of production, the company maintained its fourth-quarter levels by recovering 28,500 gold (Au) equivalent (eqv) ounces (oz), of which only 17,500 Au eqv oz were recognized in revenue, as an additional 11,000 Au eqv oz were delivered but not sold to the refiner by the quarter-end.The company said that since February 2011, when it introduced clean carbon, its gold recoveries for the quarter exceeded 88%, while silver recoveries rose to 68%. Meanwhile, as of March 31, 2011, the company had $68 million in cash reserves. GBG is scheduled to release its financial results for the first quarter on May 16, 2011. All six analysts covering the stock recommend it as a buy. There are no sell ratings on the stock. Analysts polled by Bloomberg expect an average 12-month price target of $4.1, or 77.4% higher than the stock's current price.