Barkerville Gold Mines Ltd.(CVE:BGM) (PINK:BGMZF) stock has gone completely silent on Wednesday despite dropping some 14% on Tuesday.
It looks like the new price will stick for a bit, since there is very little trading going. The last session pulled in only an average trading activity with 295.5 thousand shares traded. The stock actually trades very close to it’s 52-week low and bears might be afraid of short squeezes in case the price would drop too much too fast.
The latest collapse happened after the company announced changes in management on April 24. Craig D. Thomas, the director of Barkerville, and Jack H. L. Milller, the Chief Executive Officer, have both resigned.
Their places were filled by J. Frank Callaghan, who previously served as a president and a director.
The development might lead to more changes in management since the company lost two out of 6 of its board and might need replacements.
The company still holds a significantly inflated market cap of $36.3 million. Their book value is three times smaller and their business is generating enough quarterly losses to support the bearish attitude towards the stock.
Updates with drilling results haven’t been influencing the market price for quite some time – the stock lost nearly 72% over the past year.
