Brigus Gold (NYSE:BRD) is a gold extraction company located primarily in Canada. The company focuses on the exploration, extracting and refining or gold deposits across North America. As of 2011, Brigus only had a single mine in operation, but had acquired other properties to be developed.
For the full year 2010, Brigus reported a net loss of $67M. The company's net loss was due to the high cost of exploration and excavation of its mines.
Due to the nature of the mining industry, Brigus must invest heavily into a property before it produces gold. In the case of Brigus, the company has taken on large amounts of debt in order to pay for the acquisition, exploration, and excavation of its mines. If the reserves prove to be smaller than expected, the returns may not be able to offset the high debt. In addition, if gold prices drop, the extracted gold, even if it is as large as expected, may not be worth enough given the costs.