Ore mined: 284kt ... extremely poor (I didn't think it would conceivably be this low)
Ore milled: 984kt ... not bad but not showing signs of ramp up to 5mtpa
Head grade: 1.04g/t ... poor. Even lower than Q1. A reflection of low ore mined and thus greater use of low grade stockpiles
Recovery rate: 88%. Lowest for some time. Reflects that plant isn't set up for the lower feed grade.
Gold produced: 28.2k oz. Very poor.
We now also know that new loan facility is the full $60m (likely on relatively high interest terms due to unsecured nature). Net debt position is $27m after taking into account $33m cash and bullion.
Cash, ASIC and gold production guidance for FY all worsening.
Only redeeming feature is that the Lookout Lode looks good and will add significant high(er) grade oz to the mill.
My concern is that management credibility is waning. This information should have been provided as soon as management were aware of this. Especially the lower forward gold production guidance.
It is a big call for management to effectively state that gold production will double from Q1 and Q2 for the rest of the year. On what basis do they make this call? Based on recent management statements I am increasingly skeptical.
Danhoff et al. You were right. It would appear that BDR's relative lack of performance during the Q when gold and other miners were performing may have been due to information flow to some.
Cheers
John
BDR Price at posting:
56.7¢ Sentiment: None Disclosure: Held
