Ann: Beadell Announces Board and Management Changes, page-95

I think the company should restructure the debt to include a fast tracking of UG mining. Higher grade feed could de-risk the entire mine. It is clear that the "move that dirt" philosophy hasn't worked under a constrained gold price environment for quite a long time now and operationally the mine is plagued with problems.

Kinross has been a loss making machine for the last 2 years: $1.4 billion loss (or $1.22/share) in 2014 and a ~$3 billion loss (or $2.64/share) for full year 2013. All this on an all-in sustaining cost per

Au oz. sold (on a by-product basis) of $965 for full-year 2014 and $1,063 per Au oz. sold for full-year 2013.

I'm sure PB never managed losses this large.

Having said this they've probably got about $1 billion in cash (less restricted cash) and could easily finance and fast track the underground development.

If they announced a debt restructure and the fast tracking of underground mining then I'd consider investing. But that would also depend on the terms of the debt and the speed of the proposed development. These large companies can be like pythons in that they can catch a smaller player in a death grip. Refinance the debt, run it into the ground and then let the receivers and managers move in. Bit hard for them to do from a conflict of interest basis but hey operational problems are operational problems. The UG mine is what saves this company in my personal opinion.

Eshmun​