Ann: September 2016 Quarterly Report-BDR.AX, page-182

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speculator101

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31/10/16

14:28

Post #: 20253164
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Originally posted by binwood ↑

Different situation V*.

His argument is that KDR is still an exploration company. He bought it for the gold but would have been stupid to sell because they were lucky enough to strike a large pegmatite system. They have the opportunity to progress dual resources. Esh got lucky on KDR turning into what it did though lol.

His argument with respect to BDR is we have an 8 year LOM on a mine that should be making money. In that case raising funds to explore is essentially superfluous. They should have just extended the LOM and resource as needed from FCF.

I don't 100% agree with the point but I understand it. I always believed the CR was made to keep BDR afloat, which I said was a good move as it is better than no company at all and it is what gave the company traction. But if we still aren't making money and all hope is going into the exploration play then that is not good. Yes we are finding good grades etc but if your banking on the drill bit then aren't you better off buying a company with good prospective ground with a MC say sub $50m, a few decent hits and you have probably doubled your money.

This is when people will say oh but BDR is less risky because they are already producing. That is the entire point that predicates the debate though. If we are a successful producer we don't need to be an aggressive explorer. If we are an explorer that produces then this is still risky and there are better risk/reward options.

I think there is merit to the discussion. Even if everyone doesn't agree it is a debate worthy of having and considering so everyone can be invested here with open eyes.

To me the success of BDR revolves around a successful production operation. If I want what is primarily an explorer I will look elsewhere.

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Bin - I think the whole discussion has got out of hand. For me SJ said you get a great plant, 7-8 years of production and good profits with BDRs current share price, with, the added advantage of being possibly the best exploration play in the world, for free.

BDR Price at posting: 46.0¢ Sentiment: Buy Disclosure: Held
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Ann: September 2016 Quarterly Report-BDR.AX, page-182

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