I'm more bullish on BGS than I have ever been, but I think that we are getting to the point now where current management will need to take a step back and bring in new blood who have experience in taking mines from exploration to production.
The resource is world class and looks like it will be top 3 in the world in quality with enough tonnage to satisfy a huge LOM even with a large annual production capacity. Therefore we need world class management to come in and bring this baby home.
Kevin is a superstar geologist but at the very minimum, BGS needs a new project manager who has successfully developed a mine in Mali previously to come in and steer the ship through to production.
The result of the long awaited gold deal is a net positive, but with a mere ~7.5% share of the profits attributable to BGS, this demonstrates that the board could use some better negotiators.
If we are to be dealing with Chinese partners and customers, our management need to be STRONG.
There is no reason why Kevin should not stay on with BGS, as his connections and experience in Mali coupled with his exceptional skill as a geologist are a huge asset to the company. However, I can't find a compelling case to retain the other two directors. It is what it is.
BGS Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
