Ann: Gold Sales Guidance Unchanged - CY2014, page-55

Interestingly (to me), I read the presentation for Canaccord. They are talking 'sales' everywhere. But in the end of the paper, you will see the production vs sales for 1st half. I see the sales are about 9k over 'recovered'. So if there was 10k gold in the kitty at 31 Dec 2013, then they depleted that and q3 must have started about 'on par'.

So, since the announcement re the q3 sales was 41k, it must have been all from production (unless they are finding it under the bed?). Now it says only 3k was from Duckhead. So that means 'non Duckhead' must have produced 38k.

Does this mean once the Duckhead is exhausted, we have a low grade (but profitable) operation at about 40k per quarter (that may be lower in the wet season). So without more discoveries, what is BDR 'worth' producing 140-150k per year. That is, after the Duckhead sugar hit is gone.

On a side note, it will make me sad if the POG skyrockets in say 4 or 5 years and we have produced / sold the reserves at the bottom of the gold cycle. Just thinking. I suspect gold can stay low for another couple of years at least. And all miners will dig and sell at the bottom. When gold was 1600 or 1700 the smart move would be to hedge a small proportion of production, so the mine (I dont just mean BDR) could run at 20 or 30% production / profitably. THEN if gold increases you hedge a bit more and ramp up a little bit. If gold falls you simply run at your 'maintenance' mode. Maybe that is simplistic thinking. But it makes sense in my mind. I guess that would be POG 'risk' management. I would like miners to be proactive in this... not just forced by the banks into hedging on the banks terms. All in all, it seems gold miner managements are real 'gamblers'. And I can understand as they get their salary NO MATTER WHAT... so why not have a bit of a gamble. (not so good for share holders, though)