BDR 0.00% 6.5¢ beadell resources limited

Gold comes out of the ground only once, page-3

  1. 4 Posts.
    I'm not suggesting they reduce production and go broke. I am suggesting that it might not make sense to overproduce at these gold prices. Yes, gold is at high prices in terms of BRL and AUD, but that hasn't seemed to help BDR reduce AISC to all time lows. Company debt is still priced in USD and gold is at 5 year lows in USD. Does it make sense to overproduce now? Unless AISC can be reduced to USD $750/oz or lower, it might make sense to wait for gold price in USD to rebound.

    Somebody explain to me how ramping up production to 200K oz. per year at the current price of gold helps BDR if they can't keep the AISC under USD $900/oz. with the current favorable exchange rates and gold keeps dipping to USD $1100/oz. Produce enough to pay the debt, explore the high grade deposits, and let the resource sit in the ground until the price of gold rebounds to a better profit spread.
    Last edited by jjkeister1: 21/10/15
 
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