Ann: Quarterly Activities & Cashflow Report December 2018, page-31

I have not had a look at this duck for a while - surprise, surprise, nothing much changes, with costs going higher.

The way it is operating BLK needs gold at AUD1300 for shareholders to feel that it can make a profit in the longer term, given the need for exploration, admin costs, meeting funding costs, and capex. BLK reminds me of SLR's Murchison operations which had an AISC of around $2000, before they were closed down and the assets sold off.

Dixon still there spinning his BS. No idea why anybody listens to him.

I can understand the share price doing a bit of a runner on hopium that the higher AUD gold price will save them. The problem is that they need the gold price over $2000 to feel any effect.

The main problem (besides BS management) is the high strip ratio relative to the tonnes being processed and the lowish milling grade (you need them both higher, preferably a lot higher milling grade) so that we get a higher level of gold production (say 120k ounces pa that lowers AISC and helps carry all the other costs).

My wild guess is that BLK retraces to 4.5 cents.

GLA.

loki