Ann: Lady Ida Project Update, page-76

I actually agree with Trigger here in his general point. FishingandBeer is right though, this doesn’t solve the ASX issue.

I agree that instead of using debentures to fund the development, just wait until we’ve got enough money to pay the $20M from BCN’s own pocket. This solves people’s accusations of the debentures just being another way for the directors to fill their pockets with 12% interest.

Unless there’s a big rush to develop Lady Ida, which may be the case, but I thought we had at least a couple years worth of LOM between Jaurdi, McPhersons etc so I don’t see the rush. And now with this ASX issue, it seems like we can’t rush even if we wanted to.

I’m not sure how it would work with the purchase of Lady Ida, but does it mean that BCN would need to issue $10M of shares to the directors to buy Lady Ida off them (Or OBM?). If so, can we then just do $10M of share buy backs over the next few months to bring the number of shares to what they currently are?

We had $4.5M at EOFY plus just sold $13M post EOFY, so have $17.5M. Every month we profit about $2-3M. So by the end of this year we’ll have $30M to pay for the $20M in development of Lady Ida and $10M of buybacks. Personally, I’d much rather this route than lose 12% ($2.4M) on debentures if they aren’t needed.

I haven’t looked into all the ins and outs of this like the directors would have, so a lot of my ideas may be flawed and quickly disregarded. But I guess the point stands as to why is there a rush to develop Lady Ida (and hence need debentures) when we can just wait and pay for it with our own money.

PS. A few other points about what people have raised lately:

- The directors have put a lot of their skin in the game, I think with the amount of time they’ve spent chasing Lady Ida in the courts, they deserve to be rewarded. BCN shareholders are still getting a shitload of known ounces and unexplored land for a cheap price. Obviously the less they have their “snouts in the trough” as you say, the better for us shareholders, but I don’t think that’s anywhere near what I’d define their actions the last few months and especially the last few years.

- Yes BCN directors are unrivalled in the way they operate the mine, find cheap ounces for us and slowly build this into a monster, but the shareholders also need to see some share price growth. I think Timor Leste will give us that but then again I (and probably most investors here) thought Lady Ida would add about 2c to our SP, but it didn’t. So something needs to change before we release TL if results are good because the market might react the same if we keep thinking something will be different this time (Definition of insanity is doing the same thing over and over and expecting a different result).

- I bought more at 2.7c Friday because wow this is a bargain. Even on current reserves (including Lady Ida), this is crazy cheap. Add Timor Leste as an unknown and the sky is our limit.