Ann: Cancellation of Options and Performance Rights, page-5

Planning for production commenced:
• Robust Pre-Feasibility Study for Kal East showed strong returns (A$106m pre-tax cashflow @ A$2,500oz; +$34Mpre-tax cashflow for every A$100 increase in gold price)1
• Long Term Incentives aligned to objectives (Paulsens 60-70koz pa, Coyote 30-40koz pa (prior to throughput upgrade),Kal East 50-60koz pa)

You guys will notice gold is now A$250 higher than the stated A$2500 pre feas study number. This means that Kal East has added another A$85m in pre tax cash flow on its own in the recent gold price hike. That is equivalent to the entire companies market cap. This study is based on their initial numbers and they are only a fraction of the total resource that will get upgraded at Kal East over time. The study was enough to show it could get started and make money.
What has the gold price added to coyote and paulsens during this period? Studies will tell us in due course. The gold price has risen over $250 since they were acquired. I think they were approx 750k ounce of high grade. They are about to go closer to 1m ounces with recent drilling. The gold content of that has risen $187m during the same period. More upgrades to come shortly. The combination of the rising gold price and the high grade lifts the economics of all these projects. It reduces risk.
If we look at the entire 2m ounces and multiple that by $250, the in-ground gold value at Bc8 has risen by $500m. Management want 3m ounces out of these resources. Might be a tad cheap. Give it time. Some maybe thinking they are come a placement and are selling here. They have been doing that for months and now the stock is rising. What happens if they do a deal that greatly reduces the chances of that happening? Perhaps they could use some debt or have it funded via a contractor balance sheet? The increase in the gold price only helps funding.
We may get a little pull back in the gold price in the short term, but it’s trending higher. I am a buyer of any dip from here. There are still a few things to iron out, but I don’t lose sleep on having this up and running. Bc8 only has 220m shares on issue. I’m just holding the stock over the longer term. Short term share price is anyones guess. Dyor.