Ann: Change of Director's Interest Notice, page-17

Hi chrisman, as I didn't want to get drawn into all the inappropriate critique of SJ and team's financial reporting transparency, I abstained from posting earlier. Your recent posts carried a fair enquiring tone, so I decided to respond.

In going back 4 year's annual financials, there is an interesting trend in the ore stock pile ozs and costs:
2016: 117koz at $80M
2015: 135koz at $30M
2014: 148koz at $28M
2013: 196koz at $23M

Worzel mentioned that when he spoke with the CFO regarding the Dec16 qtr report, the CFO made reference to the costing model. My take on it is that BDR changed its gold ore costing policy in 2016.

Given that the annual financials are audited, I have no reason to suspect that the new costing policy is not in compliance with Australian or international accounting standards or that the auditors did not comply with the Australian or international auditing standards. It is a Board's fiduciary duty to disclose all significant matters in their report as contained in the annual financials. Also, it is the auditor's legal duty to qualify the accounts if they have good reasons to do so.

Some posters are clearly dissatisfied with the info made available. But any allegation of breach in duty can become serious litigation matters that require proof beyond reasonable doubt. I have sat on a few jury panels and each time the court reminds us that the defendant is innocent until proven guilty. In fact, the defendant is entitled to remain silent, much less provide proof of innocence, because it is the plaintiff's responsibility to provide the proof of guilt.

I'm more interested in understanding the costings of the ore stockpile than in commenting on the Board. Clearly, it is a puzzling matter that goes back to PB-and-team days. Until I have clarity on it, I am happy to rely on my own reasonableness test on the ore valuation, being:
90% recovery x koz x AUD pog x 50% in-situ above ground valuation factor = $82M.
Other shareholders may have different reasonableness tests.

Cheers. R.