Ann: December 2016 Quarterly Report, page-13

Hi Guys,

Production only just scraped into the guidance range. Mining was negatively impacted by a pit redesign at Tap AB2. Seems like more fixing errors of the past.

Head grade was very good at 1.8g/T.

Very poor recovery of 82.8% was due to remedial work on agitator blades (a real effect) and a one off adjustment to gold in circuit (an accounting adjustment).

No word on progress of the hydro power connection.
Guidance for 2017 was more of the same.

Cash decreased by A$8M, which is concerning I think. It means that cash generated by the operation is just keeping up with total costs, with the decrease in cash roughly equivalent to the debt paid down. At this rate we'll be hit with another CR in 12 months.

Highlight was more stellar exploration results. But BDR needs to be able to convert gold mined into profit.

Cheers,
Tim