Hi Charlie Boy, IMO getting the Financial Accounts up to date is the first task on the list if the new Board expect to get relisted. The half year report for the 30/6/2020 was unreviewed meaning unaudited when published and the year end report 31/12/2020 has not been presented as yet. I believe the company should have filed this report with the ASX within 2 months of the years end. Now some 4 months late. Maybe Mackenzie and Riley did not want to let the world at large know the depths to which they have sunk the company or maybe the Accountants in Senegal have not prepared the subsidiary's financials for incorporation into the Group's report. We realise by now how slow things get done in Senegal.
If the new Board decides the project remains feasible, I hope they actually hire the services of a competent accountant to prepare the necessary capital budgets because it appears to me there is no one presently in the organisation that could prepare a household budget let alone one for a project of this magnitude. Based on what has been achieved to date, the 12.1 US$ finance package was about half of what was really needed. If the old Board was relying on what they had stated time and time again in the past that they had never had trouble raising capital when needed. Then they were sadly mistaken. Given their poor performance in meeting stated goals, IMO they had theirs and buckley's chance of raising the additional 20 or 25 million needed through share allocations.
I am hoping that the new Board can refinance a deal whereby Coris is paid out and the additional funds to complete the plant upgrade can be obtained on more suitable terms. No doubt existing shareholders will have to support the company by taking up more shares but if they can see a clear and concise plan to achieve production I feel they would be happy to do so. As long as they are not asked to contribute with no clear plan only to see their support disappear into the unknown. Such expenditure being broadly classed as Exploration or Development with no other real explanation as to where all our money has gone. We still do not know.
The feasibility plan as provided to us from the previous Board was a complete lie. Nothing more to say about that other than the only way you could have determined this to be the case has only come to light with the passage of time. To solely blame Covid 19 for where BSR is presently at would be just another convenient lie.
If it is decided to finish the plant upgrade and get to production I would like to know the following:
What additional plant and equipment is needed to complete the upgrade and its cost on site.
What other development and infra structure work has to be undertaken and its cost. Roads, Dams, Waste areas, Gold Vault, POD ETC
An approximation of timeframe for all work to be completed including installation and commissioning the plant and the additional working capital to see the company through until then.
Who is the mining contractor now? When will they start mining and will the processed dirt be stockpiled enough to allow full production to commence once the upgrade is completed. Will funds be required to get this happening, if so how much?
Sorry, I am so skeptical, but I am not willing any longer to see millions of dollars being reported as being spent on development costs and/or plant and equipment only to realise at the end of the day, plant and equipment needed for the upgrade is still missing scattered all around the world and for the millions spent on development, the only thing I think I can be sure about is that a wire perimeter fence has been completed and boy that seems to have taken forever to achieve. At what cost I have not got a clue. 1/2 a mill? I know BSR spent over $600,000.00 on computers and software. Was that included in the feasibilty study?
Where did the $900,000.00 Mackenzie apparently lent to MGO by selling or mortgaging his house go. Your guess would be as good as mine.
On the positive side, if there really is 176,000 ounces of gold in the 4 pits then at todays gold price that is $429,858,880.00 AUS$. If the Board can keep the all in sustainable cost to 1,300..00 AUS$ per ounce that would amount to $228,800,000.00 AUS$ leaving an approximate net return of $201,058,880.00 AUS$.
Our share including repayment of loans to MGO (approx. $50 mill) would be in the vicinity of $148,220,000.00 AUS$. Not bad.
The old Board although touted as friendly and approachable with any questions you may have had, now appear prone to telling some porky pies at times. Let us hope our new Board is not.
Here's hoping.
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