A couple of thoughts from the results.
1. We hadn't heard previously that Beadell were offsite at Duckhead for a period of time while 'a legal framework was arrived at with the Brazilain mines department' for their working on Zamin's tenement. I would have liked that to be disclosed at the time. But it makes sense of why the timelines at Duckhead blew out at the end of last year. Going forward, we now have this legal framework in place and can look forward to more certainty.
2. Yes $13M is a small profit. But some of the fluctuations are one off. The marking to market of derivative instruments won't occur again because Beadell is now unhedged.
3. The increase in the Australia dollar value of the $US loan comes as a hit to profit. Who knows there might be another one if the AUD slips further. But if it goes the other way, then it goes the other way. If it stays about the same, then BDR profit won't take the hit it took this time.
4. The amortisation of the capitalised stripping costs at Duckhead look to have been accelerated to complete with the completion of the current mining. That means that a future cutback at Duckhead will only be expensing the pre srtipping costs of the cutback itself, the stripping to get the mine to its current state having been fully amortised.
5. The commentary on new sources of ore at Tucano was very encouraging. Finding reserves at the surface where infrastructure is already in place. It doesn't get much better than that.
Cheers,
Tim.
BDR Price at posting:
32.7¢ Sentiment: Buy Disclosure: Held
