Ann: Makabingui Mining Development, page-28

The last time BSR traded at 1 cent was 5/4/2016, 13 days off 4 years ago. Indeed this is a tragic turn of events, but also a significant opportunity for sophisticated investors with the funds, to jump in or expand their existing holdings at bargain basement prices. The only downside is that any long standing shareholders who are not offered the same opportunity or are not in the financial position to act can do nothing but watch their interest in the company slowly being diluted away. That's just part of the risk I suppose.

The old adage that "time is money in business" basically refers to the fact that lost productive time generally will cost an enterprise money. Associated with this is the concept that the longer it takes an enterprise to achieve it's stated goals, the higher the risk of it never achieving them or, if eventually successful it will only be at some increased monetary cost and/or some lost possible opportunity. Just what this total cost or lost opportunity has been or will finally be over time in BSR's case I suggest we will really never know.

I know the gold price is heading back down (not the safe haven it once was - apparently cash is king especially the US$). I know Senegal reported on the 14/3/2020, 24 cases of the Corona Virus were detected in the country during a 2 week period. I know the President, Macky Sall banned Senegal students studying in China from returning home and closed all schools, universities and religious festivals for 3 weeks. Given the human tragedy and and economic turmoil that this virus is causing across the whole world today, I cannot see Senegal escaping completely unscathed. Just look at what has happened here at home in the past few days.

BSR has had to face supposedly many unknown hurdles over the years causing delays along the way. Artisanal miner problems, having to deal with a slow and at times inactive Senegal Government bureaucracy, delays in the final drafting of the finance documents with the Coris Bank consortium (apparently one of the four lenders in the consortium withdrew and a replacement had to be found), delays in the release of funds to pay suppliers for plant and machinery by the US banks ( put down to the Chinese/US trade war at the time), leading to delays in shipping, delays in appointing a mining contractor acceptable the Senegal Government and now possible further delays due to the Corona Virus. Just what these further delays could be I have no idea, but I can't be sure they will not eventuate adding more time to achieve BSR's stated goal of 6 years ago. It appears it has been one delay, leading to another and then another and so on. Who knows with any certainty were the real blame lies here? That is not important right now.

My point is TIME definitely brings with it added cost and potential risk to any business enterprise. I cannot help but feel that if the Executive Chairman's previously stated timelines as to first gold production had held any truth to them whatsoever, then BSR and it's subsidiary MGO would have been in a much healthier position to stave off this latest enemy at the gates. Like an individual or family getting by pay cheque to pay cheque ( in BSR's case CR to CR) now suffering a whole lot of pain as the pay cheque is no longer there. They have had rely on previous savings or seek some Government assistance to get through these troubling times. To my knowledge BSR definitely has not had the opportunity to save any money as it has not produced income from one ounce of gold as yet. It still has not got what I would call a bankable timeline as to when any income maybe forthcoming. BSR's only ongoing lifeline for years now has been via capital arisings and to a smaller extent part of the finance package. No news of the increased finance from Coris. Have no idea what happened there. No doubt the final outcome will eventually come to light.

I would not be surprised to hear that the company was once again cash strapped. The 31.12.2019 full year report will not enlighten us much with regard the present cash position. The March 2020 quarterly report will, but that is not due out until around the end of April. So we will just have to wait.

TIME! Exactly, how much has BSR got left? At this late stage of the game let us all hope and pray BSR does not run out of it all together. With all the variables in play this is still a definite possibility and that is why the SP is 1.1 cents.

I have heard offers have already been made been made to buy out the company. They were turned down. For interested parties with the money allowing them just that little more time, I don't doubt they saw an opportunity to acquire BSR and it's joint venture partner's interests at a bargain basement price at the time. There are people out there that would pay 5 times BSR present market value for a luxury yacht. Though, I would not get excited about their likely offer for BSR at this point of time. With forecast production 4,167 ounces a month ($5,833,800 US$) none of which has been produced as yet. Together with all it's unknown total associated costs, number of fingers in the pie and potential other business operating risks makes it just to big a gamble at this point of time for anyone to make a serious offer. It maybe a simple case of lets see how they go first and prove the existence of more gold resource.

I am not here to breach doom and gloom or to predict a major success with untold wealth for all. I do not believe anyone that posts on here has access to the information required to allow them to do so with any degree of certainty.. It is just a comment based on present and past facts of which I am aware and a basic knowledge of some components of risk associated with time.
"It ain't over until the fat lady sings" definitely applies here with BSR.

If anyone out there can provide at this time with Management's bankable date for first production and BSR's balance of cash at the moment I would greatly appreciated it.

Using the words of Spock I would like to say to you all "live long and prosper". At this time never more meaningful.