Ann: September 2016 Quarterly Report-BDR.AX, page-49

Hi V*,

Definitely not planning on making my exit a permanent move and will definitely keep BDR on my horizon. My entire problem with BDR revolves around profit generation (or spending) and the reporting of such.

I am going to outline something for all and if anyone can tell me where I have (if it is the case) gone wrong and explain it to me it might go a long way to changing my mind and re-entering earlier than planned.

AISC was $797 across 39,607 = $31,566,799 in costs
We sold 39,607 ounces at $1,315 = $52,083,205 in revenue

That gives us profits of $20.52m USD, convert this to AUD and we have 26.99m AUD (at an fx of 76c)

We also have 7,248 ounces of unsold gold valued at $1,316 and an fx of 0.76 = 12,717,824

So total of this is roughly 39.70m AUD.

Now our cash and bullion position increased approximately 13.7m AUD and we paid off 0.5m USD in debt as a net position of paying of Santander and drawing working capital. That equates to 0.67m AUD in debt repayments.

So we have 39.70m of value, less 0.67m in debt = 39.03m AUD. However our position increased only 13.7m AUD!

Can anyone explain how we spent $25m AUD in one quarter and whether they think this is reasonable?? It is an ongoing issue for BDR

So yes production has improved, and AISC (when worked out properly on ounces produced) is quite low. Yet we still seem to be blowing inordinate amounts of money without any explanation?

Until this is resolved I will never be 100% happy with BDR.