10 weeks into a strategic review now. How long does it take to make a decision on which direction BDC should head?
Are they just looking at what the possibilties may be available going forward or are they actually looking at deals now?
If it is just to look at what BDC should do, then a decision should've been announced by now imo. There is only a limited number of options available to the company including:
1. Continue exploration of the current project to increase the jorc resource and lift the reserves further to give a higher lever of certainty to the project whilst waiting for the labour market and material shortages to stabilise. If this is the preferred option then what targets do they expect to reach and what would the timeframe and cost (dilution) be to shareholders?
2. Just sit tight and reduce spending to an absolute minimum until conditions improve or an offer to sell, merge or toll treat the ore comes along.
3. Actively look at merger possibilities, outright sale of the gold assets or a toll treatment option.
4. In-specie the manganese assets to current shareholders and start an ipo whilst waiting for one of the above options to materialise.
5. Spin out the manganese assets into another company, then sell the gold assets and look at becoming a battery metals company.
Without any company feedback, it's hard to know just what, if anything is actually being done here. The agm would've been the time to update holders.
BDC Price at posting:
38.5¢ Sentiment: None Disclosure: Held
