Ann: Trading Halt, page-35

Past MoM comments have been correct on BGL needing a CR, and it seems that the BGL share price will remain under pressure for the next two years while undertaking the expansion. A very high AUD POG would be very useful to them (and all other Oz goldies obviously).

I assume that the much higher actual costs of production (compared to the DFS) combined with the borrowing costs/repayments, funds needed for previously planned expansion/exploration, and hedging costs have resulted in MacBank forcing BGL to do the CR to reduce debt/risk. BGL will be burning up its ore reserves over the next few years to meet the expansion plans and will need to have continued drilling success to replace and grow its reserves base otherwise they will only have a short mine life once the current plans have been achieved, which would be reflected in a lower share price. The higher production at 250k ounce pa versus the previous plans for around 200k ounces pa suggests to me that the increased scale is there to contain AISC and provide solid operating margins.

MoM guys now talking about a possible threesome - RMS/SPR/BGL - is an interesting idea. At the right price BGL could be of interest to RMS, which has the funds to meet BGL's plans, but I think SPR can successfuly go it alone to restart mining operations.

GLA.

loki (I have not been a holder here, wanted to avoid its former MD who ran GRY into the ground)