Hi Autosime,
I don't think there was much duckhead spend last quarter as the approval to begin work came late September. So I would put the AISC at US$400-500. But let's not quibble about small amounts.
Another advantage is that the processing can be done without decreasing the throughput of other ore through the mill much. Presuming the mining rate is up to it. So it increases the efficiency of the whole outfit.
I think we should forget the supposed debt free date - that went out the window with poor management. Particularly the delays in getting the mining equipment on site blew projections out of the water. Very costly. It will be 2018 before BDR is debt free.
However there won't be a need for new crushing capacity. New management has worked out how to get the current equipment to process the sulphide ore adequately.
Yes the U/G will need to be funded. But the funding won't be needed until the current debt is paid down. Presuming the gold price stays above US$1050, and as you say that there are no further issues. But these seem far less likely with current management. And the upside with the Neo lode and the new exploration success at Urucum is considerable.
Cheers,
Tim.
BDR Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
