'Second question. How do you value this company, when nothing seems to go as planned? Suppose they manage to sell 150koz at AISC of US$1000; allow $100 per oz for other costs. Say gold averages US$1200.
That's $15M profit for the year. That would mean that the valuation of the company by the market is currently generous. Just shows how sensitive to sub optimal performance the valuation of a mining company is. If they hit their targets the valuation would be triple that. '
Tim, the only issue I have with your $15M profit assumption is that your figure does not appear to allow for the one thing the company cannot influence (apart from the POG in USD), and that is exchange rate trends that currently allow for a substantial windfall to be realised by BDR, via a sizeable reduction in the CODB (90% BRL) as well as an increase profit at the back end (in AUD gains). This may eventually change but for the moment the exchange rate trends are pretty clear and this is very good news for an otherwise stumbling BDR.
Having said that, I do not wish to discount the obvious ongoing concerns that certainly need to be addressed IMO. After reading everyone's comments since yesterday's announcements, it's clear to me that the common denominator is a managerial/cultural deficiency in terms of guidance, transparency, disclosure (in a timely manner) and communication in general.
Therefore I will be sending Peter a polite but insinuating letter in the next couple of days, outlining the need for real change.
In doing so I will be asking him how BDR proposes (under his leadership) to properly address these deficiencies for its shareholders, providing aforementioned examples of incompetence. Can I suggest that others who concur (and are prepared to take similar action) address their concerns to
Peter Bowler | Managing Director
T: +61 8 9429 0801 [email protected]
assuming they have not already done so. Guys and gals, now could be your time to make a difference. If we rally together and make a stand, bombard his phone or inbox and say enough is enough, then eventually the power of many might bring about a change in culture.
Wishful thinking? Ok, then if Peter proves that he is not prepared or indeed competent enough to bring about cultural change, then might I suggest that we convene offline, appoint a representative (I vote John if he is interested?) unite as a group and seek the support of the board via the assistance/influence of major shareholders to enforce the necessary changes.
Perhaps easier said than done, however we are already at the point of ridiculousness IMO so nothing ventured equals nothing gained. But to just sit on our a**hols via HC IMO suggests that as a collective, we're not really that serious about our beloved BDR.
) unite as a group and seek the support of the board via the assistance/influence of major shareholders to enforce the necessary changes.
