cash boost and mine plan

Good to see that BAB received a cash boost of $2 million R&D tax incentive, and the potential for another one. These boosts come at a good time.

BAB has some hard working management who seem to be manfully plugging away at limiting dilution, saving costs, raising capital, and optimising the DFS. None of these tasks have been easy in the current gold environment.

http://www.proactiveinvestors.com.au/companies/news/45265/bullabulling-gold-gets-cash-boost-but-delays-dfs-45265.html

The DFS has been delayed, but that is to save costs, which is sensible, there is little point in trying to raise money in such a low price environment, better to use the tax incentive money, and just shuffle things back a bit.

C1 cash costs in the PFS were $1,145, but this will almost certainly come down as the DFS gets tweaked further. The IRR was 15%, but this should rise with the final DFS.

These guys are examining everything in fine detail, and focusing on being super efficient, so there is not much more that shareholders can ask of them at this stage.

The sticking point is still the $300 million cost of the build. This simply has to be radically reduced in the final DFS, either that, or Gold has to go to $2,000 an ounce (which is my preference).

http://www.proactiveinvestors.com.au/companies/news/45116/update-bullabulling-gold-unveils-new-lower-cost-mine-plan-45116.html

The project economics will continue to strengthen, it will be a long haul, but with a little bit of luck, and the hard work these guys are putting in, they may just get there in the end.

Gw