Top 4 tricks to watch out for at EoFY Q4, when BGL throw the kitchen sink at it:
Taking stopes out of sequence (Leading to expensive bypasses and reduced efficiencies for following quarter).
Stockpiling waste underground and only trucking ore (Leading to only trucking waste for start of following quarter).
Production pressure - Resulting in shortcuts which cost you in the long term. For example - Stopping all waste and capital jumbo drives including decline and only focusing on ore drives (Leading to reduced working areas and ore drives for following quarter).
Deferred invoices until next FY to improve the balance sheet (Leading to higher costs for following quarter and year).
Hint - Whoever is doing DD wants to make sure the next 2-4 quarters are actually there. Based on our track record, I would be sceptical regarding the forecast, particularly if someone else is planning to mine it....
BGL Price at posting:
95.0¢ Sentiment: Hold Disclosure: Held
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