I'm not sure of the date of that particular announcement but it may be from the time when MAK were going to lend BCD the full $15m (after the loan from Bendigo Gold fell through).
MAK advanced $8.5m to BCD but then had a closer look at the books and had a change of heart - even wanted their money back.
BCD had basically been operating at a loss. They needed further capital to upgrade equipment and also to start mining the richer and recently discovered "Western Zone".
After further discussions MAK agreed to leave the $8.5m loan in place and the balance of the money was provided by other new investors. The major new investor was one of the mine contractors - he's now on the board.
The market was jittery and there was sell-off after sell-off with each failed funding arrangement and then Bendigo Gold dumped their 10% stake at a loss. That's why the share price went so low (IMO of course).
It would be interesting to calculate how many shares were traded while the SP was sub 2c. I wouldn't mind betting that today's volume would have flushed out most of the profit-takers who bought in at the lows. Perhaps that's why there wasn't much resistance towards the end of the day.
You can bet your boots that there would be a lot of people holding from much higher levels who won't be selling any time soon.
It was noted on a previous thread that the income only had to immprove by 20% or so to get this company in the black - this could just about be accomodated by the recent increase in gold price alone.
Anyway, these are just some of the reasons why I feel the SP is going to climb from here. If a contractor at the actual site can see enough potential to put in millions of dollars then that has to say something. I take comfort that he is on the board and will be working his butt off to make sure his investment succeeds.
BCD Price at posting:
24.3¢ Sentiment: Hold Disclosure: Held
