forward sale of gold

5 West Street, Beaconsfield, TAS 7270
Telephone (03) 6383 6500 ? Facsimile (03) 6383 6590
BCD RESOURCES NL
5 West Street
Beaconsfield TAS 7270
T (03) 6383 6500
F (03) 6383 6590
E [email protected]
ABN 22 057 793 834
Forward Sale of Gold
18 November 2011 ASX Announcement
BCD Resources NL (ASX: BCD) advises that it has secured a strong price for a portion of its planned gold deliveries over a short term period. BCD has entered a forward sales contract with MKS Australia Pty Ltd (“MKS”) for 7,000 ounces of gold over a 3 month period at a price of A$1,747 per ounce. This facility represents around 50% of BCD’s weekly production forecast out to mid-February 2012, which is when BCD’s convertible note debt of $11.8 million (including interest) is repayable. This contract has the support of all secured convertible note holders and gives MKS first-ranking security over the gold held from the weekly delivery at any time during the term of the contract. (BCD has a gold refining agreement with MKS.)
BCD Resources CEO, Peter Thompson, said “This hedging facility gives us some certainty of high prices for 50% of the gold production planned prior to the full repayment of convertible note debt in February 2012. The BCD board well understands the risks associated with committed hedge contracts, and gave careful consideration to the type of facility and the terms of contract entered into with MKS. The facility is flexible and allows the Company to take advantage of higher spot gold prices as well as provide some assurance on the downside, should the gold price fall in the short term. For the month of October, mine production continued to improve, with production of 4,810 ounces at a cash cost of A$949 per ounce. BCD looks forward to continued strong mine production, lowering operating costs, and the certainty of strong revenues from gold produced, enabling repayment of the convertible note debts due next year.”
For further information contact:
Peter Thompson – Chief Executive Officer
BCD Resources NL
t: 61-3-6383-6500
e: [email protected]