giddy up !, page-225

"But again, I would say that shareholders are likely to anticipate this than actually wait to read about it." You are correct, that's why the shorters have done so well over the last 18 months because we anticipated SP movements before being confirmed by announcements. I can guarantee that nothing has changed and that there is absolutely no chance of "break even operating cash flow in that second quarter". As one poster said once before "they'll have to borrow more money to pay for the fuel to put the rig in the field".

Years ago I was working on a program with guys from Grimwood Davies in WA, not long after their IPO (96 I think?), things were slow and the new "bean counter" had announced to the boys that they weren't allowed to purchase any new hammers (!!!, to those that don't know, a down hole hammer is the key to RC drilling, and new hammers are like cars, they run better than old ones). Well I heard a story (that I can not substantiate), that BLY cut up a UDR1500 that was costing $80,000 a year in depreciation. No big deal most will say, all part of cutting back. The thing is as my drilling friend has pointed out, is that these rigs are no longer made by Sandvik and are considered by many drillers as the Rolls Royce of deep-hole mineral rigs. Their mentality would be that it was not one of our own built rigs and if we sold it, we'd be creating competition. Again most would say all reasonable. My point is that, there will be plenty of this going on and it all hurts the company's ability to quickly and affordably react to an upturn in the market.

BLY is not the first cab of the rank company their propaganda has many believe. Yes they have a place, but its has drastically shrunk in this competitive market.