eye opener part 1

Please note: This is not all of the announcement.
For the full unedited announcement,
go to www.burdekinpacific.com.au
then go to Investor Centre,
then go to News Releases
Read Shareholders to choose between alternative boards

In my opinion, it clearly highlights why bks should be left with the current board. Part 2 will follow.

"Burdekin Pacific Limited ASX Announcement 1 November 2004 – Annual General Meeting Burdekin Pacific Limited A.C.N. 059 329 519 Level 13, BGC Centre 28 The Esplanade Perth WA 6000 Phone: +61 8 9322 6045 Fax: +61 8 9481 5557 Email: [email protected]
Enquiries regarding this announcement can be directed to either: Mr Jerome G Vitale Director and Chief Executive Officer or Ms Susan J Field Executive Director and Company Secretary Phone +61 8 9322 6045

1 November 2004
Shareholders to Choose between Alternative Boards
Notice of Annual General Meeting

8. RESOLUTIONS 5, 6 and 7
Election of Messrs Lindsay Arthur Colless, Peter Lynton Gunzburg and Colin David Patterson as Directors of the Company (These resolutions will only be put if a General Meeting called for 17 November DOES NOT GO AHEAD)

The above three individuals were nominated as directors of the Company by Bikini Atoll Investments Pty Limited ("Bikini"), a company associated with Mr Brian Thornton, who is its sole director. It is also a member of a group of eight shareholders who between them hold approximately 6% of the Company’s issued capital.
Of the eight shareholders who have called the meeting for 17 November 2004:
• three are associated with Bikini’s Mr Brian Thorton, who is also a former media advisor to the Company and a director of rival junior explorer, Gateway Mining NL ("Gateway");
• two are associated with a former director of the Company, Dr Craig Rugless,
• two are associated with RFC Finance Corporation Pty Ltd ("RFC") and one of its directors Mr Stephen Allen respectively; and
• the eighth is Mr Colin Patterson.

The Directors, Messrs Vitale and Tomich and Ms Field DO NOT SUPPORT these resolutions and STRONGLY RECOMMEND that shareholders VOTE AGAINST Resolutions 5, 6 and 7. Mr Bennett as independent Chairman abstains from making a recomondation.

9. Why you should NOT SUPPORT Resolutions 5, 6 and 7
Messrs Tomich and Vitale and Ms Field sets out the following reasons why they believe IT IS IN YOUR INTEREST TO SUPPORT THE CURRENT BOARD and vote against the election of the nominees put forward by Mr Thornton, Mr Patterson, Dr Rugless and the companies associated with RFC.

9.1 Current position
• The Company’s major asset the Mt Kasi gold project.
The Company continues to report very positive drilling results likely, in the opinion of the directors, to result in a substantial increase in gold resources and reserves at Mt Kasi – refer to details on our website at
www.burdekinpacific.com.au, under "ASX Announcements". Based on the initial target of 250,000 ounces of reserves (being the objective of the present drilling programme, which is expected to be completed within 2 to 3 months), at the current gold price the project "base case" scenario discussed in the 2004 Annual Report, has the potential to generate at least $150 million in revenue for the Company.
In the 2004 Annual Report, the Directors report (at page 6) that a valuation completed two years ago indicated (and included in the 2002 Annual Report) that the project had the capacity to generate after tax cash surpluses in excess of $40 million, equivalent to approximately 9.4 cents per share in future net cash flow for the Company.

These indicators are BEFORE taking into account the impact of any additional ounces identified from the current drilling programme, or the "enhanced case" scenario (discussed by the Directors in the 2004 Annual Report at page 15) that might flow from ongoing exploration within the Company’s tenements beyond the immediate mine environs.

• Burdekin has a Successful Track Record as a Project Developer and Gold Producer Between 1994 and 1999 Burdekin developed, financed, constructed and operated the McKinnons Gold Mine in New South Wales with a very capable technical team assembled by the managing director, Mr Jerome Vitale. Under his leadership, Burdekin was one of the lowest cost open cut gold producers in Australia. With careful planning and execution the Company seeks to repeat a similar performance at Mt Kasi.

• Your Board is in the process of finalising a plan to refinance the debt of $3.5 million maturing on 28 February 2005 (details of debt previously disclosed in our 2003 Annual Report and in numerous ASX announcements thereafter). Exploration results to date and the underlying value of potential cashflows generated from the project will assist in this process. However, the process can be destabilised and would certainly be delayed if operations were halted while a major review was undertaken (as suggested by Mr Patterson).
The Company is engaged in a standard mining industry process for new project development. Drilling, completion of a bankable feasibility study, development of a detailed environmental management plan, followed by financing, construction and gold production. The development of the project is making steady progress along this path and a cursory reading of the Company’s comprehensive disclosures in its recently audited financial statements would quickly highlight the issues faced by the Company at this time. Contrary to what has been suggested by the convenors, these factors demonstrate no review is necessary.
The Board is acutely aware of the challenges and issues presently faced by the Company and together with management is singularly focussed on dealing with these matters as the Company moves forward.

• The Company presently operates with a properly functioning and united board. The Board currently
comprises four members, two of whom are non-executive directors, Mr Martin Bennett, an experienced legal practitioner, and Mr Bruce Tomich, an ex resource industry banker and geologist, both of whom act with
independence of mind and of judgement. There are appropriate accountabilities in place and a common objective to maximize value for ALL shareholders. For additional information refer the Company’s Corporate Governance statement in 2004 Annual Report at pages 45 to 48.
• Under current management, the Company has made recent technical appointments to further strengthen and add to the depth of the project team working in Fiji (see 2004 Annual Report at page 23). With Mr Tomich recently joining the Company, along with Mr Vitale there are now two experienced project finance specialists on the Board, plus an experienced financial controller and public company administrator, Ms Susan Field. It would not be in the interests of shareholders to remove these people at a time when the Company is about to go into a stage of its development when their skills and experience are most needed.
• Shareholders have already voted - the meeting called for 17 November 2004 has been called by essentially the same set of shareholders who called the last meeting in May 2004 to have Mr Vitale removed as a director. At that meeting, 76% of voting shareholders rejected the proposal and Mr Vitale was re-elected with a significant margin of shareholders who voted at the meeting.


Constructive comments & discussion please.
I hold bks
Always seek professional investment advice before investing & please read below.