In response to some less accurate information about the health of the financial position of the company, I felt it is important to post what has been announced by BDR. In their interim financial report in August that discussed the financial position up to end of June 2017, the company said: as of 30th of June
2017, the Group has $34,692,000 of debt due for repayment in the next 12 months. The debt repayments will be funded from operating cash flows. The Group held cash on hand and on deposit as at 30 June 2017 of $31,278,000.
The company negotiated less stressful loan repayment schedule till 2019.
In September quarter the cash on hand at the end of September was $18.1m.
The company made loan repayment in October of US$2.5m
The net cash on hand is A18.1-3.25= A14.85m
In view of production update of 50,000 oz
And with average gold price of $1279 for October
$1281 for November
Expected for December to be around $ 1270
The average for the quarter will be$1275
The expected cost of production $800, I raised that figure from $700 due to decrease of production from 60,000 to 50.000 oz
Profit margin $475
Net cash flow 50,000x $475= $23,750,00m that is in US dollar which = 23,750,00 x 1.31= A$31.112m
Cash on hand at end of December A$31.112m+A$14.85=A$45.963m
Debt on hand of $34.692 x1.31=A$45.44
Based on the above scenario, we are debt free if the company decided to pay all its debts by end of December. The reality is we have until 2019 to settle Santander loan.
I say it loudly No No No need for capital raising especially with rising gold price and access to 10,000 of deferred high grade ores next quarter and plant upgrade which is going on schedule and according to the its budget which is financed from operating cash flow.
Hope that clears the dust and confusion especially from Col ( hope you lose your short position).
Cheers, my thoughts only
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