BDR 0.00% 6.5¢ beadell resources limited

Hey guys I called the company and got a few answers that I...

  1. 1,065 Posts.
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    Hey guys I called the company and got a few answers that I thought I'd share:

    1) The need for $60 million loan is due to the company's desire to pay back mac bank $54 million and gain greater flexibility. The essential fault with the mac bank facility was the currency exposure. Whereby an appreciation in the Brazilian real has been detrimental to the fx contracts held in the terms of the mac bank loan. Therefore, through relieving themselves of the mac bank facility currency fluctuations do not detriment bdrs bottom line.

    2) the md still believes the company will be cash flow positive by year's end due to dry season and therefore an ability to mine higher grades.

    3) I asked about the desire to process 5 million tons of ore through the plant. I was assured that this is still a relevant target. However, the wet season made the ore impossible to even feed through the mill due to its density from rain.

    4) I asked what is to prevent bdr being a 6 month operation due to weather and was told that greater gold oxide exposure and deeper pits should stand the company in better stead in the coming years. Greater oxidation and deeper pits means more stable ground to run the 777 cats, which have 120 ton payload, as opposed to the 30 ton moxies that were forces upon the company this wet season.

    Md believes sp is very under valued and sees the company with minimal capex in order to take the company forward due to high value initial purchases such as the 777's and lieber digger.

    Hope this was informative. Glta
 
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