Morning Trading June 16, page-3

BC8 holding on to the gold they are producing, better than cash in the bank, nice strategy

HIGHLIGHTS (All amounts are in A$ unless otherwise stated)
• With increasing production, Black Cat’s strategy is to build up and retain a minimum of ~$20M (~4,000
oz)of production in dedicated gold bullion storage. To the end of May, ~$24M (~4,500oz) has been
retained and is in storage. Cash will continue to be retained for growth and working capital purposes.
• The bullion is trading stock to the Company and as such, will be valued at the lower of cost and net
realisable value for accounting and income tax purposes. Accordingly, unrealised profits on the bullion
will be recognised by regular revaluations as opposed to sales, and then realised profits taxed at the point
of eventual sale.
• Investors seeking leverage to gold, both in bullion and Resources, can now consider an investment in an
unhedged Black Cat. In addition to our bullion, we have ~2.5M oz of gold in a growing Resource base.
• Gold is a high-quality, liquid asset that is free from credit risk and accepted across borders and has a
history of retaining its purchasing power (Figure 1).