I have been following this debate and would like to thank reddragon for putting forward another point of view, always appreciated.
There is another possible explanation for the multiple increases in contingency though. If you expect the price of gold to increase it doesn't make sense to take out an option for more than you need for a month or so.
So far BDR have hedged or have options on future production of 115,000oz at $1600, 50,000oz at $1700, 48,485oz at $1700 and 20,250oz at $1647 which you would have to say is a better result (with more flexibility) than doing the lot at $1600 to start with.
TGZ was one goldie which was hamstrung for years by selling to much future production to early only to see the gold price rise far in excess of what it had hedged.
Macquarie and BDR have always been close with MCQ advising on the original purchase of Tucano by BDR, their rights issue, funding all of the project finance facility and various other matters. I believe many MQC staff own BDR shares. I see MCQ's continued support as real positive for BDR.
The original commissioning date from the DFS was between the 30 April - 30 June 2012 so they are 6 months late. Their creative raising of finance this year with only one capital raising at 73c has been very beneficial to us shareholders in limiting the damage of this delay.
BDR Price at posting:
99.0¢ Sentiment: Hold Disclosure: Held
