Hi all. Lot's of good discussion and some very direct and...

Hi all. Lot's of good discussion and some very direct and difficult questions being asked.

I've just taken some time to listen to the BRR and it does seem pretty clear that the company presently intends to get out of Africa completely. (BTW One Powerball - Mali is a landlocked West African country located directly east of Mauritania). MF's words in the BRR were "we used to be an Africa focused company - we are no longer an Africa focused company" and "the Africa assets, while we still have them, we don't intend to have them for much longer".

Not much chance of misunderstanding that!!!

I think that the broadcast also gave the answer to the question many have asked here - why get out of Africa? MF clearly says that these assets are expensive to own. By that, I understand him to mean that they cost lots of money both to develop and even just to hold them and meet work commitments. I think that it's not much of a secret that BKP is struggling financially and is effectively not that far from technical insolvency. A cap raising at these prices would probably see them avoid real problems, but for how long and at what cost to the future of the company.

Lets assume they need $5m to make them comfortable for the next 12 months (i.e. get current creditors off their backs and have enough left for admin costs). That's 100m shares at 5c!!! They still need money from somewhere to undertake this Columbian drill program in order to get cash flow to remain in business. Where the heck is the money going to come from to keep up commitments for the West Africa dirt?

Unless Buzz Lightyear charges in to rescue them, things are not looking too positive based on what we have in front of us at this time.

I think the company is really doing about the only thing it can (without turning into that much despised animal the typical Aussie junior oiler that survives by issuing scrip, consolidating, then issuing more scrip until one day it either can't get any more money or it lucks into some deal that gives some form of future security - while having 2 billion shares on issue - g'day LIO, VPE et al).

This company needs cash in order to develop assets that will give it cash flow, so that it can stay in business. It no longer has the reserves or market support to see the development of the West African assets through to completion so it seems to me that Columbia is maybe the only thing that can keep them in the game - and they still might need Buzz to make it all happen.

I guess there is a possibility that immediate success in Columbia resulting in early cash flow, might give them some breathing space in Africa, but MF certainly didn't sound all that positive about it.

You never know, stranger things have happened.

Cheers

Badfish