Enjoyed your post Richie, fair and reasoned. I’m probably an...

Enjoyed your post Richie, fair and reasoned. I’m probably an eternal optimist but I do try to look at things objectively and I do understand BGL’s project quite well (for me). Part of my post is to inform, part is to safeguard and hopefully increase SH value. I’ve a week off in the UK so have had the time to dig deeper including getting the views from a couple of ex GGG directors. Here’s what I posted in the UK earlier, I’ll copy paste as it covers my thoughts.

'Just an update of how I see things, and where I think this is going for BGL/BAB. I’ve spoken to some former GGG directors and exchanged some thoughts with a few retail guys as well.

For the record I’ve noted the holdings of 37 investors ranging from a few thousand to many millions. Currently and collectively we control 57m (16.6%) Everyone has expressed a strong desire to ignore the offer and the general feeling is it needs to be double figures (> 20c) to get anyone really interested.

The Norton bid (Owner is China's largest gold producer, Zijin Mining) may well actually be positive for BGL. The reasons I say that are that if Zijn are interested then they have basically said, BGL is commercial and we want it! They have given it a minimum value as well so Brett can go to financial dudes and use that to raise funds after this bid, if/when required.

I think this will play out in one of two ways.

1. The way we probably fear it will go, is Norton offer flops but they get 15%. They up the bid and get 30%, they up the bid again and get 40%, eventually making it to 50% at a much higher figure than 3.9p (7c). We have a change of owners and Zijn people are brought in, which being Chinese owned/controlled we don’t trust. (this is an historical issue for old UK GGG investors)

2. A possible / likely way scenario, bid flops, they up it enough to eventually be happy with 20- 25%. BGL have a new major SH and Zijn have the prime seat in Bullabulling. Brett carries on, Zijn are happy to under-write fund raising/placing when required and gain another 5% to 30%. DFS is completed, Zijn are happy to finance the Capex and in exchange want rights to buy 50% of the gold produced. Those still holding are happy they didn’t sell out at 3.9p and praise me for keeping them invested. OK maybe not the last bit.

Either way Zijn have brought BGL to the attention of everyone that it’s commercial and desirable. This is a good thing. The bid is far too low to gain much of the company and Zijn must know that. It is imo an attempt to position themselves as in scenario 2, as the main player and main shareholder. But I do not think atm, they actually want or expect to get more than 20% of BGL/BAB.'

I understand your points about Oz mines getting sold etc, but of all the mines Zijn controlled Norton could go for, they went for BAB. One has to ask why us over everyone else? For me it’s because BAB have 3.75m oz (v.large) and a likely reserve of 2.5m oz with currently indicated C3 cost of $930/oz. I expect that to be easily sub $900/oz, possibly sub $850 after all the DFS is done and that’s cheap for so much gold in a safe country. My concern is that we long suffering SH’s get value for our asset and investment. We do in a varying degrees own this asset. UK retail have 100% firmly rejected this offer. There were two sales today in the UK, one 28k and another 50k.

NGF have pitched this offer incredibly badly imo. They simply can not achieve a TO at 7c and must know that. I not convinced they would achieve 50% even if they offered 15c - 20c. I don’t know how this will play out. Insti’s will have the deciding factor but they have high averages as well retail do so I’m certain they aren’t looking at 7c and licking their lips. UK retail of at least 16.6% are insulted by this bid. I hope our Ozzie cousins are equally insulted and not remotely tempted.

IMO Zijn will have to up the offer massively to achieve their goal, be that a TO or a decent %.