Qtly Report Update

The bad:
The 7Kozs at the end of the qtr are included in the cash and bullion of $44.6M.

The badder:
BDR only paid off $500k against the loans as stated in the qtly. Other loans increased to off-set $5M loan repayment.

The  baddest:
AISC is understated by about A$500 per oz. Ore at cost balance at 30Dec was $30.2M, ore at cost balance 30 June was $57.9M.  $27M of cost added to a stockpile of ore that didn't actually change. The BDR costing model has been adding cost to the balance sheet when it should have been expensing it.

Profitability is marginal. The first half year was a big loss.

Sources: Direct contact with BDR and published finance reports.

The reason the cash/loan balances don't reconcile to the qtly performance figures is because real costs are a lot higher than we are lead to believe.