The simple equation is that cash costs of production are higher than the average selling price. Unsustainble for too long. Some of the costs were capitalised, however, net/net still unprofitable accounting for this - at a time of record high gold prices.
You are correct in that the Western zone, coupled with right-sizing of the workforce is the prudent option to make this business profitable.
If it cannot be turned arund in 6 months - 12 months tops - nothing will help BCD or MAK. Neville Bergin was a senior manager at Goldfields Aust, so hopefully he has the mettle to make the required changes.
BCD Price at posting:
40.5¢ Sentiment: LT Buy Disclosure: Held