Hi Colinchi I don't think that going from an owner operated set...

Hi Colinchi

I don't think that going from an owner operated set up to a contractor indicates an admission of failure on their part.

There are many reasons other than production concerns which make it more cost effective using a contractor. From a tax perspective, using a contractor who have their own machinery means that BDR get a 100% write off of those costs in the period in which they are incurred, this is not the case for owner operators running their own gear.

From my own experience working in the mining industry, I would vastly prefer BDR to be using contractors than employing their own permanent staff to move dirt. I think contractors work harder, more efficiently, it's easier to scale up or down, there aren't ridiculous redundancies built in, lower insurance costs etc.

Boyd Timler is already spending half his time in Brazil and he has an outstanding track record.

I think we're going to have to agree to disagree with respect to our assessment of management, I understand your position, I guess I'm just not as critical of current management as you are.

Cheers
Ivan