Good post but in the words of Mark Twain, "Denial ain't just a river in Egypt."
The company may have bought themselves a little more time by rolling short dated amounts owed into long dated amounts but the bulk of the debt is not going away unless MACA and other creditors lose hope and turn their debts into equity in which case it’s not much different to the company reaching a compromise with its creditors through VA and a DOCA. The only difference being the company and shareholders get to hold onto the mine instead of the secured creditors gaining control through their receivers and managers. Based on what you said there could actually be intrinsic value in BDR once it proves that it is capable of generating enough cash to extinguish its debt or after an equity deal is done with its creditors but personally I think you would be very brave to buy before the next quarterly result is published. No matter how they spin the AISC numbers the next quarterly will show investors whether the debt pile has contracted or grown.
As for being confident that the commissioning of the “new”mill is complete, I wouldn’t be so sure as the transport strike in Brazil may have delayed delivery of components. BDR was conspicuous in their absence of market reporting of the strike. Other companies with operations in Brazil saw the need for disclosure. Apparently BDR’s operations remained uneffected. Maybe the strike didn’t extend to their operations. Esh
BDR Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
