The biggest issue here, IMO, is that serious investors can no longer trust management accounts or narrative. I believe that they have been intentionally deceptive. They have been caught out with slight of hand a few times now and thus, once trust is gone, the larger institutional (active) investors will not touch it again.
Operationally there are obvious issues too:
(1) Strip ratio is high for the grade
(2) Wet season creates constant issues year after year
(3) Mining contract, whilst undisclosed, is likely highly punitive to BDR due to the situation BDR was in when it was entered into
(4) Mill upgrade to handle sulphide ore presents execution risk (especially given BDR history)
So for investors, the carrot of "gold everywhere" is losing its lustre especially as the years of drilling and promises have not delivered the increases to R&R that many of us initially hoped for.
If gold goes through the roof then BDR will likely be one of the greatest beneficiaries given its precarious state at present. If gold doesn't, then ...well ... only invest what you can afford to write off IMO.
Cheers
John
BDR Price at posting:
8.9¢ Sentiment: None Disclosure: Not Held
