Practically the entire Aussie minex and mining sector is currently under water and out of cash. They all bought into the BHP and the Aussie government's 'Stronger-for-longer', '35-year China boom' and none of them saw the crash coming. No one ever does.
Not only that, but half of the gold producers in WA are now going broke with the present ludicrously high production costs and ever weakening gold price.
Just take a look at the would-be-BNR-director / Matsa-CEO Frank Sibbel's old company, Tanami Gold. It's dead in the water. And he was their operations director.
Why is it dead? Unconstrained March quarter cash costs of $A1,990 an ounce, at a then gold price of $A1,570 an ounce.
Exactly the same reason that the present directors of Bulletin have more wisely and more responsibly deferred their production start-up until they can get finance, and other costs down to a reasonable level.
So do you think a repeat of what was done at Tanami Gold, under the proposed new board of directors at Bulletin, would benefit the Bulletin shareholders?
No. It would be disastrous!
They might give you the impression that they can ignore current financial conditions and put Lamboo straight into production, but that is rather like Wayne Swan telling the country that there is going to be a budget surplus. Empty words. No basis in reality. No surplus.
(Don't act on anything I say though. I am not a financial adviser and this is not financial advice)
BNR Price at posting:
3.1¢ Sentiment: None Disclosure: Held
