My view is that this is now a total punt, with really bad odds. The financial sustainability will be determined by whether the mill upgrade is successful and whether they can get enough ore to the mill.......Having spoken to simon and watched what has happened over the last 2+ years, I just don't believe there is enough/any management intent/drive to make this happen.....Far more focus has been placed on moving the company to Canada than anything else........So whilst it may have been possible to create a successful company, two years ago, I do not believe there is enough financial strength left to make it viable as it stands..........My guess is that Lundin will take it over and use their financial muscle to invest the amounts needed to make it viable......simon told me that detailed financial forecasts have been prepared and they demonstrate a viable path forward, but shareholders will not be provided this information, only the chosen few will have seen them. The financial info released to market is next to worthless, beyond the fact that the numbers mean little, there are too many parties who are owed a lot of money and can change the situation on a whim - The loan that they have been forced to retain can be called in at anytime due to the covenants being breached; the unsecured lenders need to keep rolling the loans but NO assurances have been given; MACA is supposedly under-performing, but is also owed a lot of money, BDR needs to maintain some goodwill with them so how does this evolve.....and finally I do not believe a word the company releases.
You could buy some shares in the SPP and the very next day the bank can call the loan in.....Game over.......Massive risk, little possible reward.
BDR Price at posting:
7.3¢ Sentiment: None Disclosure: Not Held
