Ann: Termination of Mining Services Contract with MACA Limited, page-16

Afternoon Guys,

Well ... the cockroaches are starting to be found. I don't think it is a simple good/ bad or right/ wrong scenario.

When this deal was signed back in 2015, BDR were in the crap and the mining services sector was likewise short of work. MACA offered a cash injection to BDR via purchasing the mining fleet in return for a mining services contract.

BDR desperately needed the cash back then and MACA desperately needed work as iron ore was kaput.

Likewise, I don't think that you can conclude that MACA are awful operators in Brazil and the new guys will be a huge improvement. MACA are also working with AVB. Have they been blamed for mining catastrophes at that operation?

I doubt that this separation has been amicable at all. BDR are implying it is all MACA's fault. I doubt that is true. Likewise, I doubt that MACA has adapted to a new country/ operating climate flawlessly either.

Outcome is that BDR are disastrously in the crap. Are rolling the dice yet again but now have to accept much more commercial terms on the outstanding amount - 6.5% or something close, so added fixed interest costs of c. $4m p.a.

Geez ... I hope that mill works perfectly after the upgrade and the new contractor mines flawlessly, and the price of gold doesn't plunge, and the BRL doesn't implode, and the Brazilian economy doesn't collapse, and there are no environmental issues, and that Sprott finalise the debt deal, and that management gets their act together ... and ... and.

Cheers
john