I have also been buying a few more at these prices as I can see plenty of upside if the company starts doing things right in Vietnam whilst progressing the Bau project.
Fortunately in a recent interview with Minesite they made the comment that the plant has been producing at 1000tpd even though it is only designed for 500tpd (lets hope this doesn't lead to a failure) and that November was a fantastic month. They reiterated guidance of 60-65,000 oz for the current fiscal year, and 75,000 for next year.
This all means that the next quarterly should be a marked improvement on the September quarter and they will be expecting to maintain increased production for the remainder of the year and beyond. This should see cash costs reduce significantly and I have the company trading on about 1 times FY2014 cashflow at these prices - very attractive.
My only real worry (other than a production problem) is the debt issue. This company has issued too much expensive convertible notes/ gold loan notes in the past and they need to start putting any increased cash generation to good use and clear the debt / hedge as soon as they can.
This would set the company up with huge blue-sky potential as they move towards production at Bau.
BEZ Price at posting:
17.0¢ Sentiment: LT Buy Disclosure: Held
