From the annual report "Critical judgements" section, I've added...

From the annual report "Critical judgements" section, I've added some notes in italics:

Critical judgements

Going concern

The directors consider the going concern basis of preparation to be appropriate based on forecast cash flows. The cash flow forecast also depends on successful sulphide and oxide mining operations, processing activities and the completion of capital projects in accordance with management’s schedule and cost, and achieving forecast gold price and foreign exchange assumptions.....

The forecasts include the timely and successful commissioning of the plant upgrade by July 2018 to allow for the processing of increased sulphide ore as planned.
.....(Contractor terminated.....they don't get terminated for being on time and budget ).

Critical to achieving forecast cash flows is the Group’s ability to achieve forecast gold production. The Group has a reasonable expectation that such production forecasts will be achieved through a combination of improved recoveries following the plant upgrade and accessing higher grade ore reserves.....
......(Lots of uncertainty here....when will the plant upgrade be completed...is it even possible to make a new forecast with the contractor changes)

...On the basis the Sprott Credit facility is completed as expected, the cash flow forecast also depends on the successful rolling of unsecured bank facilities of $23.0 million....
......(Sprott facility gone........ can the support of the unsecured creditors really be relied upon?.....after all everything is under control.. )

and continued support from our mining services contractor regarding repayment of the unsecured $9.7 million loan payable and some or all of aged past invoices of $28.2 million, to enable cash flow forecasts to be achieved......
.....(Contract terminated!!!!!!. On-going costs MAY(?) decline but no mention of cost of production delays and real termination costs, whether BDR had to buy all the equipment back, or what had to be agreed in order to get the Brazil contract signed...BDR have massive debts and are not in a strong position.....delays all over this)

.......The unsecured bank facilities have a successful history of being rolled and the Directors expect this to continue.......
......(not a great business strategy....hoping that things continue hasn't worked out too well for them)

.......Should operations not successfully achieve operating and capital forecasts, including the continued support from the unsecured lenders and the mining contractor in respect of past invoices, the Group will require additional funding in the form of debt or equity or a combination of the two. Negotiation for additional equity and debt funding will be progressed as required and the Directors have a reasonable expectation that such additional funding can be secured.
.......(Well, new funding has been sourced but from an ever deteriorating financial position......can they even tell us with conviction that the company remains a going concern........Can't see how it can be myself)



What a complete fiasco....The directors need to address the going concern issue....With all the uncertainty I would be gob-smacked if it's even possible to put forward an achievable production forecast.......but that's no different to the past 3 years is it,.......just that now the money's run out........Is Lundin on speed dial?