Why the sp struggle following pos announcements?, page-141

Yes, saw the increase in Fekola resources. Interestingly this was kind of a 'sell-the-news' event for the B2 share price which was down 7%. Although it was not down significantly more than the entire US/CDN gold sector which tanked last night due to weak results from major gold producers.

The weak results of major producers again shows the quality of what WAF has. These major companies are producing no profits at these gold prices. Their high margin ounces are being depleted and they have no projects in the pipeline of equivalent quality. No one is finding ounces with AISC < US$700/oz.

My take is that the expansion of Fekola does not need to be the only thing on the mind of B2. They said that they only need to upgrade the ball mill circuit to increase plant throughput as the other equipment was already over sized. I think they alluded to cost of the expansion somewhere previously and it might only be ~US$50M. They are churning out enough free cash to fund this easily and look at growth projects.

I make the point again that B2 want projects they can develop and customise themselves. That is their skillset. WAF increasing the design throughput of the plant may make it more attractive to B2 if they want to put Toega ore through there at some point in the future. I don't have a good understanding of the variability of ore types between Toega and Sanbrado and whether they cold be processed easily together and how this would affect processing plant design.

No comments from me on the new lode discovery. Early days yet. I'm more interested about the 1000m hole WAF want to drill down the primary M1 south load. Extending the drill depth by 200-300m would be another 2-3 years of underground production and surely a game-changer.