Brazil's Duckhead to send debt packing
It's the Duckhead in Brazil that Peter Bowler reckons is world class and key to Beadell Resources rapidly repaying its $US100 million debt.
In one of the most entertaining presentations at Diggers & Dealers, the Beadell managing director was yesterday referring to the Duckhead pit, which has a 678,000 tonne resource grading 7.5 grams per tonne of gold to make it one of the company's Tucano project's best assets.
"I have been accused in the past of being a person of very big statements but I think we can say we are operating the best gold pit in the world," Mr Bowler said.
He cited Duckhead's high grade, a low corporate tax rate of just 15.75 per cent, access to cheap hydro power and 60 per cent of next year's gold production hedged at $US1600 an ounce as reasons he was confident about Beadell's future, despite a weak market environment.
And he forecast the company would be Brazil's leading gold producer based on cost, mine life and safety standards.
The gold price last night was $US1281.95/oz.
Mr Bowler's upbeat presentation, which drew laughter from the audience, came at the end of a three-day conference punctuated by a mood more upbeat than most of the 2000 delegates had expected.
Mr Bowler acknowledged that share prices across the sector were down, but said it was important to get mines into production as quickly as possible.
Although, Mr Bowler added to another round of laughter, "if you put out there anything that shows you have a viable gold project, your share price will go down", in reference to investors' preference for cash returns over investment.
