Ann: Change in substantial holding, page-18

Hi Chuk,

I value your research and thanks for posting on MML (and others). Your concerns here prompted me to re-look at matters prior to the Quarterly and I exited so I owe you a "thanks".

A couple of little comments:

(1) KCN putting Challenger on C&M; I agree that this does cost. However unlike an industrial business a mine operating at breakeven is bad for shareholders as the resource/ reserve is being depleted for no shareholder reward. In making these decisions management have to try and take into account how long POG will remain low, or alternatively be proactive like SAR and hedge when times are good.

(2) NST is bedding down their acquisitions well. Limited LOM is being addressed very quickly by recent additions. Management appear to have been familiar with the operations they bought and the likelihood of recent upgrades.

(3) You know I am in BSR. As we talked about though, I am concerned that Ebola will get to Senegal and then there will be business disruption and possible financing delays. I hear your argument about comparing to Malaria but you have to admit this is much different - just look at action plans now being implemented in Sengal's neighbours.

I realise this is a MML thread. Just saying all the miners look like shyte at present. Poor quarterly from the vast majority including BDR, OGC, RRL, TRY, RSG to name a few other than MML. I think you're right Chuk - look at developers with good grade and no legacy infrastructure. Good call.

Cheers
John