Ann: Quarterly Activities Report, page-43

Hi westcott,

C1 costs are reported to inform investors and the market about pure mining efficencies. C1 costs are not supposed to be used to evaluate overall profitability of a business.

If all you want to talk about is overall profitability, that's fine, simply ignore C1 cost reporting as it is not relevant to you. It is, however, a valid measure.

For many years you were very happy to quote SDL's OPEX 0f $22 without stating that this figure did not include shipping costs, debt repayments etc.

It is up to the investor to know the difference between the different measures, and what those measures are used for. Just because you don't want to use C1 costs / OPEX anymore, does not mean the measure is invalid.

Cheers!

PS. It's going to be interesting to see what happens to the Hanlong shares, hopefully news this quarter. If SDL doesn't want to deal with the dilution / survival question of another working capital injection, it needs to move quickly to secure strategic partners and debt funding.