Ann: Quarterly Activities Report, page-4

Tokyo, where do you get cash flow positive from? MGX are being very coy about their profitability. They claim all in cash costs of A$52/wmt FOB, yet report revenues of A$54 on 1.1Mwmt sales, ie, revenues of A$49.09/wmt. That excludes shipping costs (another US$8 - 10/t?).

The CEO talks about being cash flow positive at Extension Hill on the basis of a A$48/wmt all in cash cost. A realised fines price of US$40/dmt (say, A$55 on a 72c FOREX) as per the table included in the report, suggests they are losing money if you add in the A$11 to 14 shipping cost and normalise their wmt to dmt (assume, say, a 7% moisture content).

Have I misread?

On the positive side, they expect Acacia to be cash flow positive.