Ann: Quarterly Activities Report September 2015, page-6

MML on the improve is my view. Slow but steady.

Best element was the improvement in head grade passing through the mill from 6.01 to 6.8, which means they are getting close to their target and is in accordance with the recent posts here, the outcome was that while total mill throughput only increased by 5.5k tonnes over the last quarter, ounces produced increased by about 19% (about 5k ounces) to 31.5k ounces - an increase in revenue of around USD5.6m over what it would have been had production stayed the same as the previous quarter.

Note that the increase in production reduces ASIC, and that the gold price was about USD80/ounce than what had been received in much of the previous 12 months. The increase in production more than helped to offset the fall in revenue from a lower gold price.

Level of net cashflow is unclear to me. I am not sure what is meant by the USD8m used to reduce creditors/receivables - could mean that USD8m (or some portion of that) was used to pay down the level of accounts payables on the balance sheet, which is good. But will need to see the half year report to see what actually happened.

Management is taking note of the company's financial situation and has taken a bit of a hair cut, but only for one year.

The negative in the report is the declining ore reserves and resource - fixable over time by exploration?

loki (hoping for a positive market response to the report)