Ann: Macquarie Bank Replaced as Financier of Las Lagunas Project, page-14

123 oz/d at $1,065/oz would give revenue of $11.92m less cash costs of $10.5m would leave cash flow of only $1.42m, not enough to meet the monthly repayments of $1.8m.

I was however hypothesizing using 50% recovery which is 138 oz/d (and $9.6m as cash cost). 138 oz/d at $1,065 /oz would give revenue of $13.37m less cash costs of $10.5m leaving $2.87m which would cover the monthly repayments and leave only $1m towards the balloon payment. I can see that in my excitement I have failed to include the 6 monthly repayments of 600k in my calc. If your figure for cash costs is correct I can see my statement was clearly not correct but I am sure we can both agree that the remaining debt 0f $7.38m (or less) at June 30 next year will be easily refinanced – undoubtedly the reason why Brian is showing confidence.

I have no wish to argue with you about cash cost because I know you keep track of it closer than I do but I interpret todays statement to mean PGI will no longer pay any royalties to Macb. Your cash cost seem high to me, perhaps you need to reduce your cash cost by these royalties.