Ann: Quarterly Activities & Cashflow Report, page-40

I didnt mean it to sound like i thought they were using just the 50% feed to produce the 61%. The Ann continually talk about a blend, although we dont know any specifics.

I was just doing some research as to the cost of the 50% feed. More specifically, if it was worthless then I could understand IFO giving it away to NSL for free and perhaps letting them essentially on-sell it to other clients (potential competition of IFO?). But considering its value I am not convinced that NSL are receiving it for free.

Makes a rather large difference to their bottom line if so. And also if they are only getting $55/t ish for their 61% then the potential cost of the 50% feed plus the reduced sales amount could put them cash flow negative at nameplate capacity. Until the plant is fixed so it can use their own ROM, whenever that will be.

So if for example Minera have negotiated a more favorable sales price of $55/t, at nameplate that is $11m revenue pa for the 200ktpa when it gets up to that. Now we dont know what ratio they are blending the IFO feed with their own ROM or what price if any they are paying for it. But if they were getting it for free I was expecting that sort of positive information in the Q report.

Anyway at 1:1 blend - 100k of IFO feed @ $30/t that makes then cash flow neutral.

I know there are way too many assumptions of price in this calculation though but we dont have any to go off of.