financially healthy no need for cap raising, page-9

Hi MickyDuncan,

I agree, let's get to 40k pa and take it step by step. I want to see sustained increases in quarterly production. We're all expecting a big increase in Q308.

Here are the figures for exploration vs. admin costs:

2005: admin = $2.0m; exploration = $0.5m
2006: admin = $2.3m; exploration = $0.9m
2007: admin = $4.2m; exploration = $2.5m
Q108: admin = $0.5m; exploration = $0.9m

Good to see Q108 exploration the same as that for all 2006. Assuming admin costs can be kept under control, higher production will accelerate exploration growth to deliver 2m oz reserve by end of 09 hopefully. But again, let's see 1m oz reserve first in 2008, small steps.

Operating on a shoe-string budget is frustrating but I reckon this company will deliver as production revenue is going up. Progress isn't hostage to the banks or equity markets thankfully.

Rowingboat