quarterly report out, page-18

Hi PE

Operating expenses were up to additional mining during the quarter - 1.656 BCM - up 23% on last quarter - this will have an effect on cashflow as they need to pay the contractor to move it , despite the ore not yielding copper for some months ( by the time it is stacked & leached & plated , sold & shipped ) . Extra ore is needed to ensure the expanded plant has something to process. On a profit & loss basis expenses would a lot less.

I think the refinance will be done OK - Macquarie hold all Lady Annie debt & would most likely look at rolling facility into one. I think they also have done all the hedging as well as they have a far better picture of the group than anyone else. Additionally I recall seeing that one of the conditions of the takeover was consent by CUO's lender - if this was OK , suggest they are looking at a total facility to cover CUO & minsec loans.

Would have liked a bit more commentry on the refinance - intend to go to the AGM so if I do , will ask - Brian Rear has always been pretty open at AGM's in the past.


Cheers


Baraka