update, page-7

Hi All

Administrator would have taken this to court to receive consent to delay 2nd creditors meeting - they need to hold 2nd meeting 21 days after the 1st , unless they recieve consent of the court. This is now done so can be deferred. Reciever only needs to provide a statement of receipts and payments every 6 months.

With recievers running the assets , the VA has no real power to do much at all - the reciever holds the whip hand here. The directors have even less authority !

What is clear is that there a lot of things to sort out - but given mine still operating at full capacity and seeking a sale indicates a viable operation. with appointing an investment bank suggests that their is quite a bit of interest in Lady Annie . What is it worth ? in this market who knows - however receiver does not need to sell in a hurry - their appointment generally has no fixed date - they can hold his asset and use the cash generated to pay down debt until it is cleared - there is no limit to how long they can be there ( Look at Cambridge Credit on delisted.com.au - recievers running it since 1974 ! )

When SRL sold Nifty they got $150m or so ( when copper was $1500 at Tonne ) and that had 80,000t of oxide reserves and a capacity of 27,000tpa . We have a copper price at double this ( op cost is higher - still a good margin ) , 200,000t of contained JORC oxide plus sulphide upside & capacity ramping up to 30,000 , plus a deep in the money hedge book . The recievers know that it is a very valuable operations and have the responsibility to preserve any equity for other creditors and shareholders - in a good market I would reckon in the region of $300 / $400m - but in the market we are dealing with today ? I don't know - worth noting that when SRL sold Nifty it was well before the mining boom was in full swing - credit availability will be the key.

Cheers

Baraka