Ann: Quarterly Investor Update, page-4

This still isn't where it should be and they're selectively cherrypicking numbers to make things look better. It's not that bad but it's not anywhere near as good as it could/should be either.

Firstly, the obvious one is the decrease in operating rigs and shifts. It's comparatively large in magnitude. This is disappointing considering the large recent investment made in underground rigs...now underutilised/idle.

Secondly, despite the raw increase in the EBITDA figure, it's still well below where it should be along with the EBITDA margin....it should be in the order or 20% which is where their competitors are. It should arguably be doing over $50 million in EBITDA annually considering the fleet size and again on comps with competitors. Nathan Mitchell has previously stated the business should be doing that now & also stated $60 million in annual EBITDA was attainable.....they're nowhere near it (yet anyway).

Thermal coal volumes are still doing exceptionally well, I'm wondering why they aren't looking at expanding the business into thermal (on top of metallurgical) when they were kicking tyres looking at the AJ Lucas drilling business as a growth option a few years ago.

Good news is they're still sufficiently cash generative to afford a full 2c dividend for the half (& continue the buyback) if they actually believe their own forecasts with respect to a stronger second half. I'd like the cash, preferably now.