Ann: Wet Commissioning Advances as Ore Feeds Through Concentrator, page-103

Defeats the whole purpose of being debt funded…Sparecash7 has simply pointed out there are plenty of funds for working capital available and the project is heading towards revenue while ramping up…As a base case they need enough funds to service debt and running costs for a period of 36 months of payments and another 5 months to build on treasury funds from sales…There is already considerable funds for working capital…

Opex cost is minimal and even if it this was to double would still give a free cash margin per product ton of over US$900 per ton…

You mention OPEX cost are going to ramp up hard yet don’t offer what those cost maybe…It would have been easier if you had provided calculations rather that beliefs that people can not analyse…

The biggest consideration to rising cost is grade control…Not OPEX

The plant CAPEX cost is locked into a debt service payment while OPEX of processing plant is a Fixed price contract per ton unit…

You can double the strip ratio triple the strip ratio and still remain very economical and have cost advantage over other projects due to the real costs which are materialised in the processing…Once again grade control is the most price sensitive calculation over all other factors…A higher grade resource can sustain a higher strip ratio while higher grades also reduce product ton costs while the CAPEX remains the same…

To be continued…

Regards Croc