Bankruptcy negative Cashflow, page-35

Yes we now have three things happening in the June quarter that were a hindrance or not in operation the March quarter.

1: Winter ( colder and had more snow than average ) which in many ways is the equivalent of the wet season in Australia. This is the first winter since production started so a lot of knowledge gained.

2: The Dome is now in operation although that is more related to mitigating winter issues it helps continuity when doing maintenance on the crushers.

3: The re feed is now in operation.

The outcome of the above is all connected to consistent feed so can only help costs, the back end of the plant is already capable of above nameplate production and recoveries are already at or above expectations.

The new jaw crusher has also been given the go ahead, it was already on site but needed infrastructure built and was on the original hit list for cost cutting. It will probably be the last of Capex items and be more relevant in the Sept quarter IMO.

One of the biggest costs in the previous two quarters was the stockpile build up , thats an unavoidable upfront cost that goes with all start up operations and hopefully that's now behind us .

On the revenue front Spot prices averaged around $US200t up on the previous quarter.

So It's reasonable to expect a good reduction in production costs and the potential for that to supprise.

We will also be getting well through the underground part of the mine which required risk mitigation cost and into higher grade material with less issues.

All the above are positives but to what degree we will find out later in July and as always we need firmer Spodumene prices as cost cutting has limitations beyond what's already done. Plant utilisation % will be a key metric in the upcoming quarterly IMO its the driver for steady state nameplate production.

Cheers Whisky