emperors new clothes?, page-14

plough

We are all guessing.

Have a read of the address at the AGM yesterday - plant operational 61%.

From memory the recovery rate is below 90%, not sure where I saw the figure but I think it was around 84%.

The reserve grade is quite high for the open pit (3.4 gms/tonne) - see

http://www.asx.com.au/asxpdf/20120620/pdf/426y06bj1cmc1l.pdf

I think they are mining lower grade ore, but not sure of the grade.

I suspect they have failed to update the presentation and are showing stockpiles which have been used up!! Typical, unless they blend this stuff with higher grade material being mined. Note the grade of the stockpiles are very low - only 1.3 grams/tonne in the above presentation and lower in the latest presentation (1.2 gms/tonne).

We are also discounting production for the more than expected stuff ups by this mob, I suppose.

Let us know if you put your toe in the RED sea. I has been a wild ride so far.

loki