bean counters please explain, page-6

Hi Scorchin

I have been offline for a while but see you have posted some more thoughts

to debate your point a little; I would simply point out that it was a year of two halves. The annual report is of less value than the qrtrlys.

A more prudent way to look at BRL would be to compare the 2nd and third qrtrs for example.

Are you able to direct me to any posts that ridiculed you for pointing out the high transport costs, I cant find it.

To defend your position I would suggest that the high transport costs are locked in until the volume production from Escarpment is achieved and aerial conveying becomes the norm. This is openly stated by the company and reflected in their stated cost of $110 to $120 per tonne for pre Aerial Conveyor production from Escarpment, reducing to $80 per tonne on the conveyor is operational

In relation to you slating of the domestic business I would invite your comment on the below information lifted from the investor presentation from the 23rd August, Pg 7


Domestic operations


Coal sold direct to local industrial users

Revenue independent of Global coal prices and FX with majority of sales from long term contracts, providing certainty and positive cash flows.

Contract prices currently average NZ $110 - $120 per tonne with average production costa of $70 - $80 per tonne

Cheers Scorchin