Ann: Quarterly Activities Report, page-7

I would agree with you assessment Samson except for one critical factor. That assessment was made when costs (ie. labour) were through the roof. We have watched as every other IO miner has massively slashed costs and have even heard of KML trumpeting the significant cost reduction measures and yet....drum roll please.....they are exactly as forecast in the previous extremely high cost environment. By operating at the original forecast after significant cost reductions measures, this implies that the mine was operating significantly above the forecast for a considerable time. It also implies that since they stopped mining, most of the cost reduction is actually down to volume of production rather than true cost cutting. I think their original forecasts on the ore, processing costs and numerous other items just plain missed the mark and it was/is reflected in the issues with commissioning and 'poorly' performing plant and costs. Just my musings but I get a weird twitch in my spine when I see someone thinking they got it right.