Ann: Results for Half Year Ended 30 June 2017, page-4

The further delay is disappointing and we are obviously going to have some turbulence until the option process is finalised.

The basic investment thesis remains strong. 2000 tonnes a month @$8k per tonne is $16m a month. Add another $1m for the gold and silver. Expenses are about $9m a month (excluding depreciation) so they would be making $8m per month at 2000 tonnes

Working on they get $5m from the options and $8m per month from October then I think it could go something like

December Quarter ($29m = $5m + 3 x $8m)

1. Normalise trade creditors by bringing the balance down from $43m to $18m (about 60 days). Cost $25m
2. Pay out the employees delayed benefit $4m

March Quarter ($24m = 3 x $8m)
1. SA Gov $4m
2. Prom Note $4
3. Pull the trigger on the convertible notes. Realistically nobody will take the cash but they would need to have the $6m in the kitty before they could make the convert or redeem demand.
4. Leaves $16m in the kitty. No borrowings. No convertible notes. Trade creditors and provisions all normalised !

June Quarter ($40m = $24m + $16m from March)
1. Put $10m in bank for a rainy day
2. Pay out $30m to long suffering shareholders in dividends / capital return / buyback etc ($0.05) per share)

Each quarter after make $24m and give to shareholders ! ($0.04 per share)

I know it never quite goes to plan and it would be dependent on them executing properly and the copper price staying at $8k / tonne or above. Still a very compelling story if they can make it happen !

DYOR