Ann: Annual Report to Shareholders, page-7

KP2 plan is fairly well laid out in the announcement 22 May 2017.  

Capex of around us$25.3m compared to business as usual assumption of US$13.3 ... I expect will be financed from cash flow as hardly worth the bother of financing it.  Per the same announcement, "...Faster mining and processing of Ore Reserves over a 24-month shorter period eliminates approximately US$60 million in fixed costs, with a commensurate reduction in average operating cost per tonne produced, significantly enhancing project economics compared with the current mine plan...."

Re operating costs ... the last qrtly shows a fairly staid opex / t cost, regardless of volumes.  I think this is the direct consequence of management seeming laser focus on costs historically.  My sense is that they will continue to keep opex/t down by increasing volumes as well as hammering every cost element.

The success (including opportunity to crank back the debt ahead of schedule) is the revenue cost ratio which has improved to 3:1 and likely to improve further.  Forward pricing looks to be improving and the latest production forecast published has also improved.

Re debt ... my hunch is that as a continuing business,  in the absence of a debt restructure and assuming a material acquisition in the not too distant future, BSEt will become too under geared.

Can't see tooooo many risks ahead...

Have a great day.