Ann: Quarterly Activities Report, page-9

Yes, cash flow positive requires them improving the metallurgical recovery. Hopefully improvements in recovery don’t require additional grind time, more grinding media or more reactives.

42.5% is the recovery based on them achieving between 40% and 45%. A couple of one offs at 49% I disregard.

So 42.5% recovery of 2.95% grade times $US2,500 per ton times 85% smelter payable = $26.64. That figure is not arguable.

The smelter charges  $150 per concentrate ton so if the ratio is 20:1 that’s $7.50 an ore ton. That leaves $19.14.

No one is buying FOB Australia so they need to pay ocean freight. That makes it a loss right there before you’ve considered cost to mine, corporate overheads, interest on debt, actual processing costs.

You can not process a ton through a flotation circuit for 
under $US10. No one does. 

At these recoveries there’s simply not enough in it.