Ann: Quarterly Activities and Cashflow Report, page-47

Thanks. I am getting the gist of your points. I will just comment on your point below:

"However... the next 2 quarters are likely to be the heaviest in regards to stripping."
In normal circumstance, the payment could be 30-60 days cycle and therefore any stripping done this month for example will be paid towards the end of the Sept Qtr. In a sense payment is delayed and by Dec Qtr, the hedged gold will be reduced and therefore there will be some relief on the cashflow. The other point is that stripping is part and parcel of the ASIC cost and therefore the sale of the gold will recover this component of the cost.

The pre-stripping is the one that is attributable to the development cost and that amounts to $15mil and this is the component that needs to be managed. If my memory serve me right, the pre-stripping starts in April and therefore some of the cost associated with it would have been paid already and therefore the $57.3mil of cash already has some of this pre-stripping cost taken out.


I am no accountant and therefore I am prone to wrong assumptions!!

Cheers.