Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-70

So my reading of the tea leaves:

• Mid May KCN had produced 2kozs of gold per update announcements.
• End of Qtr they had produced 10kozs but sold 8.5k ozs
• So in last 6 weeks of Qtr produced at minimum of 1koz per week.
• Plant is working above name plate capacity so believe at steady-state production
• Not expecting grade to decline, may improve but only marginally.
• At 1koz+ per week that's 12-13koz of gold plus silver
• If current Qtr is forecast to be cashflow +ve and we are at steady state the operation is CASHFLOW POSITIVE NOW
• Expect revenue/receipts for Qtr therefore to be $36M+
• Production costs as stated expected to decline this Qtr as plant2 ramp-up ends.
• Mining fleet mobilised in last Qtr so there were costs associated but no benefit from ore production
• May be extra mining fleet costs next Qtr as ramp-up continues but will be off-set by declining costs elsewhere.
• So even If production costs increase $6M from June Qtr level, operation should still produce $10M+ cashflow from operations.
• Financing should now be easier if the operation is cashflow positive with 2.5 years of stockpiles and mining fleet mobilised.