Ann: Quarterly Activities Report and Appendix 4C, page-76

I'll repost something I posted recently in response to continued talk by a non holder of costs exploding last quarter and what that apparently means for costs going forward.

In this quarterly report, the company wrote;

"In accordance with ASX Listing Rule 5.3.5, payments to related parties of the Company and their associates during the Quarter totalled $235k. The Company advises that this relates to five months of Directors’ fees and corporate management fees of service providers related to Directors. During the Quarter, a number of Directors provided loans to the Company, which were also repaid in the same quarter."

Some directors agreed to hold off being paid in the previous quarter when cash was low and were repaid in the latest quarter. So the previous quarter was lower than it should have been and the December quarter was higher than what we can expect for the current and following quarters. This is reflected in the individual quarter reports. Looking at the details in those reports, my interpretation is as follows

The July quarter had staff and admin costs at 1.165mill and 840k for a total of $2.005mill.
The later Sept quarter was at 862k and 923k for a lower total of $1.788mill reflecting the deferred director fees.
The Dec quarter was 1.466 and 2.061 for a total of 3.667mill with the higher amount reflecting the payment of deferred fees as well as an increase in fees and costs.

Importantly;
The total for Sep and Dec was 5.455mill for the six months or an average of $2.727mill.
That's an increase over the $2.005mill for July but not the one off 70%-123% increase that was skewed by a drop in costs in Sept and then any deferred fees being added to December.

The combined Sept/Dec quarters staff admin and corporate average costs of $2.727mill per quarter works out to $10.91 mill per year, not the $14-20mill Merch would like you to believe.

There was a further $234mill for mine properties under development, property plant and equipment, which should be paid out of Angolan funds from now on, not from Perth funds.