Ann: Kanmantoo Construction and Commissioning Upd, page-21

re: Ann: Kanmantoo Construction and Commissio... Hey Storks, I am afraid thats not how I see it.

Cash of $55.3m compared with projected outflows of $43m for this quarter per the quarterly - add in $10m of overruns and it seems to me that HGO have run out of cash.

Sure, this is a massive balls-up but its not irreparable. Yes, worrying that only a few weeks back they released saying on time and on budget...

I assume the 18m project debt cant be drawn yet so it looks like they will need some kind of bridging finance - HGO would surely not have said so in their release otherwise?

Yes we could harp on about the dividends paid out and poor investments, but there is only one way to look now: forward. Overall, they have done well to get this mine built and DS has brought a new focus.

The good news is that first revenues should only a month or so away.

So, major balls-up - yes. But expect after the initial shockwaves, all will be fine by mid-December. No need to panic, I feel.

But HGO, please no more releases like this. Not now.