$17.5 mil business expansion jun-dec., page-7

The plant upgrade which increased ore throughput from 115 tons per hour
to 145 tons per hour ( a 26% improvement) has been virtually negated
by the drop in grade from 3.62 g/t to 2.85 g/t ( a drop of 24%.)

So at present, the millions invested in plant upgrade is simply maintaining production constant.

IE:
June :qtr......21582 ozs
Sept qtr:......22463 ozs
Dec qtr........22240 ozs.

This cannot be considered "rapid expansion" to justify the
drop in cash from $38 mil to $20.5 mil. for the Dec Qtr.

That's a drop of $17.5 mil cash at a time when gold has seen historic highs.

If this is considered "business expansion" then the above facts do not seem to
support that proposition.

The forecasted increase in cash outflows for the March qtr ( see Dec Qtr Report) with ore grade trending downwards indicate that things may get worse before they get better.

Cheers
Moorookamick
Sentiment:Hold