Ann: Corporate Update, page-312

Shane, as I previously said and still stand by, I believe it not being unrealistic for AJM to ship at least 50% or more of nameplate. AJM commenced production on 25th July and I am tipping the shipping to be in the week beginning 27th August with a possible cut of date for loading of 22nd August giving them 4 weeks of production. AJM's annual nameplate is 220,000 tonne or 18,300 tonne per month. My opinion is that they will ship between 8,000 tonne to 10,000 tonne with a grade at least 6%, price estimate IMO would be between US$900/950 for 6%, adjusted if it is over 6%. A sale of 9,000 tonne would give them at US$900 tonne US$8,100,000 converted to Aus$11.1M. Cash in hand at the end of June was $63M with a projected spend in September qtr of $33M leaving cash in hand of $30M plus my projected sale of $22M for August and September leaving $51M at the end of
September qtr.

Lionergy are nearing completion of their 120,000 tonne plant in September and although they to will have a ramp up period I would imagine they would want to stockpile some or on sell excess.