re: Ann: First Sale to Noble Group and Furthe... 3500, the issue...

re: Ann: First Sale to Noble Group and Furthe... 3500, the issue isn't so much about them paying some of Tranche B ahead of schedule. It is about Tranche B not being there in 15months when we need it. If you are over budget today that will flow on and if anything blow out further.

As for the grades - who knows. They put Chowa pit on hold after trumpetting the 55% grades. They mention >55% and then >50% for the Mansa. The results say different. But a bit of blending and processing either manual or by machine will get it up. And the grades are decent whether you say ~48% or >55%.

It is a very simplistic view to think what is good for Noble is good for KAB. Noble are not shareholders. Noble earn interest on a loan and secure ore. At what price we really dont know. Originally BHP benchmark but now its purchased at site not CIF. They can change plans anytime they want as they did with the Tranche B. Or walking away from Chowa.

I can gaurantee consulting fees are on the rise. And we really dont know what the cost was for advancing the extra funds early. Certainly we know when OKAP extend loans it comes at a high cost. Same when Celtic do it. Are Noble somehow different?

It will take a few months to see how quickly they process the stockpile, how quickly they replenish the ore, the grades, and the revenues.

But they keep looking for more leases. Some would say that is prudent. And I agree. But it also raises concerns on what they have or dont have.

I'd say it will take around 3months to gauge the throughput of mine. And atleast a further 6months to see if Noble are a white knight or a vulture.