Ann: FY24 Production and Cash Update, page-10

This was a great announcement. Beating the upper guidance for gold was fantastic given the great gold price., Copper being in the mid range of guidance meant that was our best quarter for FY 2024 as was the plan at the mine and mill at Peak. This coincided with a lift in copper prices. The company delivered. FY we've spent $65-70 million capex at Federation and we've done it while maintaining our cash position and we still have around $36million AUD undrawn loan facility to give us access to over $150 million cash. So the market hasn't responded. Well Dragues will end shortly so we will probably generate around $6 - 7 million less this quarter. Income then depends solely on Peak so we need that mill to keep ticking along with no hiccups. I guess there is some risk with only one operational mill versus two so perhaps the market is being cautious. Federation development will hopefully start production mid next quarter, and as I posted recently, mining the rich interval near surface (21m @ 31.7 g/t Au and 37% Pb/Zn} will see us printing money. That and continued exploration results will provide a leg up to 30c in my opinion.
Given that Federation and Peak will no longer have LOM issues since both will be producing well into the 2030s, it's my view we will pass 30c by end FY 2025 since both mines will contribute significantly to our bottom line.
The bigger medium/longer term issue hinges on what we develop next especially around the mill at Hera. This is relevant to how Federation ore will be treated and whether Nymagee will be developed to production. So while Federation and Peak should move us soundly into the 30s, a 50c+ price will come once the company lets investors know of the future development at Hera/Fe/Nymagee, and shows it can complete this development from operating and available cash. I await the announcements on these. I'm a lot more bullish now because the new Board and Management have been delivering (since Nov 2022), and are forward thinking, with the skills to map out a plan for the future, and see it through to implementation.