Ann: June 2014 Quarterly Report, page-23

I think its a credible quarter, which shows DML is heading in the right direction with respect to operational issues (process stability, metal recoveries). However, the comparison of the April monthly with the quarterly highlights the importance of grade - it averaged 1.11% in April for a $2.86/lb C1 cash cost, and 1.01% for the quarter for an average C1 of $3.17/lb. Suggests that the other two months in the quarter were lower grade & higher C1. Maybe DML high-graded in April..

The one disappointment for me in the quarterly is that there's no explicit comment in how the C1 is going to be driven down further in the next quarter or two. Are there further operational improvements in the pipeline to reduce costs, or is there any opportunity to increase the cut-off-grade (perhaps stockpiling lower grade material) to increase the grades to the plant, and reduce costs per lb that way. Where is the 1.5% Cu ore - does it exist or is the reconciliation with the resource model really poor - I know there was some mention of this in the past

In the medium term there is the UG development, but what's the approach going to be in the interim? We can't simply keep losing money. It'll be interesting to see an updated reserve statement for the project as well.