Ann: June Quarterly Activities & Cashflow Report , page-6

re: Ann: June Quarterly Activities & Cashflow... The drilling program will have no effect on the operation's profit margin.

The seawall will improve the margin drastically in two ways :

Firstly, it will enable PLV to access high grade dso, without the need to blend ore which is one of the reasons our costs are on the high side

Secondly, it will ensure that we have easy access to the dso so that 3 ships/month becomes the norm which is important given the high fixed costs on an island

Combined this should drop costs from $68 to sub $55, a 20% improvement.

I must say I was a little annoyed to see the missed ship in June, thought it was confirmed that 3 ships departed. I suppose the costs were included for mining that 3rd ship but revenue will have fallen into July which makes the numbers released a little better.