Ann: Mining Contractors Mobilised to Accelerate Nugent, page-18

While we await the quarterly.

Re Filling the plant;

Bob has mentioned the SE tenements importance in getting the Kanmantoo plant operating at full capacity and that exploration in the SE will be focused on the parts closest to and within trucking distance of the Kanmantoo plant.

The big problem is that filling the plant is not a progressive possibility. I think Bob will get to processing 1.8 mt PA of 1 % grade very quickly by operating 8 days on and 6 days off with 2 crews. The next step is to refurbish the bits of the plant that haven't been used since it was acquired to increase the capacity above 3.6mt at 0.6% feed grade and operate around the clock with 4 crews.

Maybe that will involve an economically viable mixture of 1% with a cut off of 0.6% and some 0.5% from the halos cut off at 0.4%.

When Kanmantoo is running full then it will be time to think about adding smaller plants that are more suitable for an underground operation in the SE and the Northern tenements.

Re AIC and Earnings.

We need to keep in mind that AIC includes all the capital expenditure that is being incurred and those costs don't reduce Earnings which are Profits from operating the business at current capacity.

A company with great growth prospects that's earning $100m a year isn't going broke if it spends more than that on growing the business.

Tax.

Companies that pay regular dividends to distribute their franking credit balances to shareholders who can get cash back on them and fund their expansion with underwritten reinvestment plans can trade at higher PE ratios than those who use earnings to fund growth capex.

If the company choses to let the government kepp the franking credits and use all earnings to fund growth shareholders who need an income stream can sell shares and pay capital gains tax. Which is best is the burning questions that boards have to consider.