Pretty scary stuff. 1. Haile not performing due to COVID etc -...

Pretty scary stuff.

1. Haile not performing due to COVID etc - AISC last quarter USD1781/0unce versus sale price of USD1722 so basically making a loss, in part due to hedging at lower than spot prices I suppose. Operations made a loss, even after accounting for large write down (there will be more writedowns I suspect).

2. Waihi will continue to eat up money for capex;

3. Costs pretty high at Macraes but at least its profitable;

4. Some savings by sacking people at Dipidio is a positive for shareholders (but not workers) due to mine closure;

5. Real net debt of USD187m understated in this news release by the market value of the remaining 76k ounces of gold prepay - recorded as "unearned revenue" of USD135.6m footnote 12 of the accounts - so real net debt was USD322.8m at end September, but no interest is payable on the gold prepay.

6. Fortunately they had the sense to raise cash of net USD122.4m via a CR post September so now net debt is probably around USD200m.

I think they will continue to struggle for the rest of this year given COVID issues, and Haile is unlikely to meet its lower target IMO given past performance.

GLA.

loki