Ann: Operations and Guidance Update, page-54

The corrected version.

Zebster,

The difference in words may relate to the penalties for off spec product, which may deter MCR from delivering it, even if BHP were to accept it?

The absence of information about the potential severity of the problem is concerning.

Maybe it’s a temporary issue, temporarily requiring stockpiling - Insignificant NPV impact
Maybe it’s a long term issue requiring substantial LT stockpiling - Very minor NPV impact

But if Cassini has major arsenic issues, and if they can’t fully be resolved by blending then perhaps this could result in substantial reduction in reserves and major NPV impact. [Sorry TB but a new mill likely wouldn’t solve the problem].

If it’s a major problem then I doubt it’s in the northern operations, because it doesn’t appear to have been a major problem at Durkin or Long in the past, has it?

Whatever, management owe us, the owners, a much more detailed explanation of the extent of the problem. Major stuff ups have obviously occurred on DS’s watch. Hedging, financing top ups and now mine planning (perhaps poor understanding of an ore body or scant assaying?). Is there anything else they are not telling us about??

EL