A big issue with Granville at the moment is the price of tin,...

A big issue with Granville at the moment is the price of tin, which is struggling around USD16,200 (AUD24,000). No one could have predicted the Tin price would have dropped so low thanks to the Japan-South Korea and U.S-China trade wars as all the signs were exremely positive for tin just 6 months ago. With a mine running smoothly and continuously (renison for example) they will still be cash flow positive at current prices thanks to the weak AUD but at Granville which is still optimising the plant it really tightens the margins, leaving no margin for error particularly when they have no room for error thanks to a bank account getting too close to zero for comfort. The medium to long term is still looking extremely bright for tin so I'm not panicking on that front just yet, but the short term is tricky.

Sure if ANW had $10M in the bank they'd probably continue as they were as cash burn wouldn't be such an issue. They could temporarily replace the broken down equipment with hire equipment but they don't have that luxury, as they had assumed cash would be flowing from Granville by now. Instead DGR are having to come to the rescue (a great sign they want ANW to succeed and are confident they will.. although I'm not sure where their 1M is coming from just yet). If the tin price was hovering around AUD30,000 and there wasn't such uncertainty around the trade wars thwn funding would be much easier to come by. The timing is extremely unlucky but you have to roll with the punches.

What we do know is that before the mechanical issues they had access to the highest grade ore sampled to date and pre‐concentrate production at the plant had been on an improving trendline which are two big positives, showing the Granvile project still has plenty of upside. I am very interested to see what comes of the review, they need a clear cut, realistic plan and they need to execute it.