Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-42

Well my short lived optimism has gone up in smoke. Waterfall chart says it all without subjectivity. Same old quarterly story with royalty tax being a sting in the tail. Good to see debt profile as I have been harping on about this since joining. Looks to be market cap is much lower than total debt. Equity raise at 3c would be horrific. Over $100mil of current debt plus more royalties tax. My view was this should have been a decent quarterly cash, but probably went backwards if not stagnant IMHO. It seems all up hill from now unless debt can be eliminated. Bluff shut, BME shut, Ellensfield making a blend of lower grade coking coal plus lower grade thermal coal, logistics and more capex to continue (Plumtree soon?). How much money has gone into this producer and gone out the door….a dividend is light years away and only indicated in the next annual report.

In retrospect the recent weak price decline said it all. They need some serious plumbing to stop the leakage. The CFO has a job to do. This shouldn’t happen but least I waited out for quarterly report. Mining production looks reasonable but now only have Ellensfield to pay the bills. A game of wait and see. The price is tantalisingly low but probably for all the wrong reasons.