Ann: Quarterly Activities Report - December 2023, page-2

I've had a quick look through the announcement. It reads totally differently to those of the recent past. To me it says this is what we have done, this is what we are planning to do. Here are the reasons. It has a positive focus on developing the company with the emphasis on successful financing, development (Federation remains on track), mining and milling, and an increase in exploration spending. Safety is part of the successful mining and milling and measures to mitigate accidents rates outlined. It's in its place which isn't the headlines because it is being dealt with professionally. There is mention of difficulties due to excess rainfall and some underperformance in drilling and blasting but these are not used as excuses as no excuses are needed. We mitigated the damage by mining other stopes and will get to the better stuff later this FY 2024. As a result, we will increase Pb and Zn in the second half as these are currently below the half way point of guidance for FY, which remains unchanged.
Spending (with $19 million on development) was met by operational cashflow so it looks like, with the tax return, and undrawn loan facility, compared with the forecast spending, we are well financed to deliver Federation into production. We have available $160 million and if things go to plan, we'll not need anywhere near that. Possibly only half. There's no reason in my view to sell at these prices. I'm changing my sentiment from hold to buy to reflect the change in management credibility.