Ann: Quarterly Activities Report - June 2013 , page-3

Leapzig:

largely agreed. A few remarks:

GOLD:

The sale of 3 mio RRL shares at these levels seems overly conservative to me - I'd keep them anyways, but at least I'd have waited till we get the dividend ...

TGP: "estimates indicate total C3 cash costs at approximately A$1,000 per ounce produced." At current prices, that means A$ 460 / ounce profit. That's solid - but I still would like some hedging if POG goes up.

Looking forward to october - I think we'll get at least to 12 years life of mine for Tomingley with Caloma 2. With further regional targets, who knows? 15? 20?

I also like the fact that we are continuing to explore - at low intensity - our other gold projects.


DZP:
REE prices look really horrible - luckily they went up again since end of June. With US economy looking up and Euro unemployment down for the first time in years, I'm pretty hopefull (well, except for LREEs - those numbers make me feel good not being invested in Lynas or Molycorp...)
Add improved HREE recovery plus the fact that we'll get individual REEs instead of a concentrate and we should easlily earn the DSF numbers.

I'd like to have seen some more info on the Treibacher deal, financing wise.

And tantalum (my pet complaint.)


CR:
We won't see any CR in the near future. Cf p. 5 :
"While Alkane currently has the financial resources to fully fund the TGP development, management continues to review alternative project finance options which would yield favourable terms to progress the Company’s overall development program."

In other words, we don't need to do a CR for Tomingley, but we are still looking on the possibilities for a partial forward sale or a secured loan, depending on the POG.

The only resaon for a CR would be DZP construction. That decision will only comne once we
- have the permits
- have final take off deals with the strategic partners
- have decided whether to sell part of the DZP to those partners.

TGP will be ready to roll by then, too.

So any CR - if any - will take place at way higher levels.