Ann: Quarterly Activities Report - March 2015, page-20

Mainholm -


You mentioned that

''BB and the COO both expressed the opinion that the Hermes acquisition from ALY will commence feeding the Plutonic plant in about 12 months time and should help improve the profit margin as well."

To me that sounds like cross-subsidisation - one part of the business propping up another. There is also mention of the non-cash amount of $99 for mine rehabilitation. It is a cost regardless and even if it is excluded then AISC is still way above where it needs to be. In my mind there needs to be a major cost improvement at Plutonic and not just papering things over by processing feed from Hermes (and that is stated to be 12 months away anyway). So is Plutonic going to continue to chew through $5-6 Million cash each quarter or is this new "mine plan" for Plutonic going to fix things before the feed from Hermes commences? NST needs to get runs on the board with Plutonic BEFORE the commencement of any feed from Hermes.

DYOR