Nikec Your AISC prediction was 2-2.10.. mine btw. 2.15-2.25.....

Nikec

Your AISC prediction was 2-2.10.. mine btw. 2.15-2.25.. Well it was 2.23..

Your "big thing" question was if there is a recommencement of mining or purchase of ore... nothing is really answered in the quarterly report. There is just announced that there is a possibility of both.. well I don't think that this is really the answer we wanted to see.

So from my perspective, we have some good points in this quarterly but also some really bad points which are not really pointed out exactly..

the most good points:
- Mr Sampson (the actual troubleshooter/remover) is really do his best as we can see that on the quarterly report.. but the top mgmt is still bad in my view.. they did all the mistakes with their expansion design decisions and let the things happen without a controlling unit (catastropic work!!!)!
- expensive but a good point is also to name some more high profile fte's to assure fluent operations
- quarterly report is done fine with most information we need (but not all!)
- the most repairs are done well so far
- some new technics installed (very nice!)
- LOM plan/works and implementation of a cobalt production strategy (really good point but maybe a bit too late!)

the bad points:
- quarterly don't exactly say from what they will produce copper till the next 1-3 quarters (just the possibilites of buying 3rd material or mb recommence of mining.. slimes etc..)
- When they will recommence mining? When the cr is done or before?
- quarterly don't say if the whole design is now able to produce at nameplate (>32.5kt/yr)
- many repairs are named but not if the whole plant now is working fine togheter..
- they don't say if the real problem because of the "rainy season" is now fully removed.. and will working through that "horror" season.. (they didn't had any "rainy season" problems before that catastrophic costly expansion (debts!)!)
- 4.6kt/qtr (18.4kt/yr) or 10% increase vs last quarter production isn't a strong result and is miles away from 8.1kt/qtr (32.5kt/yr)..
- quarterly don't mention why the admin expenses are doubled (1st half 2017) instead of a reduction as they told us they will reduce them.. (well ofc they need help to do all the repairs.. but they should name such 100% higher costs on admin basis..!!)
- cashflow statements should be added to comprehend all the in- and outflows which are atm not very easy to fathom..
- how they will use the cr money... (after paying back 18.2mn.. how many to payback loans/interests and how many to use for more repairs, recommence of mining/lom/cobalt study/works etc..)
- etc.

But the most important point is how they will attract new investors (and us) to buy more shares from cr. They have to bring some strong results. And I mean "strong" results not "expectations" or (wrong) "forecasts".. They have to present more strong facts than some good repairs.. the whole plantdesign have to work perfectly and should show quarterly results of 8.1kt per quarter. Also the plantdesign need to bring strong results through the rainy season..

Well we will see what will come.. existing (small) investors could maybe bring in some 1-5mn not more.. the rest of the 45mn will come from new or our top5 investors.. and they want to see very strong results (low aisc, high production, low admin) instead of dreaming "expectations" to put more money in!

Turnaround is not done so far and still on the table.. but they could do it if they do their very best!