Ann: Quarterly Activities Report, page-24

https://hotcopper.com.au/threads/q2-2020.5510105/page-3?post_id=45983594

"Quarter-end cash balance of $86.3M (31 March 2020: $108.2M), after paying $13.5M on Nordic Bond principal and interest payments, $3.6M in inventory build-up, ... during the Quarter."

Its not $A90m but adjusted for the inventory build, it is! That's a great effort by management. It also underlines the break even nature of sales vs production ... and that's despite production costs still having considerable scope to fall ... once full production is achieved.

Sales guidance almost doubled.

The new finance facility will save us upwards of $A10m pa and greatly alleviate cashflow.

This quarterly has exceeded my expectations. I'm surprised the share price isn't in the 50s ... yet.

Well done PLS team.



Production costs of USD450dmt is questionable, however:
"The quarters cash operating cost is elevated as it includes costs which were incurred during those periods when the plant remained idle under the moderated production strategy.
Importantly, for the month of June when plant utilisation was approximately 65%, the monthly cash operating cost per tonne sold was approximately US$350/dmt CIF China (or ≈US$295/wet metric tonne FOB Port Hedland, ex-royalties) and is indicative of the very low cost outcomes that can be achieved at Pilgangoora operations with higher plant utilisation."

Still, mining for June was tapping a 1.46% grade stream.

We'll get there ... and this is just for Stage1. Production costs will reduce further with project scaling.