Hi All,Overall a pretty solid quarterly in my opinion, albeit...

Hi All,

Overall a pretty solid quarterly in my opinion, albeit nothing new really in the report that we don't already know. I am more interested in their conference call this afternoon, from which I have taken interest in the below:

- Material shipped - interesting their reported this based on a ship at port being half loaded, assume this would be just to save face a bit so that they report the shipped qty is within guidance
- Forecast shipment for June qtr seems realistic at this point
- Pricing mechanisms - previously was an average based on the previous 6 months, from the sounds of it they will be setting a base price for their contracts of sale, which will then be adjusted based on spot prices at the time of shipping (and either a +/- after it is shipped). Generally think this is a good move for PLS as they get the best of both worlds, I wonder what the catch is...
- Costs of production increased - shipping increased from @25/t to $47/t, now has retracted to approx. $35-40/t as of today. AUD stronger hasn't helped. No big concerns here, but obviously if the AUD remains strong it will be hard to get to <$350/t cost of production. Plant has been running full tilt all of February and March, so I suspect that once these upgrades are complete, we will be seeing the true optimised cost of production around the middle of the year
- Altura plant opening still seems a while away. A lot of work is being done in the back ground, but wouldn't say the re-opening is imminent.
- Stage 2 of plant 1 is going to happen as well, just a matter of when.
- POSCO JV - the tone of Ken's voice suggested that again this is still a long way off. His tone in my opinion didn't suggest that we were close to a deal, rather it sounded like what POSCO has presented them initially for their plant/JV plans is quite a bit different to what PLS had in mind. Again this is just speculating, but listening to Ken it sounded like there was still plenty of work to do with POSCO

Apologies for the brain dump, but just wanted to highlight the key points I took out of their conference call. Overall super positive report though and the team seems very happy with progress. Lots of irons in the fire at the moment and look forward to updates on:

- Pricing for June qtr
- POSCO update
- Plant 1 upgrades completion
- Plant 2 opening
- Plant 1 - Stage 2 expansion plans
- Resource upgrades - also following drilling the sterilised zone between PLS and AJM

Onwards and upwards!

Pap