Ann: Quarterly Activities Report, page-3

A poor operating outcome last quarter papered over by very high $A nickel prices resulting in positive cash flow. The operating numbers were actually shite with them basically going backwards or at best sideways when they are supposed to be ramping up. April concentrator availability was close to 50% but in the end they didn't have the ore to process by quarter end. Victor needs to put in a very strong quarter operating performance to support his statements about how well the team is doing. I will judge him on how the mine ramps up, increase in head grade and metal recovery and consistent concentrator performance. If he doesn't put in a strong one to capture expected increase in $A nickel prices he will have lost a great opportunity. LME inventories are tanking so at some stage the market will realise there ain't enough nickel to satisfy demand on the back of a resurgent China and still powering US economy. This is when Victor needs to stand up and make sure we are firing on all cyclinders so we capture max $$$ to reduce debt and be well placed for either returning cash to shareholders or M+A opportunities. By the way the BoD has been silent from memory on what happens to the free cash. They need to start to articulate this to shareholders.