All as expected. 1) As predicted by ALK in the LAST quarterly,...

All as expected.

1) As predicted by ALK in the LAST quarterly, gold profits are way down for this quarter due to overburden removal etc. They were well up (above average) for last quarter. Which means the average profit from the gold mine remains at the predicted 20-25 mio / year, easily enough to fund overhead, some more drilling and the preparation of the DZP.

2) Will it fund the >1 billion DZP? Of course not, even though by my calculation about 100 mio of the capex should be covered by it when all is said and done (by now, >60 mio of the capex has already been paid, esp the FEED; add 40 m for CYs 16+17 and there you are)

3) Alk has always been using extremely conservative numbers for its gold projects. If you got to the last reserve announcement and re-read it you will find hidden in the small print one glaring example:

The reserve assessment is conservative in that all inferred resource material included in stope designs was set to zero grade prior to undertaking the financial assessment. Accordingly, as part of the options study,
an underground design was also completed using the entire mining inventory (measured, indicated and
inferred resource categories). This design economically extracts an additional 47.7Koz of gold from similar development. Although this additional material cannot be included in a reserve, it should be noted that
the current open pit operations have been converting around 100% of inferred resource ounces to mined
reserves in the Caloma open pit and some 41% additional ounces were mined from the Wyoming Three​

open pit compared to the resource block model.

p 3 of http://www.alkane.com.au/images/pdf/asx/2015/20151210.pdf


4) NSW gov sitting on its asses.

5) Downramping by the usual suspect without effect on the SP.