Ann: Quarterly Investor Update, page-21

Hi Danny

Sorry mate trusting people on Hot Copper is the last thing I am about to do.

I agree with your opinion about the big picture.

Does anyone have a view on the Deep Core acquisition?

It surprised me the earn out was on at EBITDA level.

Doesn’t this just encourage the sellers to run the equipment into the ground until the 3 years is up?

I have worked underground and seen some of this equipment after a month let alone a few years.

The fleet will be worthless – so what is MSV left with after 3 years.

I could understand the earnout on a Net Profit before Interest and tax basis but was perplexed that it was paid before depreciation was accounted for.

In saying this I like the story but just do not want to be missing anything