Ann: Response to ASX Price and Volume Query , page-57

mickqld

was going over past comments and noted your post and the questions you posed about the companies cash balance and how they will fund both the Montenegro purchase and the Peelwood start up.

Good points and ones that i have also been considering.

As i understand it the company has stated that it expects to be able to fund the Montenegro purchase (should it go ahead) from existing funds. It is not unusual for these type of agreements to include staggered payments based on milestones nor is it unusual for part of the consideration to be made in 'paper'. Ofcourse we will have to wait for any announcement for the details.
I have spoken to a couple of parties that are familiar with the company and its projects and am told if they can pull off the Montenegro deal it will be a game changer for SSC as it is a much bigger project than Peelwood and quite advanced.

As for the funding of Peelwood i understand that the preffered option is to seek an offtake arrangement in order to finance the commencement of mining. The start up costs are minimal as we are looking at shallow open pit. There is no need for SSC to purchase its own processing facility as the ore can be trucked to a nearby railhead and then treated at a plant in Bathurst.
With low capex/opex Peelwood will provide the revenue required to advance the Montenegro project should it go ahead.