Ann: RIU Sydney Resources Round-Up, page-9

Cheers Calm.
Nic spoke well considering the situation he finds himself in (i.e. high spend period, disappointing quarterly and share price under performing compared to it's peers). Good to continue to hear that he (the team) believe they can still hit the low end of guidance, though still only been a very short period of time since they got the final permit to mine Roswell U/G.

Hard to read anything into his views on the exploration results they have seen to date (positive or negative), other than it will guide them on where to spend the next round of exploration $$ (which is logical).

Still very cagey about Tommi in regards to production over the near term, other than clearly saying Roswell can support 70-80k p.a until complimented by open pit ounces. The 5 year mine plan update is still coming, as is the scoping study for Boda/Kai (approx 4 weeks from now).

While I of course don't like the hedging, it's done and ensures the company will not need to tap the markets.
As I read it, they will have around $80m in liquidity which, I think will get down to around $60m later this year, as the past plant and plant recovery upgrades are finished off (Nic hinted that cash draw downs will likely stop by years endish...). As the put options cost $7.7m (they had approx $90m in liquidity before this occurred).


I would still like to see them offload their CAI shares (even at a much lower price than today, though... I do think on balance CAI will survive and perhaps there will be a better timed opportunity to finally get rid of them). As while uncountably the GMD investment paid off, getting Tommi to 100k p.a should be the main goal while growing Boda, as the reward is clear to see.