Ann: Siana Gold Project - approvals update, page-15

Besides the US$50 mil needed for the startup of Siana, at some stage in this process we are going to have to come up with somewhere between A$20-30 mil, maybe more, for the stage 6 tailings dam. With a forecast cash surplus of A$20 mil + in FY 2018/2019 serious work would unlikely start until FY 2019/2020 when a more robust cash surplus would be expected. IMO this is supported by management stating that a decision on Siana startup will depend on government future mining policy. At present the Philippines government has no mining policy to speak of, and won’t have any in the foreseeable future. As the next election looms, in the next two years, we may see some sort of mining policy materalise. I suggest, until then, Siana will probably remain on care and maintenance with only preliminary work taking place.
While on the subject of cash flows it is interesting that the cash status at the startup of the eastern goldfields venture at the beginning of Dec 2017 Q was A$11,998,000. Cash status at end of June 2018 Q was A$12,938,000. Not a bad result considering the frenzy of activity going on to get this venture up and running.