What we can’t control…What we can’t control is the spod price....

What we can’t control…

What we can’t control is the spod price. All producers are in the same boat here. It warrants a comparison as to how we compare to other producers

We can thank our lucky stars there is no debt…

The down turn in prices is not uncommon for commodities or unexpected. It’s cyclical. Like watching Iron ore companies during the last downturn - those with the highest costs halt production. Those with high debt can’t trade through the downturn and go under. We can thank our lucky stars there is no debt…

The truth is we are not halting production…

The risk in halting production is cash flow. How do we survive with no income. The truth is we are not halting production (at least not for the next 6 months). We are processing and supplying ROM stock. Stroke of luck they ran this up to avoid wet season delays.

…this move will look very astute - time will tell.

Our risk comes in 6 months if spod is still at this level. Thanks to the halt now on spending at that time we are likely to still have $200m in cash (possibly more). That will I hope buy us the time through the cycles low to be in the same position we are today financially when the up cycle begins. If that happens this move will look very astute - time will tell.

Disclosure - sold both my holdings at 0.29. Began the buyback today at 0.24 and continuing down to 0.16. Not because I believe that’s what the company is worth but because looking at short data that’s what I expect could happen.