The operational update will outline how they are going to deal...

The operational update will outline how they are going to deal with the waste sand issue that has been constraining the production rates. The company thinks it has a solution.

It will also talk about the product strategy and possible shipment schedules.

The reason for the trading halt is that the company is in discussion with its lenders (NAIF and the bondholders) and is negotiating a change in the repayment timetable to better align with the expected ramp-up and commissioning schedule. Debt repayments were never anticipated until the operation is in steady state and they are trying to realign that.

They have been advised that they should be in trading halt until that is concluded. They tell me that the discussions are progressing well. Strandline is very sensitive about the trading in the stock post receiving a warning ‘aware’ letter from the ASX earlier in the month.

The stock jumped higher last Thursday and Strandline was concerned that the market was beginning to trade on news about the strategic update ahead of a release – hence the trading halt.

I also think good news is coming around the Tanzanian assets – these could be sold before the end of the year, which would be taken very well by the market. I’m not sure if we’ll hear any news on that this week.

Bottom line – there is nothing new in today’s suspension – it is just a continuation in the trading halt. At this stage the company does not expect to need any further equity.