Hi Matt, It was said that Dragues would still be processing...

Hi Matt, It was said that Dragues would still be processing through August (see Noosa presentation) even though we stopped mining sometime ago and presumably have now finished transporting ore to the mill. I would also expect income to continue maybe till the end of the quarter as we collect funds on sales that could occur in August and maybe as late as September. The company has also said costs are winding down as staff numbers are reduced with Dragues winding down. All this point to some good income through the quarter and even then, the company has also indicated interest in buyers for some of the Dragues plant. In short Dragues could continue to provide healthy cashflow through this quarter at least

If we collect money through till the quarters end from Dragues, Federation will be up and running, albeit slowly at first, but it might allow extra revenue from Peak as we get to a higher throughput at the mill. Perhaps we won't be drawing on as much of our cash as people might suspect.

The other point is we are within the Federation budget which was originally set at $143 million. So far we have spent $64 million leaving $79 million to go. I'm not sure of the rate at which we will be spending this amount but last year it was about $15million/quarter. My guess is if this quarter keeps getting income from Dragues till quarters end, and Hera keeps operating as at the moment and Federation comes on near the end of the quarter, we might get through this quarter with the $116 million still in the bank. If so that would be a great achievement. Regardless, having spent most of last year developing Federation out of operating cashflow, you can see we are now in the position of knowing the funds needed to complete the Federation plan are well and truly covered with plenty to spare. Any drawing on funds might more be a matter of how quickly we move on the next project, Great Cobar.