While many of us have been focused on the Federation financing...

While many of us have been focused on the Federation financing as providing a potential increase in S P, let's not lose sight of the fact a substantial improvement in operating performance is also required. To highlight this, here are two key details on this from the H1 report.

• Net loss of $20.3 million V H2 2022 NPAT $12.1 million
• Net mine cashflow $0.9 million V H2 2022 $91.8 million

Clearly unless we perform better with regard operations, any amount of finance is not going to alleviate our problems unless operations improve. You really have to wonder how after netting $91.8 million from mining operations in H2 2022, 6 months later we managed to only net just under $1 million. While some of this was undoubtedly due to lower production, the bigger issue was cost containment. With 2 weeks to go till the end of Q3, and then a further wait until the results are released to the market, we might find any share price appreciation is stifled until Q3 figures are known. I say this because it's a long wait until Federation produces an income stream, and we can't afford to keep going backwards in the interim. Clearly, Q3 has to be better than both Q1 & 2. It makes me wonder about being involved in any SPP should that be a part of the funds we raise.