browns update now out nc, page-11

Management have been proven to be incompetent with respect to negotiating a maximum contribution from HNC of half of the originally estimated $72M capital cost of the oxides plant , WITH NO OVER-RUN PROVISION. CMR will now have to shoulder the over-run of $103M themselves PLUS all finance costs. This is a terrible state of affairs and the DCF will be very much weakened by this added capex. As a holder I am quite angry at all this.

Given there will almost certainly be more bad news with commissioning, recovery etc woes with the cobbled together plant it is conceivable CMR will hit the rocks before achieving production. I didn't say it WILL I said it is CONCEIVABLE. Look at JML's sp over the last year if you want to see what can happen on commissioning & recovery shortfalls with a polymetal plant.