commissioning/production has commenced

Today I placed a call to Matilda and spoke to 1 of 2 persons authorised to discuss Matilda with shareholders.

Question 1. Regarding the release to the market 9/2/12 advising of commissioning/extraction/production of Lethbridge Sth to commence mid February...am guessing there may have been some slight complications causing temporary delays and am anticipating you will reassure us that everything is under control and the wheels will soon be turning. What can you tell us?

Answer 1.No there haven't been any problems. We have been commissioning since mid February as planned and are currently running at approximately 65% capacity. Directors are visiting the site tomorrow to meet with operators and strategise tweaking and fine tuning equipment to bring it up to optimal performance, or full capacity. We plan to announce to market very soon once we can quote as running at full capacity. [ IMO +-1week ]

Question 2. In terms of the $40M pay load what conditions need to be meet to qualify for the payment, are there penalties that may be envoked if you under deliver (if so what are they) and how confident are you that you will deliver on time in full and be paid in full?

Answer 2. We will be issued with a bank credit note prior to the shipment leaving. It [Sand with approx 1/4 Zircon etc] will need to be approximately 24-26%. There is a 1% tolerance and our requirement is to meet a touch under 25% which we are currently obtaining in terms of concentration or purity. The only thing that may slightly alter the outcome in agreed measurements locally compared to upon receipt by the purchaser is moisture content [ because the shipment is dependent on weight of sand and minerals, increased water content absorbed from or evaporated into the atmosphere during transit would increase/decrease the overall weight but not the weight of the minerals contained therein ]. If there was a variance outside the 1% then they'll either pay us a little extra or we'll pay them a little extra. We are very confident that we will be within the 1% range and obtain payment in full as planned.

Q.So would you say you're confident everything is going on scheduled and as planned, that you will be paid in full with only a small chance of any...negligible variances in revenue?

A.Exactly


..... and still less than 2 cents for now

If you haven't already, I'd take a look , see what you can see


Cheers