cre underferforming as expected-prod falling, page-10

Gentlemen,

The point i was trying to make was concerning lost milling time and reducing milling capacity going forward.

Maybe the true reading of the OPA is this 2.4MT available capacity is "if not used by Granny Smiths own ore supply".
We have the details of the deal ,but not the actual wording of the agreement.With continually reducing milling volumes,acknowledging we already know the next runs going to be conveniently ANOTHER WEEK SHORTER AGAIN,one worries that, that is the case of Barrack ramping up their own supply.Barracks had idle plant compliments of CRE lack of competence in supplying ORE.Either the Barrack mill is stopping for lack of ore,or ELSE SOMETHING FUNDAMENTAL IS HAPPENING with Barrack.

The other issue is,if CRE has been supplying ore BELOW GRADE,then Barrack may also be saying,FRONT UP and any lower average grade is unacceptable.There is disposal costs on ore treated and nobody wants their tailings pit filled up by milling tons of roading.

The next 6 months here for CRE could get interesting.The $36M income less average CRE costs leaves $3m for pit development and exploration,so i'd hazard a guess and say CRE cashflow neutral,or needing that extra million or two from FML.

I have no doubt FML PRODUCTION OVER THE NEXT 6 MONTHS will be at RECORD LEVELS by contrast.

FML's being happy at progress at CRE,has little to do with current production and more with future results and what's happening on the ground now.

This current outcome was as i expected,but i have concerns about the BARRACK AGREEMENT.

For those saying production forecasts and oz realisation were all part of the CRE plan before FML took control,may i suggest a bit of backreading of a few CRE quarterlies.

One hopes that the ore reduction,is simply a case of FML men on the ground refusing to dig up UNECONOMIC CRE ORE and truck it to Barrack,not a case of slowly being frozen out of milling capacity.

DYOR+DYODD FML STILL A BARGAIN