http://mining-bulletin.com/index.php/read_9604.htmlThe contract...

http://mining-bulletin.com/index.php/read_9604.html

The contract was for BHP price which is a fair bit lower but still trending up. And if we manage to renegotiate the contract, then Zambian ore at ~48% is a slighlty higher again. Or use your value.

The margin isn't very high so Mn prices really need to hold or increase. If they retrace then looks marginal. We now know the production/transport cost from the scoping study. Once you take corporate overhead including two new Noble directors, rent, loans, etc. It will be profitable but only once ramped up to full output.

The above deduction is obvious when KAB are telling you they need another drawdown of $5.5mil in 15months. Clearly they don't see cashflow sustaining the business and expansion/drilling.

But I do think it was a prudent decision to shift focus from Chowa pit despite the high grades.