encouraging quarter

Just very briefly my thought re. Q3 report that is traditionally short of concret financial results

negatives

- Northmine underground behind schedule --> mill feed less than expected --> ore treated down --> zinc production down --> cash cost up to 50usC/lb

- no real progress at Flinders - just blabla

positives

- cash cost were the lowest in FY 2004/05 in absolute terms

- highest lead output despite lower mill feed

- Potosi mine permit received

- encouraging drilling results

- new land acquired / optioned with CBH resources

- zinc was sold at 59.4 usC/lb on the average

- overall 20 Mio. AUD operating CF from Broken Hill

- Daisy Milano commenced production (9000 ore stockpiled) in Q3

- Korean zinc exchanged the 20 Mio. loan facility into equity at 1.01 $ per share

- Korean Zinc just provides new loan facility (20 Mio.)


As you can see the positives overweight the negatives here and IMO 1.01$ will be next stop on the way up to 1.20$ and hopefully beyond. 1.20$ seem to be the cap till next quarters result with much better mill-feed.

See ya

Lenni