firm commitments, page-67

Kookie,

They haven't been delivered the $...the directors delivered the dollars. Very big difference.

Kingkev, AN is not a preliminary. It's production rate will get upgraded over the first year. It will be putting out 18,000 to 20,000 tonnes a year before PB is even in production.  Although the new finds at PB are starting to make it look like it will grow as well, the AN production rates would generate cash flow of US$69 million per annum at today's Cu price and at 12,000 tonnes. Take that up to 18,000 tonnes and it's about US$104 million per annum. Yes, costs to come out but that is not the sort of money that I would call "preliminary" and all of that at $2.57 Cu...imagine if Cu does go back to $3.50 or more and that is just stage 1.

Awoonga, you just don't get it. Gus has given you a good insight and it is significantly more complex than even that. It's obvious that you have always been a wage earner rather than a business operator. Just as it's obvious than a number of the posters in here have been successful business owners. The ones that scream loudest about lost profits due to "massive dilution" which were in fact around industry norm don't seem to realise that the alternatives were diabolical and this outcome will actually serve us all well. If they didn't have the relationships in place to deliver those dollars what was the alternative? Close up shop?  Park the company and watch it hit 2c? Chew up the remaining capital with a little more drilling and then die? Context is everything. That approx 30% massive dilution will come back to us. The first couple of percentage points will come back via the better deal AVB will now be able to strike when selling their concentrate. Not being under pressure to come up with a contract is already seeing improved offers from the rumours I hear. Not having to pay interest for the US$50 or US$60 million will see many more points come back to us. Being up and running and building in the trough of the cycle will see our build costs come in substantially cheaper and return another large chunk of those percentage points. Once up and running years ahead of any other viable alternative will see us generating cash flow ahead of others and able to take opportunities as they arise, scale of returns unknown but likely substantial. Being in production as the predicted surge in copper price hits in the next two or three years rather than then going out to get finance to build at the most expensive part of the cycle to finish just in time for the copper price to drop again?  Priceless....  the 30% has already come back to us.

The options, a typical range will give directors 5 to 10% of the company. Sometimes a lot more. This package will come in at 6% so towards the bottom of the scale. I would have liked to have seen them set at 1c not 10c. I want the directors to be able to keep their newly acquired shares when they convert the options, not have to sell them for a cash windfall and then still lack incentive. I am hopeful that this  is what will happen due to the long time period for them to get up.

Awoonga, you said "Before anybody starts putting up excuses for our directors, you receive rewards for what you have done in the past. Not what you may achieve." Awoonga, it's simply not how the system works for all the obvious reasons and just shows your lack of understanding. Factually incorrect as well. Options need to be incentive and need to be set early.

You simply have no idea! In fact given your reference points I wonder why you and a few others even hold. You seem to have a pessimistic view of the company yet stay invested in $ and posting time? If the directors don't perform do you really think that the big 3 would leave hem steering the ship? If so also naive.