looks ok to me, page-25

allow me to make a simple observation.

1) September quarter was cash neutral. The company failed to produce at 2.5 koz per month and had extra site costs (stripping low grade ore/ overburden). According to the company these operation conditions have ended. An update NOW from the company would be good to confirm forecast for October.

2) Cash costs are to drop to target of $700/ oz. If forecast is hit then that is 700 * 7500 oz for the quarter. This equals 5.3 million costs. Add another 700k for other odds and sods thats 6 million outgoing for the quarter.

3) 7500 ozs produced. At $1350 AUD/ oz that is 10.1 million

4) gross profit equals 4 million for the quarter.

OMG are those numbers right?

I guess I'm a dreamer guys. Now back to the debt situation ....... 6 million minus 4 million equals??????? No wonder AAM has not had any creditor issues!!!

I think it is really important to put the FACTS into perspective.

1) CIL plant is operating at capacity

2) grades are approaching expected levels

3) additional costs of mining have been confronted. Not an issue for this quarter.

As stated by the company the single biggest risk is cashflow. The CIL plant is the principle cog in the wheel and so the fortunes of AAM rely heavily on the performance of the plant.

Prediction: Watch AAM take off once the performance for the December quarter is reported (i.e. hit forecast levels and debt reduced). I cannot wait to counter the 'end of the world' sooth sayers with FACTS at the end of this quarter.

Its all about risk and reward guys. If you can tolerate risk (i.e. company fortunes linked 100% to plant performance) then the upside looks good imo. If the risk is too great for you then obviously get out of the kitchen.

I've evaluated the risk, recognize the potential for pain and have accepted the consequence should it happen. But I expect to see plenty of upside in the near terms as operations clearly demonstrate that AAM has turned the corner.

Good luck guys (neigh sayers). I'm sure some of you are quietly accumulating !!!!

GC