re: no hedging of prices Vinn,I have re read the announcement...

re: no hedging of prices Vinn,

I have re read the announcement and if you are right then the wording is quite ambiguous. To me it clearly indicates that there are terms attached to the offtake agreements. It specifically says "the terms are significantly better than those assumed in the cashflows outlined in the Company's ASX announcement dated 5th April, 2006". It then goes on about the interest for the remaining portion and finally talks about upward exposure to strong metal prices.

I hope you are right about output being unhedged as the price of zinc does indeed look robust.

If in fact there is no hedging then PW needs a lesson in grammar. Rather than try to stuff everything into one sentence he should've written something like this.......

1. Given the fact that prices for base metals are at historically high levels, in particular zinc, cash flow projections are expected to be far better than outlined in the Companies ASX annoucement in April 06.

2. We have not hedged any of our forward production at this stage as we wish to gain exposure to the potential for further increases in base metal prices whilst market forces are protecting us on the downside. Naturally we are monitoring market dynamics and our strategy in relation to hedging may change accordingly.

3. We are pleased to report that we have secured offtake agreements for approximately half of our output.

4. In addition we have received numerous expressions of interest for the remainder of our output. Based on this we feel finding customers to purchase our zinc will not be an issue.

Just my thoughts.

All the best
Boomer