Arhidas,Mining plants in essence are fixed cost operations. ANL...

Arhidas,

Mining plants in essence are fixed cost operations. ANL is currently breaking even at around 29,000 tonnes a year production.

Lets say 40,000 is max, thats an additional 11,000 tonnes a year at say $8,000US a tonne @ 59cAUD and 60% ANLs share = $89 mill a year in additional cash flows. Not bad at all. Coupled with $300mill next stage in claim against Fluor, 60% = 180mill (but lets discount to say $100mill. This is enough to pay out Glencore. So now you have ANL debt free and producing strong cashflows.

Naturally all the above is dependant on the success of the capital recififcation program and nickel prices remaining strong. By June this year we should be in a posiiton to assess its progress.